How to Outsmart Your Peers on Improving Average Order Value (AoV) For BFCM

We are only a month away from this year’s biggest shopping weekend. Black Friday and Cyber Monday (BFCM) are the two most important days for shoppers and online retailers in the US.

Data from Adobe Analytics show that Cyber Monday and Black Friday 2020 saw online sales worth $10.8 billion (up from 9.4 billion in 2019) and $9 billion (up from 7.04 billion in 2019), respectively.

With the pandemic becoming a thing of the past and people’s income levels increasing, eCommerce brands expect this BFCM to be the best ever. However, does having more customers mean higher revenues? Do more orders mean more income? The answer is - not always.

Instead of looking at the sales or inventory on a micro level, eCommerce brands prefer looking at the AOV or average order value.

AOV refers to the average dollar amount a shopper spends on orders on your platform. The average order value helps an eCommerce brand analyze customer trends and modify product prices/positioning to optimize revenues.

The AOV provides a clear idea of the items customers prefer to buy and allows them to evaluate the pattern to make better business decisions, such as investing more in revenue-generating segments or improving the visibility of the weaker segments.

AOV also enables eCommerce brands to determine the amount they should invest in generating each sale and customer. Some eCommerce companies combine AOV with CLV, or customer lifetime value, to get better insights.

So, improving the average order value is crucial if you want to outsmart your peers by increasing your revenues. When it comes to enhancing the AOV, no other time is better than BFCM.

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5 Time-Tested Tips to Improve the Average Order Value for BFCM 2022

From offering a better search experience to customers to raising the threshold for free shipping, you can do several things to outsmart your peers while increasing the AOV during BFCM 2022.

Here are five proven tips to increase the AOV of your eCommerce store:

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1. Provide a Better Search Experience to Customers

Your website is a powerhouse of information for customers visiting your eCommerce store during BFCM. Although marketing is a vital part of increasing sales and AOV, the search experience comes on top of everything. It determines how conveniently your customers can browse and buy the products they want.

Ensure to add tabs like ‘Search Filters’ to allow customers to find items based on size, price range, colour, etc. Enable ‘auto suggest’ to predict keywords while customers type product names. You can also display chosen products around the search bar, allowing shoppers to find products quickly.

Besides doing the things mentioned above, you can provide recommendations if a customer arrives on an empty product page to reduce the drop-offs.

Optimizing the search experience can lay the groundwork for improving your AOV during BFCM 2022.

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2. Raise the Threshold for Free Shipping

A stress-free way to increase your AOV is by introducing or enhancing the threshold for free shipping.

For example, if you do not charge any shipping charges presently, introduce them before BFCM 2022. However, make sure to keep the charges low since your loyal customers may abandon their carts if the shipping charges are too high. If you already charge shipping fees, increase the threshold within your customers’ tolerance level.

Generally, 30% is a decent figure for the free shipping threshold. So, if the average order value is $50, add 30%, or $15, and offer free shipping on orders above $65.

Some eCommerce stores display or send notifications to customers if their cart value falls short of the free shipping threshold. This can prompt your customers to add a few more items to get free shipping, increasing the AOV.

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3. Go Overboard When Offering Discounts

Traditionally, discounts have been a major reason customers shop during BFCM; this year will be no exception. It is not hard to spot discounts of up to 70% at the peak of the BFCM weekend. So, you must offer discounts to woo customers.

However, ensure that the discounts do not come in the way of improving your AOV. A wise way to handle this issue is by prescribing a minimum spend to get exclusive discounts.

For instance, instead of offering a flat discount of 50%, you may make a purchase of $50 mandatory to get a 50% discount on the order value. This way, you can stay assured about the minimum purchase value and modify your product prices according to the purpose.

You may also offer volume discounts. So, the more products a customer purchases, the higher the discount will be.

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4. Bundle Deals are the Best

Bundle deals are not new. Brick-and-mortar stores have successfully experimented with this technique to increase their sales. However, online stores have been relatively reluctant to adopt this strategy to boost sales.

If you want to outsmart your peers in BFCM, bundle deals are something you must not ignore. Bundle deals are simple. You can motivate your customers to buy two products to get the third one free or buy two products to get a free gift. Some eCommerce brands sweeten the deal with cashback or e-rewards.

By giving bundle offers, you provoke your customers to increase their AOV, which in turn increases your sales. To increase your revenue, adjust the price of the free gift or extra product in the final price.

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5. Make Your Customers Feel Special With a Gift Card

A gift card is the simplest tool to attract repeat customers. Generally, many unique shoppers visit online websites to purchase products during BFCM. A gift card can be an excellent device to bring those unique shoppers to your website during or after BFCM.

Generally, top eCommerce stores give gift cards for free or tie them with purchases or orders. For example, you can give a gift card of $5 on a purchase of $35. If you want to target BFCM to increase the AOV, set a deadline by which the shopper should use the gift card.

However, before offering gift cards, make sure to adjust the price to optimize your profits. Remember, the primary objective of a gift card is to boost your sales and increase your profit. So, the pricing must be in your favour.

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Conclusion

Now that you know the top 5 tips to increase your AOV during BFCM, use these strategies to outsmart your peers and boost your bottom line.

Visit Glood.ai to personalize your website and use advanced analytics to boost your brand value. Our expertise in website optimization helps eCommerce brands make informed decisions and use professional insights to drive sales.