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Average Order Value: 6 Highly-Effective Tips

Average Order Value: 6 Highly-Effective Tips

The Average Order Value (AOV) is the average money amount that a customer spends an order on your Prestashop website with you.

With the conversion rate (CR) & revenue per visit (RPP), the average order value is the most important value that an online store based on Prestashop must increase to be profitable.

Because increasing AOV is the easiest way to increase profits, merchants need to try to improve it first, which is the process of making more money out of each customer.

What you have : You launch an eCommerce business to consistently market and sell your products. You try many ways to get more traffic: spending thousands of dollars on Google Ads or Facebook Ads, focus much of your energy on writing articles, and optimizing your website.

In fact : more traffic does not equal more success.

Increasing AOV does not cost money, but increasing traffic does. Encourage your customers to buy more expensive products and more products!

You know What Average Order Value means , and the next question is How to calculate AOV and especially How to increase the average order value?

You will learn about:

I. How to Calculate the Average Order Value

Here is the simple formula to calculate the average order value: Average Order Value = Total Revenue / Number of orders.

Calculate the Average Order Value

Let's look at a hypothetical situation in which Carol, a beautiful woman from Hanoi, spent £6,000 on a total of 3 orders. This means that, on average, Carol spent £2000 for each purchase from your store.

Another example: let’s say that in the day of the week - Monday, if you have a total of 2000 orders and your site's sales were £100,000, that meaning the AOV for Monday is £50.

II. 6 Highly-Effective Tips to Increase AOV

Here is the most important question: How to increase Average Order Value?

There are 6 tips that may increase your average order value, and they are essentially different ways to get your customers to checkout with larger carts.

  1. Upsell or Cross-sell to Increase Basket Size
  2. Setup Quantity Discounts
  3. Make Better Product Recommendations
  4. Next Order Coupon
  5. Set Order Minimums for Free Shipping
  6. Sell More to Loyalty Customer.

1. Upsell or Cross-sell to Increase Basket Size

Cross-selling is when you invite customers to buy a related or a complementary product to make a profitable sale, in contrast, upselling is when you promote the more expensive items or other add-ons. They are pretty magical. They both focus on providing additional value to customers.

Here’s how Jimmy (Vietnam) uses Onpage Cross-selling module to deploy a cross-sell tactic on his Prestashop website. This tip increases the AOV up to 15%.


2. Setup Quantity Discounts

Setting up a quantity discount is easy on Prestashop. Quantity Discounts (Volume-based pricing) also is a very handy tip. You could see it not only from the physical store but also from the online store. A customer buys a lot at once to get a lower price per unit.

Might someone be tempted by an offer for 3 snack bags for the price of 1. £5 each or 3 for £10?

First, quantity discounts help you to close your first deal. And because you continuously want to beat the competition, you want a specific customer who seeks the lowest price, this is an excellent way to go to get the customer and a large order – for a smaller margin.

It is a strategy that provides discounts for purchasing a product or service in high volumes.

Quantity discounts

There are many different formulas companies use to promote buying larger quantities.

For example, you could offer 5% off on orders over £100 or 10% on orders over £200. This could be either a percentage-based discount or a monetary discount.

You should create some quantity discounts for Manufacturer Specific Price Lists:

Quantity discounts formula

By using SOO Automatic Cart Rules module, you can not only create the quantity discounts but also show the promotion message on the product page, with a timer countdown to make it obvious that you're offering the quantity discounts.

Perfect your volume-based pricing strategy to make it profitable for every single deal.

3. Make Better Product Recommendations

Shows the smartest product recommendations to your product pages or checkout page.

You can sell some slow-moving stock, provide recommendations based on attributes and price of the product the customer has chosen or your own business priorities.

Product Recommendations

4. Next Order Coupon

This unique way of after-sales marketing will give your customers with dynamically generated coupon codes while they place the orders.

By this way, you encourage them to buy more by providing offer codes to their next order.

SOO Automatic Cart Rules module will allows you to define coupon amounts as a percentage of the order that triggers the coupon or when the voucher will be sent: while a customer places an order or after order completed.

Next Order Coupon

5. Set Order Minimums for Free Shipping

You can also increase the average transaction value by incentivizing customers to spend a minimum amount for free shipping.

Your offers should be shown on the product page or checkout page to make sure your customers to think about adding some additional products to meet the condition. For example, in offers free shipping for all orders over £100 or only offering free shipping for certain products, which is easy to set up in Prestashop with SOO Automatic Cart Rules module.

Free Shipping

6. Sell more to loyalty customer

Creating a customer loyalty program helps you increase the average order value and motivate your customers to keep coming back to your online store.

Loyalty customers spend 70% more than new customers as a result of they know your brand and believe in you.

And last but not least: They tell their friends regarding positive experiences. Word-of-mouth marketing is simpler at driving new customers than advertising.

Loyalty customer

New groups for loyalty customer

Create new groups: Back Office ->Shop Parameters ->Customer Settings->Groups.
You might want to setup a discount for this group, but we do not recommend use this option because it does not make a profitable sale.
On the next step, we will use SOO Automatic Cart Rules to reward loyal customers by offering cumulative discounts on selected lines or giving away free items with multiple purchases for a limited time.

Select customers for these group

Option A: Select some specific customers based on their purchase history.

Option B - the better way: Sell the membership subscriptions and select these customers who bought the subscriptions into the loyalty customer groups.

SOO Paypal Subscriptions & Recurring Payment module will helps you power a subscription business on your Prestashop website for secondly.

Reward Loyalty Customers

Now you have a list of the most valuable customers. Give them some best offers, and you'll be able to expect to visualize the AOV increase considerably. SOO Automatic Cart Rules allows you to apply the Volume-based pricing for customer groups.

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