Average order value is one of the most important metrics to track.
Data shows that online shoppers are more likely to convert and become lifelong customers by implementing simple AOV eCommerce best practices.
Leveraging certain social media platforms, bundling products, optimizing social proof, and implementing coupon offerings are just some of the ways to increase your average order value per customer.
Let’s get into some of the raw data, and see why increasing AOV is an eCommerce benchmark you cannot ignore.
Before we dive into how to increase your average order value, let’s take a moment to visualize how it’s calculated. Here’s a great visual from Sweet Tooth Rewards:
As you can see above, the process is really quite simple. Simply take the total revenue of your business and divide it by the total number of orders taken.
Calculating average order value may be easy. Increasing it though? That proves to be a more difficult venture.
As an online store, leveraging social media as a strategy to increase sales is a no brainer. Broadening your customer reach across multiple social platforms is one of the best ways to increase average order value for your business.
Data curated from our friends at Shopify breaks down which social channel generates the highest AOV.
As you can see above, Polyvore surprised everyone by bringing in the highest average order value of all social media platforms. Easily the least recognizable channel out of all the ones listed, Polyvore has nonetheless created an engaged, loyal community where eCommerce retailers have heavily focused their AOV marketing.
In the age of cellular connectivity, data shows that average order value from desktop purchases still significantly outperforms mobile conversions.
According to AOV eCommerce benchmark data from Demac Media, desktop AOV is 20% percent higher than that of AOV on mobile.
Although there is a clear uptick in mobile AOV, shoppers still tend to feel more comfortable completing purchases on a bigger screen.
When deciding where to strategize your AOV marketing, knowing this data is critical in effective decision making.
The good news for eCommerce retailers is that there are great tips and tricks to increase average order value. We listed some of our favorites that have proven to be tried and true ways your business can effectively increase AOV.
Social proof is one of the best ways to improve both average order value, as well as customer lifetime value.
Bundling products together in packages is a great tactic to increase average order value.
Shoppers always appreciate when they can purchase multiple products at a discount, such as a starter pack or holiday bundle packages.
This proves that less is sometimes more in the long-run when implementing AOV marketing.
Cross-selling is a tool in which to show off relevant products that a customer may be interested in purchasing when looking on a product page.
Online shoppers tend to be looking for more than just one item when browsing, so cross-selling can be an effective way to increase average order value.
Offering coupons to customers is a great way to get them back purchasing on your site. Shoppers always appreciate when businesses offer discounts for a second go-around of purchasing, in turn increasing average order value of said customer.
One of our favorite AOV marketing growth hacks, email upsells is a Yotpo secret weapon.
Our smart algorithm chooses the products that are most likely to entice customers back to your site in the mail after purchase form.
This clever tactic is a proven way to intrigue shoppers who have already purchased about similar products, boosting AOV across the board.
Ultimately, average order value will go hand-in-hand with increased profits and growth for your eCommerce business.
Using tips and best practices such as creating social proof, cross-selling products, and offering coupons are proven growth hacks to increase average order value for countless retailers.
What are some of your favorite ways to increase AOV? Let us know in the comment box below!
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