4 Ways to Increase your Average Order Value

The holiday season is one of the most important times of the year for marketing and sales. Customers are eager to buy, and with consumer spend at an all-time high, this is the time of year that it can be a little easier to convince them to make a purchase on your ecommerce site. But are you getting the maximum value from every order? We broke down some simple steps to implement on your website to make sure that each customer is bringing in the most revenue possible.

The better you understand your customer, the better you can determine their value, and how market to them. One crucial way to understand your customer is by determining your Average Order Value (AOV). Your AOV is a formula that determines the average amount of money each of your customer spends per transaction:


By understanding the AOV for each of your segments, you can make data-based choices on how much each customer is worth, which helps determine your budget for marketing, advertising and content.

One of your most valuable segments in terms of AOV, are your returning customers. While gaining more customers is always positive for any company, targeting your existing customers can be beneficial for the performance of your business and overall revenue.

Your brand can increase the AOV just by concentrating on those loyal customers, which will create better ties and hold onto those long-term customer relationships. (For more tips on how to turn one-time seasonal shoppers into lifelong customers, check out this post)

Here are tips on how you can get your customers to spend a little extra this holiday season:


Many customers are out to find one specific product without having a look at the other products your company offers. Smaller carts equal smaller AOV’s. By providing product recommendations you can get that customer to spend more.

An example is having recommendations like “Customers who bought this, also viewed”, or “Complete this look” if your business is in the apparel industry, with other recommended products and add on’s.

The technique of providing recommendations based on other customers viewing it works well as it incorporates a psychological term called social proof. Popularized by Dr. Robert Cialdini, this term describes our reliance on the behaviour and opinions of others to inform our own. It is like jumping on the bandwagon or being a follower; it is the reason we choose to take a chance on unknown brands based on what others are saying about it. Social Proof works for many companies online and can be a way to gain profit with your business.

Your company can provide recommendations based on your own business priorities which might be wanting to sell slow-moving stock or wanting to sell a particular product during a season. This tactic can increase and improve the customer experience and encourage customers to buy more with simple suggestions, hand-picked items or add-ons.

Cross-Sell: Promoting a complementary product Upsell: Promoting a product upgrade or more expensive version

Order Minimums for a Discount

Free shipping for a minimum spend is a valuable way to increase your AOV. This evergreen strategy acts as an incentive for orders over a certain amount and makes the bond between your business and consumer much stronger.

Other ways to use the minimum order incentive can be offering coupons or free gifts. For example, giving a 15% discount on orders over $75, or a free t-shirt on orders over $100.

Types of discounts:

Percentage based discount: These can be small percentages like 5%-10% or larger discounts like 20%-25% to drive sales. Significant percentages 50% and over are for liquidating merchandise that is old and that you want to get rid of.

Dollar value discount: This discount acts as a credit, as it makes people feel like they’re wasting money if they don’t use it. An easy trick to calculate when and how you can use percentage or dollar is using the 100 mark. If your item is less than $100 then use percentage; if your product is more expensive, use a fixed dollar value.

Free Shipping: These are used in conjunction with a minimum purchase.

Free gift: Use this discount strategically to get rid of old merchandise or product that is hard to sell.

Loyalty Program

According to the 2017 COLLOQUY Loyal Census, “great discounts” are the number two reason consumers join customer loyalty programs, and Stitch Labs found that loyal customers spend 120% more than new customers annually. With focusing on a loyalty program, you can expect to see your AOV increase significantly.

Creating a greater exchange of value will result in customers who spend more and get more out of your brand. Setting up a customer loyalty program is a type of retention strategy, allowing you to maximise the profitability of each customer. Where there is incentive, there is an AOV increase and a greater business to customer relationship.

Bundles & Packages

While creating packages in general can increase the perceived value of a customer’s purchase, it is also a way to gift your products over the holidays. Think about holiday themes, and holiday packaging.

Creating that all-in-one package or solution for the desired experience is a tactful way to get your customers to spend more. Featuring add-ons, product accessories or a customizable kit can significantly increase your AOV and make that transaction count.

Your Average Order Value (AOV) is an important aspect for your business performance. When your brand is focusing on the relationship with engaging those who are already buying, there is less to lose and more to gain. Sell more to people who want to buy more!

What is your business doing to retain those current customers? Do you need help planning how you can market to your current customers? Get in touch with us today to get started!