Increase Your Order Value With Smart Upsells

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10 Best Tips to Increase Average Order Value (+AOV Calculator)

10 Best Tips to Increase Average Order Value (+AOV Calculator)

Huge profits and just covering costs are separated by a fine line, where the average order value becomes the deciding factor.

If you’re running an eCommerce business, especially an WooCommerce store, getting your customers to spend a bit more each time they buy can significantly impact your bottom line. But, how do you increase average order value?

We’ve got 10 best tips to share with you. These tips will help you get your customers to spend more increasing your average order value. We made sure these tips are simple and you can start using them right away. Let’s get started.

Increase 20% of your average order value by suggesting relevant products using UpsellWP easily.

What is Average Order value?

Average Order Value (AOV) is the measure of the average amount of money spent. AOV helps businesses understand how much money customers are spending on their products or services on average.

How to Calculate Average Order Value?

To calculate average order value (AOV), divide the total revenue by the total number of orders.

For example, you made $10,000 in revenue from 200 orders in a month. To find the Average Order Value (AOV), you divide $10,000 by 200. So, the Average Order Value for this store in that month is $50. This means that, on average, each order placed by a customer was worth $50.

Know your AOV accurately by using this intuitive calculator.

How to Increase Your Average Order Value in 5 Easy Ways?

Let’s explore six strategic ways to encourage your customers to spend more, effectively raising your AOV.

Employ Cross-Selling and Upselling Techniques

Cross-selling means suggesting related or complementary products to a customer based on their current selection. Upselling means suggesting customers to buy a premium or upgraded version of the chosen item.

Implementing these both ways increase the value of a purchase, boosting your Average Order Value (AOV). 

Cross-sell and upsell

Pro tip: Always align cross-selling and upselling suggestions with the customer’s purchase history and preferences to ensure recommendations feel personalized and relevant.

Curate Bundle Offers for Enhanced Value

By grouping and bundling up items at a slightly lower price than if bought individually, customers are more likely to add additional items to their cart. 

For example, the Freebird brand bundles up shaving products into a kit to increase the average order value.

Bundle offer of Freebird brand

Pro tip: Strategically select items for bundles based on complementary usage or seasonality to appeal to customers’ immediate needs.

Create loyalty Programs

You can create loyalty programs and reward customers for various engagements like purchase, referrals, social shares and more. The most popular reward types are loyalty points, discounts, free products and free shipping. 

This way can prompt customers to increase the size of their orders.

For example, Skelligs Chocolate runs a loyalty program where they reward customers for placing orders, referrals, creating an account and more.

Creating loyalty program

Pro tip: Tier-based loyalty programs lead to a notable increase in AOV as customers aim to reach higher tiers of rewards.

Offer Limited-Time Deals and Promotions

Limited-time deals create a fear of missing out (FOMO), encouraging customers to make a purchase before the offer expires.

Also, it is equally important to promote these deals prominently on your website and through your marketing channels like social media, email, etc.,

Limited-Time Deals

Pro tip: Phrases like “Only a few left,” “Offer ends soon,” or “Last chance!” can amplify the sense of urgency.

Utilize Free Shipping Thresholds

By setting a minimum purchase amount for free shipping, you can encourage customers to add more items to their cart to meet or exceed this threshold.

For instance, if the free shipping threshold is set at $50 and a customer’s cart is at $40, they are likely to look for additional items worth at least $10 to avoid paying for shipping.

10 Best Tips to Increase Average Order Value

Based on our research on increasing the average order value through many possible ways, we came to a stopping point that implementing upselling and cross selling techniques proven to be very effective in increasing your AOV.

Even the numbers say so. A research from Gitnux states that you can increase average order value up to 10-30% using upselling tactics alone.

We have finalized some of the best upselling and cross-selling tips that you can consider implementing in your WooCommerce store. Here is the rundown of the tips:

Tip #1: Offer Upsells at Checkout Page

Checkout upsell

Introduce last-minute upgrade options at checkout to increase total purchase value. For example, if a customer is purchasing a T-shirt, offer sunglasses at the checkout page.

Implementation checklist:

  • Set up a relevant checkout upsell that complements the items in at the checkout.
  • Ensure the offers are easy to understand at the checkout
  • Do A/B testing to different upsell items and offer to see which convert best.

Tip #2: Cart Page Upsells

Cart upsell

Suggest additional products in the cart page that add value to the customer’s current selection. For example, suggest sunglasses in the cart page when a customer adds a T-shirt to their cart.

Implementation checklist:

  • Place the cart page upsell offers prominently on the cart page.
  • Customize the template with clear and concise text.
  • Provide an easy option to add these offers to the cart without leaving the page.

Tip #3: Bundle Items as Frequently Bought Together

Frequently bought together

Offer bundles or combinations of products that are often bought together to increase the average order size. For example, create a bundle of a t-shirt, shoe, and sunglasses.

