How To Increase AOV on Your Shopify Store: 10+ Key Strategies

While driving traffic to your Shopify store is pivotal, using different strategies for average order value can benefit your bottom line. Having higher AOV indicates that the customers spend more per transaction- leading to more revenues and better ROI. So, how to increase AOV in Shopify stores?

This guide will show you 10+ key strategies to apply to your Shopify store to boost AOV. From strategic pricing techniques to irresistible upselling offers, we will cover practical tips for encouraging customers to throw more into their carts. Let’s begin!

Why Should Increasing AOV on Shopify Store Matter?

Raising your Average Order Value (AOV) in your Shopify store is not just a nice to have – it’s a smart move that pays off big time for your bottom line and long term success. Here’s why it should be up top:

• More Profit: Think of it this way: Instead of focusing on getting more customers, you’re encouraging the customers you already have to spend more. That means higher revenue per transaction and a bigger profit margin.

• More Customer Value: AOV is a key ingredient in calculating Customer Lifetime Value (CLV) – the total revenue you can expect from a single customer over their lifetime with your brand. When customers spend more per order (higher AOV), their overall value to your business increases, setting up more profit.
• Work Smarter Not Harder: It’s often more cost effective to increase AOV than to get new customers. By focusing on strategies that encourage bigger purchases, you can make your marketing work harder and get more bang for your buck.
• Fuel Growth & Sustainability: More AOV means more revenue coming in, which you can then reinvest back into your business to fuel growth, improve your offerings and ensure long term sustainability.
• Clearer Financials: AOV is a key metric to measure the profitability of each customer, so you can make informed decisions for marketing, sales and overall business strategy.

What Affects AOV?

Before you can increase your average order value (AOV) you need to know why it’s currently at what it is. AOV is influenced by many factors so you need to identify the culprits. Consider these:

• Pricing Strategy: Perceived value is key. Are your prices affordable, premium or somewhere in between? That perception directly impacts how much customers will spend.
• Customer Base: Know your audience. Demographics like income and psychographics like values play a big role in purchasing behavior and order size.
• Reputation: Trust is a powerful motivator. Repeat customers, recommendations and positive reviews all contribute to higher AOV.
• Messaging: Clearly communicate the value of your products and the essence of your brand and purchasing decisions will be made.
• Store Layout (Online & Offline): Just like physical stores are strategically designed, your online store’s layout and user experience can impact spending.
• Shipping Options: Shipping costs can be a double edged sword. Free or strategically incentivized shipping can increase AOV but high costs especially for international orders can deter larger purchases.
• These are just some of the factors. Conduct customer research, both quantitative and qualitative to identify the specific pain points that’s hurting your AOV so you can address them strategically.

10+ Key Strategies For Increasing AOV On Shopify Store

With a clear target AOV in mind, let’s explore actionable strategies to help you achieve it:

1. Cross-Selling and Upselling

Upselling and cross-selling are powerful tactics for boosting your Shopify average order value (AOV). The upselling method encourages the customer to purchase a product that is either higher in price or is an upgraded version of the one he or she was initially planning to purchase.

For example: If a customer is looking to possibly buy a basic laptop, you could recommend the premium version with its appealing features and offer some discount or benefits to motivate the purchase. This style of selling promotes increased expenditure above what the customer had originally planned on buying.

Cross-selling is when you recommend products that are more of a complement to build upon the purchase the customer has already made. For example, you could offer socks for sale at a discount to someone buying a pair of shoes. Combining upselling and cross-selling to achieve an improved AOV can go a long way.

2. Free Shipping and Express Delivery

Free shipping can be an effective means of increasing average order value (AOV). Here’s how to go about it:

• Threshold for Free Shipping- Decide the amount that a customer needs to spend to enjoy free shipping. For example, where the average order value is currently $100, the threshold could be set at something like $130.
• Free shipping on orders above a certain value- this would encourage customers to increase spending in order to qualify for free shipping.
• Notify Customers About the Offer: Notify customers regarding the amount that they are supposed to spend otherwise not getting free shipping.

