|5 tricks to boost the average order value in your ecommerce store|
Friday, January 18, 2013
So you've got traffic coming to your site, your customers are filling up their shopping cart and purchasing your products, brilliant! But what if you could increase the amount your customers spend per transaction?
By following the tips below you may just be able to increase the amount of money your customers hand over each time they shop with you.
1) Bulk Purchase Incentives
Depending on the kind of products you sell, offering customers an incentive to purchase multiples of the same products can be a great way to sell more products.
For example – ‘Buy 1 for $19 or 2 for $29’ or ‘Buy one for a friend for just $10 extra’
You see this sort of promotion often and it has been proven to work. Most shoppers can’t resist the idea of getting a second product so cheaply, even if they don’t really need it.
2) Bundled Products
Bundling several complimentary products together and offering a discount on their ‘sold separately’ price is another effective tool in increasing average order value.
Let’s imagine you sell bicycles and bicycle accessories, you could offer a ‘bicycle starter kit’ containing a tire pump, lock, drinks bottle & lights. If you display on the product description how much can be saved by purchasing this bundle, many customers will add this money and time saving bundle to their shopping cart even if they only really intended to buy a lock and drinks bottle.
3) Up Selling & Cross Selling
This is a very popular ecommerce feature as it allows ecommerce store owners to showcase related products to customers just before they checkout.
Using the bicycle store example above - if a customer has a bicycle in their shopping cart, you could cross sell the bicycle starter kit to them, or upsell to a better model bike.
4) Loyalty / Gift Card Offers
Offers such as ‘Free $20 gift card on your next purchase when you spend $100’ can be a very effective method of encouraging customers to add ‘one more item’ to their order.
For example if a customer has $80 worth of items in their shopping cart and they see this offer, they are affectively getting a $20 product for free if they add it to their order.
You would of course hope that they put the $20 gift card towards another large order when they come to spend it.
5) Free Delivery Offers
This one is a favorite of mine and has been proven to be highly successful, online shoppers LOVE free delivery.
If you charge customers $5 for delivery on an order worth $40 but free delivery on all order over $50, they are much more likely to bulk up their order to take advantage.
Offering free delivery on all orders can hit your bottom line hard so set a threshold which you think will encourage customers to spend that little bit extra.
Not all of these tips will be usable by all kinds of ecommerce stores so pick the ones you think could work and put them into action today!
VP-ASP Shopping Cart Software
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