For e-commerce businesses, outstanding conversion is the ultimate goal. Attaining this is very challenging, and a lot of effort is expended to pull in the target sales. But to make it big by selling online, it’s not just about sales volume but also the value that each order carries. To holistically increase your eCommerce conversion, you should aim not only to improve your sales volume but also to increase your average order value.
What is Average Order Value?
Average order value refers to the typical amount that each sales transaction accounts. The larger the average order value is, the more that your customers are spending on one transaction. If each transaction has a large value, then it will take fewer transactions to reach your sales target. Meanwhile, if your average order value is on the low-end, then a lot of sales transactions are needed before you can reach your target.
To truly have your e-commerce business rake in sales, it should be your goal to not only increase sales volume but to improve your average order value as well. This holiday season, sales volume is expected to be at its highest. Your goal now should be making this volume carry more weight. Here are some tips on how you can do just that:
Check your Analytics
The first step in improving your average order value is to determine your current performance. It’s always best to identify your starting point and to determine the factors at play.
By now, you should be aware that analytics is very important for your business, and it is trusted that you use it to your favor. Use your preferred analytics tool in determining your current statistics. Also, identify the least and the most performing products. It would also be great to evaluate the performance of your campaigns as to which one is bringing in sales, and which ones need more work.
Doing all these put you in the proper position to start all your efforts to improve not only your average order value but your sales in general.
Bundles and Exclusive Item
Xbox One Exclusive Offer During Holiday 2015
One of the most straightforward ways to increase your average order value is by bundling products together. Of course, this would not be effective if your bundle just about anything, but products that do complement each other, and would make a great deal in the eyes of your customers.
This holiday season, gift giving is very popular so it would be great if you offer related products together. For example, if you have game consoles in your product offerings, it would be great if you can bundle these with games. This will generally make the deal a lot better than if they are bought separately.
If you also have new and exclusive items, it would be great to bundle these with those whose performance is on the lower end of the spectrum so that they can be bought together.
Strategize on how best you can bundle your product offerings together so that your customers would end up buying more than just one, leading to higher average order values.
Offer First Time Deals and Gift Vouchers
Another effective way to improve your average order value is by enticing first time customers to transact big the first time. Provide discounts and promotions that can only be used if they reached this relatively high (yet attainable) value. Doing this can push your average order values up, and would help you earn a positive first impression from your customers.
Just make sure that you be realistic in the required value before the discount kicks in because otherwise, this won’t bring about the desired results. Worse, your customers would think that you are not exactly offering a promotion at all as it is almost unachievable.
Utilize Social Media to Promote your Deals
For your deals to reach far and wide, it is a good idea to implement a social media strategy. There are many different campaigns that you can conduct within the realms of social media such as paying for a Sponsored Ad on Facebook, hire an Influencer to endorse your product on Youtube or Instagram as well posting your content on the right time when your demographics are actively on social media websites. This can boost the efforts you put into improving your average order value.
Limited Time Offer Deals
yummybazaar.com offer for the Holidays
This holiday season, limited time offers would be seen flocking about, and this is for a reason. It is a proven tactic that when you provide deals, putting a time limit makes it even more effective as it triggers the sense of urgency in your customers.
If there’s a time constraint, your customers would feel like they would be missing out on a great opportunity. Not only does this somehow taps the impulsivity of a lot of modern-day buyers, but also influences them to buy a lot more in one transaction, thereby improving your average order value.
Offer Fast and Free Shipping
One of the factors that can set an e-commerce business from its competitors is its delivery service. It is important for customers to get their order as fast as they possibly could. But of course, partnering with shipping services or providing one yourself costs a lot of money, so you have to strategize how you can do this efficiently.
shipping when they meet a set amount. This doesn’t only make your shipping more worthwhile, but it also helps improve your average order value. With a lot of transactions going about this season, it is important to make each delivery worth it.
Improve your Average Order Value this Holiday Season with these Tips
With the holiday season getting nearer, your sales volume is expected to go up. To even make your sales figures more exciting, it is also recommended to that you put your average order value to work. The tips above can help you achieve it, and effectively at that. Make the most out of holiday sales with sales that are boosted across all aspects.