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Today we are going to talk about a few ways to increase your average customer value or average order value.
You spend time and money getting leads and customers so it is important that you maximize the Average order value, because that is your profit. The more money your customers spend obviously the more profit you will make.
Here are a few ways…
1. Raise your prices
This may seem simple but often times it is just that simple. You need to figure out what your market will handle as far as pricing structure. Test our different pricing on a small percentage of your traffic to see what happens. The results may surprise you. Now some markets are extremely price sensitive and in one case just a .99 cent increase tanked the conversion rate. It is up to you to see what pricing you need to test.
A good rule of thumb when testing pricing is don’t test small increases such as $15 and $20. Test wider spreads such as $15 and $50. By increasing your price you may find that your conversion rate from click to sale may go down however the increase in revenue should more than make up for it.
2. One click upsells
We are very fortunate thanks to today’s technology that we have the ability to easily offer one click upsells. Many cart solutions have plugins or other tools that allow for it. When offering a one click upsell it should be a complimentary premium version of the product offered at a discount. For example you may sell a $20 product, try offering a $40 upsell. Play with the number of upsells and downsells you offer in your funnel.
Due to one click upsells for one client who had low margins we were able to bring the 30 day customer value up from $15 to just under $50 because of ONE simple upsell. Very powerful technique.
3. Adding additional product on checkout
Take a page out of Amazon’s playbook and offer products for sale upon checkout. “Those who purchased X also purchased Y”. Try offering a special offer or some kind of incentive to them to push them to add the product to their order. Make sure that the products are complimentary and you have a clear way for them to easily add it to their order.
4. Getting customers back for more
Thanks to techniques like retargeting you can present new customers with complimentary products easily. Give them incentives to come back and buy more through your ads. Additionally with email marketing offer new customers a expiring discount that brings them back to buy more as well. Have the discount expire within 7, 14 or 30 days. You can play with the timing to see what gives you the best results. You can do this through email marketing as well as simply giving your new customers a call.
There are of course many other ways to increase average order value and there are many different ways to execute the ones stated here. I hope this gives you some good ideas to take and test out on your own funnels.
That is all for today. Be sure to like, comment, share, and should you have any questions feel free to reach out as we are happy to help.
Talk soon and enjoy!