3. Limited-Time Offers

Limited-time promotions are the best way to increase Average Order Value (AOV) on your Shopify store. Here are ways to execute them:

Create Urgency and Scarcity:

• Deadline: “Offer ends in 24 hours!” or “Last chance to save!” works very well to instill urgency and prompt action. Further sustenance could be provided with a countdown timer on your site.
• Limited stock: Statements such as “While supplies last” and “Only 100 available” entice customers to come buy right now before the product runs out. Be sincere with your scarcity claims; do not artificially enforce them.

Give Great Discounts and Bundles:

• Percentage discount: Straightforward approach, 20% off all orders over $100. It encourages higher buying amounts directly.
• Dollar-off discount: Off work better on certain price points, “$15 off your next purchase of $75 or more“.
• Bundle deals: Discount related products bought together. “Buy the sweater and get the matching scarf for 50% off“. This gets the customer to add more items to their cart.
• Free gift with purchase: Free gift on spending certain amounts. More value creates a strong incentive.

4. Product Bundling

Bundling lets the customers buy goods from related categories together, usually at a discount, allowing maximum convenience, and much appreciated value-adding offers.

This gives room not only for revenue generation but also provides maximum shared shopping experience for the customers as everything they need can be bought in a convenient package. Following are the ways to make bundling operate successfully:

• Buy Complementary Products: Bundle items should naturally pair together. These items need to make sense to the customer when offered as a pairing purchase instead of buying their separate goods
• Bundle Price: The price must be attractive in the bundle deal to give a feeling of a good bargain. To bolster this, exclusive promotions or discounts on bundles can be offered.
• Communication: Explain the value of the bundle through awareness of its convenience and savings.

5. Optimize Product Pages

Another way to increase your Shopify AOV is to optimize your product pages. Well designed product pages will make customers add more to cart.

For example an apparel store could create collections for coordinated outfits, like tops and bottoms or shoes and accessories. High quality visuals and product descriptions will encourage customers to buy more from one page.

To do this:

• Detailed Product Descriptions: Give customers all the information they need to make an informed decision.
• High Quality Images: Use plenty of images to show the product from different angles so customers can see it before they buy.
• Related Product Suggestions: Add related products on each page. Suggesting complementary products will make customers add more to cart.
• Personalised Recommendations: Consider suggesting products based on past purchases or popular products among similar customers for a more personal experience.

Also Shopify store owners can use BSS Product Options, Variant. This is a great way to optimize the product page as it saves time to implement the strategy.

6. Use Gift Cards

Offering such gift cards as an incentive to purchase attracts the customers towards meeting higher spending thresholds such as including in their offer a bonus gift card along with at least a minimum spending. Gift card sales always create a buzz with holiday promotions, helping draw in new customers while also increasing revenue.

Gift cards can also be used in a shop by owners in returns and exchanges encouraging customers to spend their credits within your store. Such a great way is tracking gift card sales, redemption rates, and AOV of gift card purchases, which allows you to evaluate and improve your gift card strategies for further maximizing their business impact.

7. Implement First Time Offers

For new brands where most customers are first time visitors, getting repeat business is key to building a loyal customer base. Offering deals like one time discounts for buying multiple units of a popular product or creating exclusive product bundles can be super effective.

These tactics encourage customers to add more to their initial order which not only increases average order value (AOV) but also increases the chance of a repeat purchase.

When a customer buys multiple items they become more invested in your brand and are more likely to come back for future purchases especially if their first experience was positive. This initial multi-item purchase lays the foundation for a stronger customer relationship and long term growth.

8. Set up a Customer Loyalty Program

Boost your Shopify average order value through a customer loyalty program. These programs offer rewards, incentives and discounts to encourage repeat business and increased spending per visit. A common strategy is to award points for purchases redeemable for products or services. Shopify store owners can set this up through the BLOY Loyalty Program & Rewards app. Try it out now!

