Every eCommerce and DTC business wants to make more money without constantly chasing new customers. The key? Increasing your Average Order Value (AOV)—the amount a customer spends per transaction. By strategically boosting AOV, you can maximize revenue without increasing your customer acquisition costs.
At Retain Email Marketing Agency, we help brands optimize their sales strategies. Here’s how you can increase AOV and drive higher profits.
Why AOV Matters
Higher AOV means better profitability. When customers spend more per order, your revenue grows without additional marketing spend. Plus, it improves customer lifetime value (LTV) and improves the overall shopping experience.
Many eCommerce businesses focus solely on traffic and conversion rates, but AOV plays an equally crucial role. If you’re not actively increasing AOV, you’re leaving money on the table. Imagine spending thousands on paid ads, only for each customer to buy just one low-margin product. That’s a profit leak. Fixing AOV ensures that every customer contributes more to your bottom line.
What Works (to Increase AOV)
1. Upselling & Cross-Selling (When Done Right)
- Upselling: Encourage customers to buy a premium or upgraded version of a product.
- Cross-selling: Suggest complementary products that enhance their purchase.
- Example: If someone buys a coffee machine, don’t just stop there. Show them premium coffee beans, a grinder, or a descaler kit.
🔹 Brand Example: Apple – When purchasing from Grind, it suggests add-ons, increasing their average order value significantly.
2. Bundle Deals & Product Packages
- Create value-packed bundles to encourage higher spending.
- Example: A skincare brand can bundle cleanser, toner, and moisturizer at a slight discount.
- Use messaging like “Get More, Save More” to increase perceived value.
🔹 Brand Example:
3. Free Shipping Thresholds
- Offer free shipping on orders over a specific amount.
- Example: “Spend $75 and get FREE shipping!”—this encourages customers to add more items to their cart.
🔹 Brand Example: Sephora – Their “Free Shipping on orders over $50” strategy increases cart value as shoppers add small items to hit the threshold.
4. Limited-Time Offers & Volume Discounts
- Use urgency-driven promotions: “Buy 2, Get 1 Free” or “Extra 15% Off on Orders Over $100.”
- Works well for consumable products like supplements, beauty items, and snacks.
5. Personalized Product Recommendations
- Use AI-driven recommendations based on past purchases.
- Display “Customers Also Bought” sections to encourage add-ons.
- Example: Someone buying running shoes? Suggest performance socks or insoles.
🔹 Brand Example: Amazon – Their algorithm-driven “Customers who bought this also bought” feature is a major AOV driver.
6. Loyalty Programs & Rewards
- Offer points or cashback incentives for larger orders.
- Example: “Earn double points when you spend over $50.”
- Encourages repeat purchases and higher cart values.
🔹 Brand Example: Starbucks – Their rewards program gives bonus stars for purchasing multiple items, increasing AOV per visit.
7. Subscription & Auto-Replenishment Options
- Introduce subscription models for frequently used products.
- Offer a small discount for auto-replenishment.
- Example: “Save 10% when you subscribe for monthly deliveries.”
🔹 Brand Example: Dollar Shave Club – Their subscription model ensures repeat purchases and a higher AOV per customer over time.
Implement & Track AOV Growth
To measure success, track AOV in Google Analytics or your eCommerce dashboard. Experiment with these strategies and adjust based on customer behavior.
At Retain Email Marketing Agency, we help brands implement high-converting AOV strategies that increase revenue without increasing ad spend. If you want expert guidance on optimizing your sales strategy, let’s chat.
