Most marketers’ first inclination when it comes to growing revenue is to locate new customers—but that isn’t the only method to grow.
Another strategy for revenue growth is to consider ‘Average Order Value’.
In addition to attempting to win over new customers, you can extract more value from the customers you already have by boosting your Average Order Value (AOV) or Average Basket Value (ABV). That implies you can expand your business without increasing your marketing, advertising, and other expenses. This article discusses 6 strategies to increase AOV using WooCommerce Product Add-Ons.
6 Ways to Increase Average Order Value Using Product Add-Ons
WooCommerce Product Addons can be a valuable tool for improving average order value (AOV) because they allow merchants to offer additional items or services to customers at the point of sale. Here are a few examples of how product add-ons can boost AOV:
- Order Minimums for Free-shipping
- Loyalty Program
- Limited Time Promotions
Merchants can persuade customers to purchase higher value by providing complimentary or upgraded things. A merchant selling laptops, for example, could offer an extended warranty or a laptop bag as an add-on. Below are a few ways to evolve your upselling strategy:
- Don’t oversell; instead, recommend as a friend would.
- Increase the likelihood of purchase by offering low-value upsells.
- Experiment with post-purchase upsells.
Display or mention complementary products to your customers whenever possible to increase sales. This might be as basic as saying which items complement one other in your product descriptions. Make it apparent in your messaging and store design that your items have additional value when combined with other items.
Bundles are things that go well together or are usually sold together. This will encourage customers who were just interested in purchasing a portion of a set to purchase the entire (and more expensive) set, raising your average order value.
You may also provide small discounts for ordering multiples of the same item. Customers may realize the savings from buying in bulk and add more items to their shopping basket.
Order Minimums for Free Shipping
You can provide free shipping if a customer’s order exceeds a particular amount to entice them to add additional things to their carts. For example, you may provide free shipping on orders of $50 or more. Many online businesses utilize this method to improve their average order value. If you opt to offer free shipping with a minimum purchase amount, make sure to promote it on your website’s homepage, product pages, and at checkout.
Consider implementing a rewards or loyalty program if your store sells consumable products that customers must renew, such as razors or shaving cream. Developing a customer loyalty program is a retention strategy that will assist you in building relationships with your customers and increasing client lifetime value.
Limited Time Promotions
Nobody wants to pass on a good offer. The need to add more goods to the cart can be triggered by urgency. To raise your average order value, try offering short-term discount codes (with a 24-72 hour timeframe) on specific items.
You can always use a few tried-and-true promotions to enhance purchase values temporarily.
- Buy one get one free
- Percentage off on products
- Bundle discounts
Overall, product add-ons can be an effective way for merchants to increase average order value by offering customers more value, convenience, and options.