Be a Bold Ecommerce Company With Bold Commerce
Today I’m going to be talking to you about some things you can do right now to increase your average order values, gain repeat customers, and the best tools to make it all happen.
For ecommerce businesses, getting in front of big audiences and gaining new customers is always front of mind, but are spending so much time thinking about the number of transactions on your shop that you’re not also focusing on increasing your average order value? It’s all about the balance of quantity vs quality, and I want to give you some tips on tilting that scale.
Average order value (AOV) is the average amount of money that each customer spends on a transactional basis with your store. It’s calculated by dividing your total revenue by the number of orders. So let’s say your average order value is $30 and you receive 100 orders per day. If you’re strictly focusing increasing your number of customers and gaining about 10% in transactions per day, your revenue moves from $3,000 to $3,300. But what if you also focused on increasing your average order value by a modest 25% and your average order value increases from $30 to about $38. Even if you’re not gaining any new customers, your total revenue when focusing on the quality of each transaction rather than just the quantity, is about 15% higher. That can be a huge difference when you’re looking at the span of a week or month.
Increase AOV with Cross-sells & Upsells
Cross-sells: This is when your customer adds something to the cart, and you present a complimentary product, demonstrating the magnitude of your product catalog. If they accept the offer it gets added to the cart along with the original item.
Upsells: After the customer adds an item to their cart, you display an offer to upgrade + replace the original item. Offering upgraded versions or product models may better satisfy the customer’s needs – increasing average order value and insuring the customer walks away more satisfied with their purchase. If they accept the offer, the original item is removed and replaced with the upsell product. It’s the only Shopify app that allows you to do a true upsell - upgrading and replacing the original item added to the cart. Because the customer is already committed to buying an item, upsells convert 20 times more than cross-sells.
For managing your Cross-sell and Upsell offers, ONELIVE has partnered with Bold Commerce’s app known as Bold Upsell. Not only can the app to manage Cross-sells and Upsells, you can also create one-click upsells after checkout, which is actually the highest converting type of Upsell. After the customer completes the checkout, they are presented with one last chance to get a special offer. The big countdown timer creates urgency, compelling the customer to act fast and with one click, the product is added to the existing order. Another great feature of Bold Upsell, is the analytics and reporting dashboard, where you can see which triggers are working, which aren’t, and the best products, trends, and more.
Increase AOV with Bold Product Bundles
You can also increase your average order value by bundling your products. For this function, we love Bold Product Bundles, an app that allows you to create three types of bundles: Buy X get Y, Group Bundles, and Mix-and-Match.
Buy X get Y is a bundle type gives the customer a free bonus product when they buy a qualifying item from your shop. Here’s how it works: when a shopper adds an item to their cart, they’ll see a widget that let’s them know what they need to buy to qualify for a free product. If they want to move forward with the offer, with a single click, the bundled items are added to their cart along with the free bonus product.
With Group Bundles, the site will display a widget on your eligible product’s webpage promoting the discount your customer will receive by adding the other bundle items to their cart. If they accept this offer, the discount will automatically be applied at checkout.
These are all great ways to increase your average order value, but another important thing to consider, is how to get these customers coming back to your store.
Gain repeat customers with a loyalty program
Implementing a loyalty program is a great way to establish strong relationships with your customers and incentivize them to keep returning to your store. With Bold Loyalty Points you have the ability to customize your rewards program and plan your promotions in advance. You can choose if the customer can redeem their points for things like percentage discounts, dollar amount discounts, or even free shipping. In addition, these rewards can be based on loyalty tiers that you design, which allows your best customers get the best rewards.
Using subscriptions to increase customer loyalty
You can also incentivize customers to return to your store by offering subscriptions, which are especially useful for gaining repeat customers if you sell any sort of consumable products like vitamins, packaged food, or beauty and personal care items. We partner with Bold Subscription, which allows you to completely customize your subscription program. So, you choose if you want to offer subscription on a weekly or monthly basis, and even how you incentivize customers to subscribe to a product instead of making a one-time purchase. The whole goal here is to keep them from buying from you one month, then your competitor the next.
As I mentioned earlier on, it’s important to not only increase the quantity of transactions that you have on your store, but to also focus on making the most out of those transactions. The best way to do this is to incentivize you customer to purchase more or higher value products, and to incentivize them to return to your shop to redeem points or discounts.
Please feel free to email me directly with any questions email@example.com or go to onelive.com/start.