You build a Magento eCommerce website, fill up your store with products and market it well. However, it results into the few orders. You do all these to find out that your customers purchase the same quantity of products every time, resulting into the same bill amount each time. What can you do to increase your revenue then? Well, you can bring in more traffic to your store, but finding new customers is extremely difficult, time taking and expensive. Instead, you must try selling more items to the existing customers and make sure they end up checking out with larger carts each time they visit your store.
Average Order Value: what is it?
Before discussing about the process of increasing the average order value, let us first put the exact meaning into the lime light, as most people do not know its actual meaning. An average order value of your store is the average amount of bill per customer per transaction. To calculate the average order value, you must divide the total revenue of your store by the total number of transactions.
In order to increase the average order value, you must increase the bill amount per transaction by adding up more products to the carts of your customers. There are multiple ways you can do this, so let us take a look at some of the most important tips and tricks to increase your average order value…
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Recommend products: When a person adds the product to cart and is all set for check out, you can put up the relevant recommendations based on the products already added in the cart, saying people who purchased this also purchased this’. This will make people check out those products and they may result into buying them too.
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Display accessories or related products: You can also display the related products or popular products in the cart page, so that people might end up buying those more expensive products with more features. So, up-selling really helps in raising the average order value.
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Set minimum purchase amount for free shipping, gift or coupon: The best way to increase the bill amount of all the orders, you can attract customers with schemes. Give them incentive of free shipping, a free gift or a coupon that they can redeem on the next purchase, any of these three on the minimum amount of purchase. Set the limit as per your goals.
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Set loyalty program: Setting up a loyalty program for the products that customers keep buying repeatedly almost every month will help you not only increase your average order value, but also build long term relationship with your customers.
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Bundle products: You can create packages by bundling up two products which costs lesser to customer if bought together as compared to that when bought individually. This will attract customers and they will want them to buy thinking it is profitable to them. On the other side, it will increase your average order value, as customer was not going to buy that another product at all, if he was not offered it at discount by clubbing with the first product. So, cross-selling can increase the average order value.
Make sure you implement the above mentioned tactics to increase your average order value, so that you can increase your revenue without spending your time, money and resources in finding new customers. Good luck for the same!
