Expert Tactics That Will Help You Increase Your Average Order Value (AOV) - Part 3

In the previous part, we looked at some of the best tactics to increase the average order value, and in this article we will continue with more of the proven practices in the online battles, which are guaranteed to positively affect the average order value of your store. Without wasting time, let's start with…

The Magic of Time-Based Discounts

Time-based discounts are a curious method that taps into the fascinating realm of human psychology, specifically our innate fear of missing out (FOMO), also, our desire to take advantage of limited-time opportunities. By offering discounts only for a limited period, you create a sense of urgency and excitement, compelling cusomers to make a purchase sooner rather than later.

🛒 The Right Way to Utilize Scarcity and Urgency to Drive Sales

Let’s be real here, scarcity and urgency are two of the most potent motivators that are driving us daily. When customers perceive that a product is scarce or that a discount will soon expire, they are more likely to take immediate action. Highlight limited stock levels or limited-time availability to create a sense of scarcity. Use countdown timers or time-sensitive messaging to amplify the urgency and encourage customers to seize the opportunity.

🛒 Implementing Time-Limited Promotions Effectively

To execute time-based discounts effectively you should be mindful of a few specifics. First, carefully select the duration of the discount to strike a balance between urgency and customer convenience. Too short, and customers might feel rushed; too long, and they might procrastinate. Second, clearly communicate the start and end times of the promotion, ensuring customers are aware of the limited timeframe. Finally, consider segmenting your audience to offer exclusive time-based discounts to loyal customers or subscribers, fostering a sense of reward and exclusivity.

🛒 Best Practices for Communicating Time-Based Discounts

When communicating time-based discounts, make sure to employ persuasive and engaging messaging. Use attention-grabbing headlines, vivid visuals, and compelling copy to emphasize the limited-time nature of the offer. Clearly state the discount percentage or value, along with the original price, to highlight the savings customers will enjoy. Additionally, leverage multiple communication channels, such as email newsletters, social media posts, and website banners, to reach a wider audience and maximize the promotional impact.

By understanding the psychology behind these discounts, utilizing scarcity and urgency, implementing time-limited promotions effectively, and communicating them with impact, you can leverage the magic of time-based discounts to boost your AOV and create a buzz around your brand. But there is another similar player in this category - the Quantity based discounts. Let’s learn more about them.

Leveraging Quantity Discounts

Quantity discounts are a strategic pricing technique that encourages customers to buy more of a product by offering reduced prices for larger quantities. This approach taps into our natural inclination to seek value and savings, enticing customers to increase their order size and ultimately boosting your AOV.

🛒 Encouraging Larger Purchases through Tiered Pricing

Tiered pricing is a powerful way to leverage quantity discounts. By offering different price points based on the quantity purchased, you incentivize customers to consider buying more to reach the next tier and unlock greater savings. This strategy not only increases the value of each transaction but also creates a win-win scenario where customers feel they are getting a better deal as they buy in larger quantities.

🛒 Using Social Proof to Validate Quantity Discounts

Social proof is a psychological phenomenon where people rely on the actions and opinions of others to guide their own behavior. When it comes to quantity discounts, you can leverage social proof by showcasing testimonials or reviews from satisfied customers who benefited from buying in larger quantities. This validation reassures potential customers that taking advantage of quantity discounts is a smart and popular choice.

🛒 Present properly the benefits of Bulk Purchases

Effectively communicating the benefits of bulk purchases is essential to maximize the impact of quantity discounts. Highlight the cost savings customers can achieve by purchasing in larger quantities, emphasizing how they can stock up on products they frequently use or take advantage of long-term supply. Additionally, showcase the convenience and time-saving aspects of bulk purchases, such as fewer trips to the store or reduced shipping costs.

By leveraging quantity discounts, you encourage customers to increase their order size, boosting your AOV while providing them with added value. Through tiered pricing, social proof, and effective communication of the benefits, you can create a compelling case for customers to embrace larger purchases. 

