In the world of e-commerce, Average Order Value (AOV) often plays second fiddle to metrics like customer lifetime value (LTV), cart abandonment rate, and conversion rate. However, it's time for AOV to take center stage, especially when every customer acquisition costs $29 upfront. With customer loyalty becoming increasingly volatile in an oversaturated market, maximizing AOV is crucial.
Here are eight effective strategies to help your Direct-to-Consumer (DTC) brand increase its average order value and improve your overall return on investment (ROI).
1. One-Click Cross-Sell at Checkout
Consider the grocery store checkout aisle filled with tempting low-cost items. This impulse-buy strategy can be seamlessly adapted to your e-commerce store. By showcasing complementary, lower-priced items at checkout, you can encourage impulse purchases without the need for expensive displays.
For example, Laura Gellar, a DTC makeup brand, effectively cross-sells by offering products that complement the items in the cart. These suggested items are not only relevant but also affordable, making it easier for customers to add them to their purchase.
2. Highlight Product Longevity
If you sell consumable goods, it's essential to communicate the product's longevity. Indicating how long a product will last, such as a "90-day supply," can reassure customers about their purchase's value. This approach addresses a common e-commerce challenge where customers cannot physically assess the product's quantity.
For instance, 7 and 8 Figure Ecommerce brands found success by pairing their product quantities with a dosing schedule. This method clarified how much product customers needed and led to increased AOV, conversion rates, and upsell rates.
3. Gamify the In-Cart Experience
In-cart gamification offers incentives like discounts or free products for reaching certain purchase thresholds. This strategy not only motivates customers to spend more but also enhances their shopping experience.
Obvi, a DTC supplement brand, uses a progress bar to show customers how close they are to earning rewards such as cashbacks or free shipping. This visual cue encourages customers to add more items to their cart to unlock rewards.
4. Set a Strategic Shipping Threshold
Offering free shipping is a powerful motivator, but it can erode margins if not managed properly. Set a minimum cart value for free shipping that is slightly above your current AOV. This encourages customers to add more items to reach the threshold.
Jones Road Beauty, a DTC makeup brand, uses this strategy effectively by cross-selling bestsellers that help customers reach the free shipping threshold. A progress bar on the checkout page further incentivizes customers to add more to their cart.
5. Build Trust with Specific Social Proof
Trust is a key factor in increasing AOV. Specific social proof, such as detailed customer stories and testimonials, can build this trust. Highlight customer experiences that reflect your prospects' ideal outcomes.
For example, Crio Bru, a coffee-replacement brand, showcases specific reviews that resonate with their target audience. This tailored approach helps build trust and encourages higher spending.
6. Create Value-Driven Product Bundles
Product bundles can significantly boost AOV when curated strategically. Use past purchasing data to create bundles that appeal to different customer personas. Offering special discounts on these bundles can further incentivize purchases.
Your Super, a DTC health supplement brand, achieved remarkable success by prominently featuring product bundles across their website, emails, and product pages. This visibility ensures customers can easily find and purchase the bundles.
7. Write Educational Product Guides
Often, customers miss out on additional purchases because they don't understand the benefits of complementary products. Create detailed product guides, blogs, or ebooks to educate customers about how to use your products together.
For example, IKEA uses product guides to showcase various products and their use cases, helping customers see the value in buying additional items.
8. Implement a Loyalty Program
Loyalty programs incentivize customers to buy more by offering rewards. Data shows that customers who use loyalty rewards spend 39% more on average. A well-designed loyalty program can increase AOV and turn customers into brand advocates.
Revolution Beauty saw a 44% increase in AOV after implementing a loyalty program. The more customers buy, the more rewards they earn, creating a cycle of increased spending and loyalty.
Discover How Intelligence Media Can Help
At Intelligence Media, we believe that increasing your AOV isn’t just about selling more; it’s about delivering more value to your customers through strategic offers and a better shopping experience. Our team specializes in optimizing digital marketing strategies for e-commerce brands, helping you implement these AOV-boosting tactics effectively.
We understand that every brand is unique, which is why we invite you to a discovery call. This is an opportunity for us to get to know each other, understand your specific challenges, and explore how our expertise can support your growth goals.
Ready to elevate your e-commerce business? Book a discovery call with Intelligence Media today.
