If you run a Shopify store, you’re probably always looking for ways to make more money. One of the easiest ways to do that is by increasing your Average Order Value (AOV). This means getting customers to spend just a little more on each purchase, so you earn more without having to bring in a ton of new shoppers. Let’s explore some simple, effective strategies to help you increase your AOV and grow your revenue.
What is Average Order Value (AOV)?
Average Order Value (AOV) is exactly what it sounds like – the average amount a customer spends when they make a purchase from your store. Here’s how you can calculate it:
Formula: AOV = Total Revenue ÷ Total Number of Orders
For example, if you made $10,000 last month from 200 orders, your AOV would be $50. Tracking this number can help you see how much people are spending per order and whether your sales strategies are working.
Why Is AOV Important?
The more each customer spends, the more revenue you make. Instead of trying to get new customers all the time, focusing on increasing AOV means you can earn more from the customers you already have. Plus, it’s a great way to improve customer lifetime value (CLV) by encouraging shoppers to return and spend more over time.
5 Simple Strategies to Increase Your AOV
1. Cross-Sell and Upsell
One of the easiest ways to increase AOV is by suggesting additional items (cross-sell) or encouraging customers to buy a higher-end product (upsell).
- Cross-Sell: If a customer adds a shirt to their cart, suggest related items like a matching scarf or hat.
- Upsell: If a customer is about to buy a basic skincare product, offer a premium option that includes more features, like a skincare set.
These simple suggestions can make a big difference in the total purchase value.
2. Create Product Bundles
People love getting a deal, and product bundles are a great way to encourage customers to buy more. For example, if you sell beauty products, offer a skincare bundle that includes a cleanser, toner, and moisturizer at a discounted price.
This gives your customers more value and encourages them to spend more than they would on just one product.
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3. Offer Free Shipping with a Minimum Spend
Everyone loves free shipping! You can increase your AOV by offering free shipping on orders over a certain amount. For example, if you offer free shipping on orders over $100, customers will be motivated to add more to their cart to avoid paying shipping fees.
Make sure your free shipping threshold is set slightly above your current AOV to encourage higher spend.
4. Loyalty Programs
A loyalty program is a great way to reward your best customers and encourage them to spend more. Set up a points-based system where customers earn points for every purchase, which they can redeem for discounts or free products.
The more they spend, the more rewards they earn – and that keeps them coming back to your store for more.
5. Use Limited-Time Offers
Creating urgency can push customers to buy more. For example, offering a “Spend $150, Get $30 Off” promotion for a limited time will encourage customers to add more to their cart to hit the discount threshold. You can also run flash sales or offer time-limited discounts to create a sense of urgency.
Bonus Tips to Boost AOV
- Volume Discounts: Offer discounts when customers buy in bulk, like “Buy 3, Get 10% Off,” which can encourage larger purchases.
- Push Notifications: Send personalized push notifications to remind customers about items in their cart or let them know about exclusive deals.
Final Thoughts: Grow Your AOV and Your Revenue
Boosting your Average Order Value (AOV) is an easy and effective way to grow your revenue without having to constantly find new customers. By using simple strategies like cross-selling, bundles, and free shipping thresholds, you can get your customers to spend more each time they shop.
Ready to take your Shopify store to the next level? At Plan My Apps, we help Shopify businesses like yours turn their store into a mobile app that drives more sales and increases AOV. Get in touch with us today to find out how a mobile app can help you grow your business!