Another effective way to supercharge your sales is by tapping into the power of Product Bundles. Let’s learn more.

Тhe Power of Free Shipping to Increase Average Order Value

One effective strategy (we mean one of the MOST effective) is to increase Average Order Value (AOV) by offering free shipping to customers. Free shipping has proven to be a powerful incentive that can drive higher purchase values and lead to increased revenue for e-commerce businesses. Here you should keep in mind two things. First, offering free shipping by itself is a powerful way to increase your conversion rate. Also, by setting a minimum order threshold (or other applicable requirement) you increase your AOV on top of that.

Now let's explore why free shipping is so impactful and how you can leverage it to optimize your AOV.

🛒 Free Shipping - One of Phrases With The Strongest Psychological Appeals in eCommerce

The studies have shown that seeing “free shipping” taps into the psychology of consumers, as it creates a perception of added value and savings. When customers see that they can get their desired products delivered without incurring shipping charges, it can be a strong motivator to make additional purchases or increase the number of items in their cart. The notion of "getting something for nothing" triggers a positive response and can influence customers to spend more to qualify for the free shipping threshold.

🛒 Removes Purchase Barriers

Shipping costs often act as a deterrent for customers, especially when they add a significant amount to the total purchase price. By eliminating shipping fees, you remove a potential obstacle that may prevent customers from completing their purchase or discourage them from adding extra items to their cart. Free shipping helps streamline the checkout process and enhances the overall shopping experience, encouraging customers to spend more.

🛒 Increases Perceived Value

Offering free shipping can enhance the perceived value of your products. Customers are more likely to view an item as worthwhile and of higher value when they know they won't incur additional costs for its delivery. This perception can positively influence their willingness to spend more on each order, boosting your AOV in the process.

🛒 Works Synergisticly With Upselling and Cross-Selling

Free shipping can (and should) be strategically used to promote upselling and cross-selling opportunities. By setting a minimum order value required to qualify for free shipping, you can motivate customers to add more items to their cart to reach that threshold. This approach encourages customers to explore additional products and can lead to increased order values as they discover complementary items or higher-priced alternatives.

🛒 Building Customer Loyalty and Repeat Purchases

You can apply another advanced conversion rate optimization tactic and start offering free shipping as a benefit to loyal customers or as part of a rewards program can help foster customer loyalty. When customers associate your brand with the convenience of free shipping, they are more likely to return for future purchases. Repeat customers tend to have higher AOV as they become more familiar with your product offerings and are willing to spend more to take advantage of the added value provided by free shipping.

In conclusion, incorporating free shipping as a strategic element in your e-commerce business can have a significant impact on your Average Order Value. By leveraging the psychological appeal, removing purchase barriers, increasing perceived value, promoting upselling and cross-selling, and building customer loyalty, you can encourage customers to spend more per order and drive higher revenue. 

Here is an article in our help center, showing you how to use our powerful Bump Cart to create a rule for a minimum order value required for a free shipping qualification.

To learn everything about all types of discounts that you can set-up with a few clicks in your CloudCart store, please review this section of our help center.

Unleashing the Potential of Product Bundles

Product bundles are a fantastic way to captivate customers by offering them a curated selection of complementary items in a single package. Bundles tap into the appeal of convenience, value, and the opportunity to discover new products. They provide a one-stop solution that saves customers time and money while increasing your AOV.

🛒 Creating Irresistible Bundles that Complement Each Other

To create compelling bundles, carefully select products that naturally complement each other. Consider items that customers typically purchase together or products that enhance the overall experience. For example, if you sell skincare products, you can bundle a cleanser, moisturizer, and sunscreen to provide a complete skincare routine. The key is to offer a cohesive package that makes sense and adds value for your customers.

