Explore the Glood Commerce Experience Platform
Grow faster with the world’s first commerce experience platform.
Onsite Personalized Recommendations
Feature 01
Feature 01
Learn More
Personalized Marketing
Feature 01
Feature 01
Learn More
Upselling and
Cross Selling
Feature 01
Feature 01
Learn More

5 Ways to Increase Average Order Value in 2022

Is it possible to have your current customers remain loyal to your brand and buying more from you? Here are 5 proven tactics to increase your Average Order Value and ultimately, boost revenue quickly and effectively.

December 20, 2021
mins read
5 Ways to Increase Average Order Value in 2022

What keeps every Shopify or Shopify Plus business owner up at night? The question of how to boost revenue quickly and effectively, amongst other things.

In ecommerce, Customer Acquisition Costs are high and for many small Shopify businesses, budgets are low. Getting visitors to your online store and having them complete a purchase takes a lot on both the time and money fronts – SEO, paid media, email marketing, et al.

The good news is, you don’t really need to go looking for new customers. You can start growing your online store’s revenue by delivering greater value to your current customers. By sharpening your focus on this group, instead of new shoppers, it is possible to skyrocket your store’s conversions and revenue.

So, what gives?

The key is to increase the average order value (AOV) and get existing customers to buy more. AOV, i.e. the average value of your online sales, is one of the most important success metrics you should be tracking. This can be calculated by dividing the total revenue by the number of transactions.

There is a lot of value in channeling your focus towards increasing the AOV for your online store. For starters, selling to your current customer base is easier than getting a new one. If you get this right, not only will customers buy more from you, but they’ll remain loyal towards your brand.

To increase AOV, it’s crucial you figure out what your shoppers value, and what drives their actions.

This guide gives you 5 proven tactics to boost your average order value and hack sales growth without spending big bucks.

Step 1: Display Personalized Product Recommendations on Shopify Store

In ecommerce, it pays to get really personal.

A study by Barilliance shows how personalized product recommendations can dramatically increase the average order value. The average order value on Shopify stores shoots up more than 300% when visitors engage with a single recommendation!

Another study by Salesforce shows that a prospect’s per-visit spend is 5x when they click on a recommendation.

Remember that your visitors are not looking for just products, but for a seamless buying experience centered on their needs and interests. To design an excellent customer experience, it is important to get to know your visitors.

Personalized Recommendations based on user's preferences

One of the best, and time-tested ways, to do that is to offer Personalized Product Recommendations based on a shopper’s browsing behavior. Be it a first-time visitor or a loyal customer, the shopper’s browsing behavior has important cues that you can leverage to personalize their experience.

Sometimes, visitors view items of interest without making a purchase but may come back with a desire to purchase where they left off. What a bummer would it be if they decide to leave because they couldn’t find the product again! You can offer an uninterrupted buying experience by placing a ‘Recently Viewed Items’ widget on the homepage. Even if the customer may not have visited your store to purchase previously-viewed products, inviting them to reconsider in this subtle way can change their minds.

Amazon is a good example. The ecommerce giant designs personalized home pages based on previous onsite search. If you spend time browsing through smartphones, it automatically displays smartphones that suit your budget on your personal page, the next time you visit.

Product recommendations on Shopify store are all about offering a thoroughly personalized shopping experience relevant to each individual user. Instead of spending on increasing store traffic, use product recommendations to increase AOV and customer loyalty.

Tip: Place a ‘Recently Viewed Items’ widget on shopper pages so prospects have the products on their radar before they commit to a purchase.

Step 2: Upselling and Cross-Selling Related Items

When done the right way, upselling and cross-selling not only add value to the shopper’s buying experience but also have a direct impact on the AOV. To increase AOV, either persuade customers to buy more items or to buy more expensive items.

Amazon upsells smartly by displaying ‘newer versions’ of the item the prospect is eyeing. And if you’re looking to buy a DSLR on the store, it will recommend a memory card to go with it in a bid to cross-sell.

Now, these traditional tactics are so popular precisely because they work so well. But in the uniquely competitive ecommerce market today, you need a more strategic approach to upselling and cross-selling on your Shopify store.

Tip: Display social proof to build trust around the product. To cross-sell successfully, display accessories for a product in a ‘People Who Bought This Also Bought’ section.

Personalization is the key here.

When you recommend a product on your online store, do so by leveraging the power of data at your disposal. Keep the customer’s tastes, previous purchases, and history at the heart of your upselling and cross-selling strategy.

Step 3: Time-Sensitive Offers For your Shopify store

‘FOMO’ or Fear Of Missing Out is real; the human brain is naturally wired to respond to urgency.

From the perspective of increasing AOV, this is good news. Time-sensitive discounts with countdown banners will push customers towards checkout with bigger carts. Often, customers are confused between products, so a time-sensitive deal will fast-forward the decision-making process.

Moreover, personalization can come in handy even here. Say, you find upon analysis that a prospect has been eyeing a pair of boots for a long time without making a purchase. You can send a time-sensitive discount email with a countdown to their mail address, urging them to not miss out. Nine out of ten times, this strategy works as high price is among the most common reasons for cart abandonment.

Step 4: Down-Selling Add-Ons

The concept of recommending a low-priced, add-on product at checkout works effectively in persuading a shopper to place a bigger order. The logic is simple – Suppose a shopper makes a total purchase worth of $100 at the grocery store, only to be tempted into purchasing a candy bar at the checkout line because, well, it’s just worth a dollar or two more! Well, that is down-selling at play.

Down-selling as a strategy to increase AOV works best for customers who have just declined an upsell. Let us see how virtual down-selling would look like – Suppose a customer has purchased a beautiful gown for which your website recommends a matching pair of earrings. To your dismay, the customer ends up declining the offer as it is above their comfortable price bracket. The incentive to get such a customer to purchase would be to recommend them another pair of gorgeous danglers; this time, in a price range they’re comfortable with paying (think cheaper).

Step 5: Create Bundles for your Shopify store

Bundling products works well because it takes some work off of your customers’ plates. When you offer bundled packages, it takes less effort for prospects to buy more. Now, they save on time spent on research, plus purchasing items in a package works out to be cheaper than buying individually.

To increase the AOV even more, add customization options to your bundles. Think a McDonald’s meal that gives you more bang for your buck and lets you choose burgers, fries, and drinks option. You love the extra food at a lower price and McDonald’s enjoys higher revenue numbers.

Tip: Display smart bundles on Product Pages. Apart from shooting the average order value up, this will give your customers the ease to choose from ready-made bundles.

Modern shoppers have a natural affinity towards brands that keep them at the center – targeting their likes and interests. When it comes to strategies that work the best for increasing AOV, personalization takes the cake. In fact, it is also a powerful tool to boost conversions and increase customer satisfaction.

In all, using Personalized Product Recommendations on your Shopify store have a positive impact on a prospect’s propensity to buy. Once you get this right, shoppers will leave your store having purchased more items, and growing your revenues steadily.

Loved the read? Share:
Get latest updates directly in your inbox.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

Join the world’s fastest growing brands.
Schedule a Demo.

Request a demo