Increase your average order value



Business Benefits

Increase online sales by enlarging the value of each sale.

Segment your audience using the RFM model - recency, frequency of ordering, and monetary value.

If you have a Shopify store, you can use a tool like Reveal.

Identify the segment that places the orders with the highest AOV, look for common characteristics and write down a series of ideas to experiment with, based on your findings.

For example, if you notice that the segment with the highest RFM score buys complementary products, try to cross-sell those products to the segments with lower AOVs as well. If you notice that the segments with higher AOVs place their orders on weekends, send promotional emails on weekends to the segments with lower AOVs.

Look for products that are bought together to create bundles and offer a small discount.

This works best for complementary products such as electronics and batteries, delicate clothing items and their specific cleaning products, pet food and pet toys, and so on.

Upsell a product that costs about 60% less than the one already in the shopping cart.

Show the upsell offer when a product is added in the cart, but not in the checkout flow, to avoid confusing users.

Offer a quantity discount.

For example, if you sell products that are commonalities, such as cleaning or personal care products, offer a small discount for buying 2 or more items.

Offer an upgrade on more expensive products.

When buying more expensive products, people tend to take higher risks than when purchasing cheaper items. For example, if you sell electronic products or expensive fashion items, recommend expensive products with more and better reviews, made of better materials, more sustainable, or products that come from renowned brand.

Keep track of important milestones in your customers’ shopping behavior and offer discounts to loyal customers.

For example, note their first order, their 10th order, their 1-year anniversary and so on. Offer discounts for purchases made on these special occasions.

Offer extended warranty for a small additional fee.

For example, if you sell electronic products that have a 1-year warranty, offer a 2-year warranty for an additional 20-30% of the original price.

Offer additional services such as faster delivery, free returns, or complementary services.

For example, if you have a furniture online shop, you can offer a mounting service for an additional fee, or door-to-door collection or delivery. If you sell mattresses and bed textile, you can offer cleaning services.

Last edited by @hesh_fekry 2023-11-14T11:55:20Z

This will help improve CLTV but I am not sure if this increases AOV. Any thoughts?

That’s a good point, Umar. You could argue that a regular customer might inclined to buy more in a single order if they get a percentage discount or a “$X off with [purchase slightly over average order amount]” offer.

One example of the last that I’ve seen recently is Coles supermarkets in Australia. Members of their Flybuys scheme who buy frequently get personalized offers for Flybuys bonuses, and these are often quite generous - like $40-50 worth of points if they spend $240 on their grocery shop between specific dates. People are more likely to buy a few luxury items to hit the target amount.