Although you should always be striving to expand your customer base, it is also important to recognize that your existing clients can be a rich source of ongoing profits.
The secret lies in learning how to increase the average value of each purchase, a metric known as average order value (AOV).
By implementing some or all of the following suggestions, you can raise your AOV and thereby boost sales, elevate revenue, and increase your customer lifetime value.
1. Make your products appealing
In today’s global marketplace, customers have countless sellers from which to choose. That’s why it is vital that you find ways to make your products stand out, even if they are identical to what your rivals are selling.
To that end, make it a priority to display clear images, engaging text, and social media pages that allow potential customers to visualize themselves owning and interacting with your merchandise.
Augment what you are highlighting with information about compatible peripherals and other add-ons, and you are even more likely to see a spike in the extent and quantity of items ordered.
2. Offer social proof
You can tout the virtues of your products all day long, but your words will never pack as much punch as will the testimonials of satisfied customers.
Again, people want to picture themselves using a product or service. When someone similar to them, with whom they identify, provides evidence of their own positive experience, a prospective buyer will be far more willing to take the leap of faith required to make a purchase.
Any seller who knows how online payments work would agree that establishing this initial trust is the most significant barrier that must be overcome before a guest can be transformed into an actual customer.
3. Personalize the customer’s shopping experience
The point of sale system that you use to accept online payments does much more than simply transmit purchase transactions. It also contains database capabilities that enable you to store the crucial nuggets of information that your customers voluntarily provide.
These can include everything from demographics and buying histories to personal information like hobbies and milestones.
Then, with just a few clicks and a nod to your system’s reporting and customer relationships tools, you can come up with ways to make each person’s buying experience unique to them.
When presented with tailored, curated suggestions, even the most hesitant buyer is more likely to make an additional purchase.
4. Institute a free shipping threshold
Especially if you have a small business, you might not always be able to afford free shipping for lower-ticket items.
However, you can elevate your AOV significantly if you prominently display a free shipping threshold. Customers whose orders fall below this minimum will, more often than not, drop another item or two into their cart in order to gain this no-cost delivery benefit.
5. Offer product bundles
Combining merchandise into appealing packages is another great way to boost your AOV. Deals on complementary goods allow you to cross-sell and raise awareness of articles that might otherwise have escaped the customer’s notice altogether.
Strategies that allow people to buy three for the price of two or that include a free gift for choosing a featured bundle are great ways to boost the total value of an order.
6. Give coupons and gift cards
When someone makes a purchase, include a gift card or coupon, making sure to notify the buyer that they have received this promotion.
Generally, it makes sense to require that the card or coupon be used within the next few days or weeks. If you include any free gifts in this campaign, be sure that your pricing covers their cost.
7. Down-sell
Another effective strategy to raise your AOV is to offer a cheaper item at a one-time low price after the initial purchase has been completed.
This is especially effective when the less expensive item you offer is compatible with or somehow related to what the person originally bought. This is a great way to build on the enthusiasm of someone who is already invested in what you are selling.
8. Make time-sensitive offers
Fear of missing out (FOMO) is real, and you should definitely capitalize on it.
Greet prospective customers visiting your site with features that highlight discounts that will only last for the next few hours or days. This is especially effective when you show how much money the buyer can save by acting now.
This will encourage them to make a commitment to merchandise they may have already wanted but had hesitated about buying. Best of all, they may even congratulate themselves for finding a special deal unavailable to others.
9. Provide excellent customer support
Making an online purchase can be a lonely and sometimes frustrating process. When potential customers are confused or have questions with no way to reach out to someone who can help, they are very likely to click away to a friendlier and more responsive rival.
If at all possible, offer live support from human representatives who can answer questions and even make suggestions about compatible products that can enhance a purchase.
Furnishing even this level of support can demonstrably expand your AOV while simultaneously raising client satisfaction rates.
You worked very hard to get each and every one of your existing customers. Now that you have them, make the most of the potential revenue that they can bring into your business.
North is a leading financial technology company that builds innovative, frictionless end-to-end payment solutions designed to simplify and grow businesses of all sizes. From the front door, to the back office, the developer world, and partnerships that expand the payments landscape, North offers proactive, comprehensive merchant services, in-house processing, and more.
