How To Increase Your Average Order Value

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Sample of our how to increase your average order value template:

HOW TO INCREASE YOUR AVERAGE ORDER VALUE Most business owners believe that increasing business revenue is mostly done by finding new customers or combining website traffic and conversion rates. However, one other very effective means is to increase your average order value. Increasing your average order value ensures that you draw out more value from your existing customers. With this, you don't have to invest heavily in deeper advertising and marketing to new audience members. Rather, you can combine customer behavioural patterns with your existing advertising techniques to maximize the effectiveness of your strategy. For better understanding, we have put together a guide to show you the best tactics to help increase your average order value, which in turn increases your ROI and your overall sales revenue. Importance of Average Order Value Average order value, also referred to as AOV, is the average amount spent every time a customer places an order from your website or store. Your average order value is an important benchmark for estimating customer behaviour. AOV helps business owners understand your customer behaviour, what products are purchased most frequently, and how you can increase it to fit your customer base. Some of the major benefits of increasing your average order value are that it: upscales your overall sales revenue brings in more revenue over time helps to recover the cost of acquiring customers more quickly increases the lifetime value of your customers. To calculate your business' average order value, you only need to divide your total revenue by the total number of orders. The formula is: Average Order Value = Total Sales Revenue / Number of Orders All the information you require is your total revenue and the number of orders. It's also a straightforward equation that doesn't require special software or skill to help crunch numbers. Best Tactics to Increase Your AOV The best tactics to increase your average order value include: Understanding Your Audience It's important that you consider your audience's needs. Understand what their purchase motivators are and how your products/services will come into play to satisfy their specific needs. Once you have this covered, it becomes easier to tailor your campaign to specific needs. You can do this by running surveys and communicating directly with your customers to understand their needs. User testing, for instance, helps you learn about your customers and increase your average order value. Also, studying your competition and analysing past campaigns will inform your decision-making process. Cross-selling Complementary Products To increase your average order value, it's a good strategy to cross-sell complementary products to your customers. That way, you can make a bigger sale. You can do this by either cataloguing the products together or mentioning that the items pair well with one another in your product descriptions. Emphasize that your items become more valuable when they're paired with the other products