When designing your program, think about the reward structure carefully. Offer valuable rewards to keep customers engaged. Tiered rewards where higher spending levels unlock better benefits are super effective. This encourages customers to spend more to reach the next tier, which increases purchase frequency and average order value.

9. Optimize Checkout Process

Pre-Checkout:

• Personalize the homepage banner with exciting promotions and messages relevant to the customer.
• Personalize and add site-wide personalization for all customers to be able to enjoy a customized shopping experience.

Checkout:

• Clearly communicate the shipping information together with the estimated delivery times so that customers may minimize cart abandonment.

Post-Checkout:

• Use pop-ups to show high-value add-on offers that entice consumers to premium upgrades at reasonable rates.

10. Return or Refund Policy

A return and refund policy can really boost customer confidence and sales. By having a hassle free return process you show you stand behind your products. This can be achieved by allowing customers to:

• Return the product for a full refund.
• Exchange the product for a different item.

Make sure to set a timeframe for returns and refunds so you can manage expectations. This must be clearly stated on your website and checkout page. Highlighting your return and refund policy not only encourages more sales but also shows customers the value they get for their money so they can shop with confidence knowing they can return if needed.

11. Live Chat Support for Quick Queries

Live chat can increase your Shopify store’s average order value (AOV) by addressing customer hesitation and objections in real time. Agents can answer product questions, clarify shipping and return policies, and explain payment options to reduce cart abandonment.

Live chat also enables personalized recommendations through upselling, cross-selling and product bundling to encourage customers to add more to their cart. By engaging with visitors and offering tailored help, live chat creates a seamless shopping experience.

Bonus Tips for Successful AOV Strategies

Upsell and Cross-sell: We’ve covered many strategies so don’t over do it. A/B test different placements and frequency to find the sweet spot. Be careful of pop-ups and CTAs that look spammy or don’t fit your brand.

Try Various AOV Strategies: The above ideas are a good start but continuous testing is key. Consider using live chat for personalized recommendations or offering future purchase coupons for reaching specific spend thresholds.

Track Beyond AOV: AOV shouldn’t be your only focus. Keep an eye on these important metrics:

• Conversion Rate: Increasing AOV shouldn’t come at the cost of conversions. Aggressive upselling for example might scare off potential customers.
• Cost Per Conversion: Balance AOV growth with managing acquisition cost. Make sure your increased revenue outweighs the cost of acquiring customers.
• Lifetime Value (LTV): A higher AOV is good only if it doesn’t harm customer retention. A short term AOV boost might decrease LTV if customers don’t come back.
• Test One AOV Method at a Time: Don’t try to do multiple things at once. Isolate your tests so you can see what’s working and what’s not, and don’t waste your time.

Wrapping Up

So, increasing your Shopify store’s Average Order Value (AOV) is key to making more money. By combining the strategies above (from upselling and cross-selling to personalized recommendations and shipping thresholds) you can get customers to spend more per order. Remember to look at your data, test different approaches and prioritize great customer service to boost your AOV and grow your business. Thanks for reading!

FAQs – How To Increase AOV on Your Shopify Store

1. Which strategies work for my store?

The best strategies are for your products, audience and brand. Analyze your existing sales data to see what products are selling and what customers are buying together. A/B test different strategies to see what works for your store.

2. How do I upsell and cross-sell properly?

Upsell and cross-sell should be relevant and not pushy. Offer suggestions that actually complement the customer’s purchase. Use clear and concise language and highlight the benefits of the extra items.

3. How do I track my AOV and measure success?

Shopify has analytics tools to track your AOV over time. Monitor your AOV regularly and analyze the results of different strategies to see what’s working and what’s not.

4. What are the common mistakes to avoid when increasing AOV?

• Being too pushy with upsells and cross-sells.
• Offering irrelevant product suggestions.
• Setting free shipping thresholds too high or too low.
• Ignoring customer service.
• Not tracking and measuring results.