Implementation checklist:

  • Analyze sales trends to identify popular product combinations.
  • Adjust the discount pricing to reflect the bundle deal.
  • Use the upsell, cross-sell, or the related products as frequently bought together suggestions.

Tip #4: Promote Add-Ons on Product Detail Pages

Product add-ons

Suggest related products on the product page, either before or after the “Add to Cart” button. This strategy can enhance sales by presenting items that complement the main product.

Implementation checklist:

  • Choose relevant add-ons for each main product category.
  • Price the add-ons with attractive discounts to encourage addition.
  • Make the add-to-order process simple.

Tip #5: One-click Post-Purchase Offers

Post-purchase offers

You can engage customers by displaying exclusive offers after they’ve made a purchase. Setting timers for post-purchase offers additionally increases the curiosity to buy products.

For example, once a customer buys a t-shirt, display the post-purchase time limited offer screen of a hoodie at a discounted price.

Implementation checklist:

  • Develop an attractive offer related to the purchased item.
  • Personalize the offer based on the purchase.
  • Monitor the analytics using a clear dashboard.
  • Create an urgency using timers.

Tip #6: Implement Upsell Popups

Upsell Popups

Use timely popups to suggest upgrades or additional items when customers take action towards purchase.

For example, when customers go ahead to click “Proceed to Checkout,” “Add to Cart,” or “Place the Order,” display the upsell popups with additional products.

Implementation checklist:

  • Trigger the upsell popups with relevant products at discounted price.
  • Keep the call-to-action clear.
  • Customize the popup template eye-catching teaser texts.

Tip #7: Create Add-Ons in the Cart Page

Cart add-ons

You can encourage customers to add more items to their cart with targeted add-on suggestions under each product in the customer cart.

For example, offer a gift wrapper add-on when a customer picks a mobile phone.

Implementation checklist:

  • Identify items that complement the main product without overwhelming choices.
  • Display the add-on items within the cart view.
  • Set a lower price for add-ons to encourage their inclusion.
  • Provide clear value propositions for each add-on.

Tip #8: Provide Next Order Coupons

Next order coupons

Offer coupons for the next purchase as a thank you for the current order, enticing customers to return.

For example, give a 10% off coupon for their next order when a customer buys products.

Implementation checklist:

  • Clearly communicate the coupon details and expiration date.
  • Automate coupon delivery via order confirmation emails also.

Tip #9: Thank You Page Upsells

Thank you upsells

Once a customer places the order, display upsells in the thank you page that the customer might be interested in.

Implementation checklist:

  • Customize thank you page upsells with relevant products.
  • Keep the offers aligned with the original purchase.
  • Ensure the purchasing process for these upsells is quick and easy.

Tip #10: Introduce Double the Order Options

Double the order

Encourage customers to double their orders with a compelling incentive, such as a discount or a value add that will prominently lead to increase in the average order value.

Implementation checklist:

  • Highlight the benefits and savings of the offer.
  • Integrate a one-click option to accept the deal.
  • Monitor and adjust the offer based on customer uptake and profitability.

Get started with UpsellWP’s targeted product recommendations and increase your average order value quickly.

Final Words

Boosting your Average Order Value is key to driving profitability and growth for your e-commerce business. Each of these ten tips offers a strategic approach to encourage customers to spend more, enhancing their shopping experience while increasing your revenue.

Test different approaches, measure the results, and refine your methods accordingly. With the right combination of offers, incentives, and customer understanding, you can increase your average order value noticeably.

How can I increase my average order value online?

You can increase your average order value by offering bundle deals, cart and product add-ons, post-purchase upsells, checkout and cart upsells, next order coupons, thank you upsells and much more.

How do you increase average sales value?

Upselling higher-end products, cross-selling complementary items, and creating exclusive package deals can effectively increase the average sales value.

What is a good average order value?

A good average order value (AOV) varies by industry but is typically a figure that shows growth in customer spending over time relative to the cost of acquisition.

How can I increase my AOV in e-commerce?

Utilize tactics like personalized recommendations using upsells and cross-sells, limited-time offers, and customer rewards programs to incentivize higher spending.

Why does average order value matter?

AOV matters because it’s a key metric indicating overall profitability, effectiveness of marketing strategies, and customer buying behavior.

What does a high average order value mean?

A high AOV indicates that customers are spending more per transaction, which can signal strong product value and effective sales strategies.

Is a 5% increase in sales good?

A 5% increase in sales is generally good, showing positive growth, especially in competitive markets or during economic downturns.

Why is high AOV good?

High AOV is good because it boosts revenue without proportionally increasing acquisition costs, improving overall profitability.

What is the purpose of average value?

The purpose of the average value is to provide a single figure representing the central tendency of a dataset, helping in understanding overall trends.

What is the importance of average value?

The average value is important for making informed decisions by summarizing data into an understandable figure, indicating typical performance or behavior.

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