🛒 Pricing Strategies for Maximizing Bundle Sales

Pricing is a critical factor in maximizing bundle sales. Implementing a strategic pricing strategy can incentivize customers to opt for the bundle rather than purchasing individual items. Consider offering a discounted price for the bundle compared to the total price of the individual items. This creates a perception of value and encourages customers to choose the bundled option. Experiment with different pricing strategies, such as fixed pricing or variable discounts, to find what resonates best with your target audience.

🛒 Effective Marketing and Promotion of Product Bundles

When marketing and promoting your product bundles, highlight the convenience, value, and savings customers can enjoy by purchasing the bundle. Of course, as with the rest of the tactics, use persuasive language, appealing visuals, and clear messaging to communicate the benefits. Of course, product bundles are not reserved for your website only, you can use email campaigns, social media platforms, and other marketing channels to create awareness and generate excitement around your bundles. In each channel, you should consider showcasing customer testimonials or reviews to provide social proof and build trust in the value of your bundles.

With well-crafted product bundles, you can offer customers an enticing combination of products while increasing your AOV. Set your CloudCart product bundles following this easy step-by-step guide on how to add product bundles in your CloudCart store.

Taping into the appeal of product bundles, various discounts, cross-selling, and upselling is a powerful way to explode your AOV. But all of that won’t work if you don’t have the last part of the equation - a highly optimized checkout process.

Optimizing the Checkout Process

A seamless checkout experience is crucial for converting potential customers into paying customers. Simplify the process by minimizing the number of steps required, removing unnecessary form fields, and providing clear instructions. Use a clean and intuitive design that guides users smoothly through each stage, from adding items to the cart to completing the purchase.

🛒 Start by Reducing Friction and Cart Abandonment

It is really important to reduce any possible friction point in the checkout process that can lead to cart abandonment. To achieve that, start by identifying and addressing common obstacles that cause friction, such as unexpected shipping costs, complex forms, or lengthy loading times. 

Make sure to provide the following optimizations:

• Transparent pricing and shipping information upfront
• Offer multiple payment options
• Optimize your website's speed to ensure a smooth and hassle-free experience.

🛒 Implementing Guest Checkout and Easy Account Creation

You can go to the next realm of speed optimization by offering a guest checkout option. This is crucial because it caters to customers who prefer a quick and hassle-free purchase. Give users the option to complete their purchase without creating an account, eliminating barriers that may deter them from finalizing their transaction. At the same time, provide a convenient option for customers to create an account during or after checkout, making it easy to save their information for future purchases.

🛒 Upselling at the Checkout: Grab the Last-Minute Opportunities

The checkout page is an ideal place to present customers with last-minute upsell opportunities. Offer relevant add-ons, complementary products, or exclusive discounts to entice customers to increase their order value. But don’t forget to present these options in a non-intrusive manner, such as through recommended products or optional upgrades, ensuring they enhance the customer's experience rather than creating additional distractions.

By optimizing the checkout process, you can minimize friction, reduce cart abandonment, and increase your AOV. Streamline the user experience, remove obstacles, and provide a seamless path to purchase. Offer guest checkout and easy account creation options, catering to different customer preferences. Lastly, leverage the checkout page as a strategic opportunity for upselling, maximizing the value of each transaction. 

With an optimized checkout process, you can boost conversions, enhance customer satisfaction, and drive greater revenue for your business. 

Learn how to do it the CloudCart’s way by checking out this article in our help center that explains step-by-step everything you need to know, so you can optimize your checkout process using Bump Cart (our checkout process optimization).

Final thoughts on boosting your AOV

Congratulations on your patience to read our thorough guide! You're now armed with a comprehensive set of strategies that can boost your AOV and drive significant revenue growth. 

Remember, increasing AOV is not focused on making more sales, it’s about maximizing the value of each transaction. By implementing cross-selling tactics, upsell techniques, time-based discounts, quantity incentives, product bundling, and optimizing your checkout process, you'll be on your way to achieving remarkable success in no time. Happy selling!

Also, if you want to reach unprecedented results - see this article on optimizing the conversion rates in your store.