Many WooCommerce entrepreneurs think they must attract new customers to increase revenue. This isn’t true. Business owners can make more profit by using existing customers. How?
They just need to improve their average order value (AOV). The real challenge is how to increase average order value in WooCommerce store. Many store owners follow diverse tactics to raise AOV.
That said, this article will walk you through 20 techniques to increase average order value. Also, you’ll learn other factors regarding AOV. Let’s read.
What is the Average Order Value?
An average order value refers to the average amount of money a customer spends per order. It increases as the customer spends more money on an order. And the opposite occurs when a shopper spends less money per order.
So, if you sell high-priced items in your WooCommerce store, your average order value will be high. For your information, an average order value is different from revenue and profits. It’s just a method to measure what each customer spends on each order.
We believe you now clearly understand what an average order value is. Let’s learn how to calculate it.
How to Calculate Average Order Value
You might think that calculating average order value is difficult. It’s not. You just need to divide your total revenue over some time (e.g., a year) by the total number of orders. Here’s the math:
Average order value = Total revenue/total number of transactions
Let’s see an example. Imagine you want to calculate your average order value for December. You generated $20,000 through 100 sales. So, your AOV for December will be = $20,000 100 = $200. This is how you calculate average order value.
How to Increase Average Order Value In WooCommerce Store
This section will help you learn how to skyrocket your average order value by implementing a few strategies. Let’s get started.
1. Use Upsize
An upsize is a type of upsell that helps you increase the average transaction size. Upsizing an offer indicates you display a product’s larger variation on your WooCommerce store.
Suppose you sell soft drinks online. Your store has many small-sized drinks that frequently generate revenue. You introduce large-sized drinks at comparatively higher prices. As a result, you give customers different choices by upsizing a product.
If customers purchase that upsized product, your AOV will increase. Again, if they don’t buy the larger one, the smaller item can be even more appealing to shoppers. Thus, customers become likelier to purchase products, increasing the total number of transactions and your AOV.
2. Utilize Upselling Strategy
You can use the upselling strategy to increase your AOV. You can present an upsell page that provides a great deal when a customer purchases something on your WooCommerce store. For instance, if a shopper orders a book, you can offer an audio version of that book for an additional fee.
You can also offer complementary products/services, such as a gift card or a membership, to increase sales and average order value.
3. Create Urgency
It’s one of the easiest strategies for influencing customer behavior. Just by creating urgency among potential customers, you can increase sales. Run limited-time offers or introduce low-stock alerts to create urgency among your targeted audience.
When you put a product on a limited-time offer, that product becomes exclusive and draws immediate attention, leading to sales. If you can execute this strategy thoughtfully, it will turn hesitant visitors into confident buyers and increase your average order value.
4. Change Product Price
Changing product pricing is a powerful strategy for increasing average order value and boosting revenue. Imagine you run a subscription service with 500 subscribers paying $19.99 per month.
If you raise the price by $2 to $21.99, you can increase your monthly revenue by $1,000. Most of this additional revenue is profit since your service delivery costs remain the same.
To make the most of this approach, test small price increments to identify the optimal price point that maintains subscriber loyalty. You can also introduce tiered subscription plans or add-on features to encourage higher spending and increase your AOV.
5. Create Product Bundles
Product bundling is an effective way to boost average order value. It’s because you offer a unique package of items at a price that’s hard to compare elsewhere.
When you bundle multiple products into a new set, you make customers spend more than they might have otherwise. Besides, you make shoppers feel they’ve scored a great deal.
Consequently, you sell more items, generate more revenue, and increase your average order value. Thus, create product bundles to increase sales, revenue, and AOV.
6. Reward Customers for Spending More Money
This is a highly effective strategy for boosting average order value and improving conversion rates. The concept is simple: you need to encourage customers to spend more by offering rewards for exceeding a spending threshold.
Here’s how to implement it: First, calculate your current average order value. Next, set a target 15 to 20% higher than the current AOV. Finally, choose an appealing reward for customers who surpass this amount.
For instance, if your average order is $75, offer an enticing perk for customers who spend over $90.
Here are some reward ideas:
- A complimentary gift
- Access to an exclusive giveaway
- Enrollment in a premium membership or rewards club
- Free express shipping
7. Offer Free Shipping
Sometimes you can offer free shipping to increase sales and average order value. Allow customers to enjoy free shipping when they spend over a certain amount. You can determine that particular amount by evaluating your customers’ average order value.
Let’s say your average order value is $100 and your highest shipping fee is $25. Thus, encourage customers to spend over $125 to qualify for free shipping.
This threshold covers your highest shipping fee while incentivizing customers to spend slightly more than the average order value.
However, consider product size, weight, and pricing strategy to ensure this threshold aligns with your business goals and profitability.
8. Offer Memberships
We’ve already mentioned this strategy. You can promote a membership program on your checkout page and across your ecommerce website. Add this to every product page and highlight the value customers gain by joining.
Memberships boost customer lifetime value, retention, and average order value from the moment of sign-up. When customers enrol in a membership plan, you can frequently offer them exclusive discounts and benefits to encourage repeat purchases, increasing your AOV.
9. Offer Add-ons
Product add-ons are small additions to an item a customer is purchasing. These add-ons make a product appealing and more valuable. For example, a laptop might come with a protective sleeve or an extended battery pack.
The goal is for add-ons to increase the total order cost. Unlike bundles, which are pre-packaged sets of complementary products, add-ons are minor additions that directly enhance the main purchase.
You can include add-ons in your WooCommerce store. To add additional offerings to your products, you might use ShopBuilder and its Product Add-Ons module. This plugin and its diverse modules not only help you promote products with add-ons, but also let you create a high-converting WooCommerce store!
10. Use Live Chat Feature
Customers often hesitate to purchase a product and inquire before buying it. They can instantly reach out to you through the live chat feature and get their uncertainties or issues resolved through direct communication.
When prospects get an effective solution instantly, they develop a positive impression of your store and purchase products. Thus, live chat is a beneficial feature for any ecommerce store.
Consider including this feature in your WordPress shop. It’ll let you instantly address customer concerns, remove purchase barriers, boost conversion rates, and increase average order value.
11. Promote Gift Cards
Gift cards can significantly increase your average order value. How? When customers use a gift card, they treat it like “free money” and are more likely to buy higher-priced items or add extra products.
Besides, gift cards encourage customers to buy many items to avoid wasting any remaining gift card balance. When you include gift cards for selling, you get to attract new buyers looking for gift items. So, you get more customers and more sales!
That said, utilize gift cards to boost average order value. ShopBuilder’s Gift Card module makes creating gift cards on your WooCommerce store easy. For more information, read this article on how to create gift card in WooCommerce.
12. Offer a Partial Payment Plan
Sometimes, the price becomes a barrier to sales. Many people hold them back from purchasing high-priced items. Although they want those products, prospects can’t afford them right now.
However, such people become more likely to buy high-priced products when they notice they can pay the total price in installments. This flexibility reduces purchase hesitation and encourages larger transactions, especially for budget-conscious shoppers.
Thus, you should prioritize integrating a payment system that allows customers to pay partially and book products. With ShopBuilder’s Partial Pay module, you can easily add this system to your WooCommerce store.
13. Add Social Proof
Social proofs, such as customer reviews, ratings, user-generated content, and testimonials, enhance average order value. You may know that when shoppers see others praising products, they believe in their quality and add them to their cart.
Even positive reviews can get customers to buy high-priced products, increasing your overall revenue and average order value. Thus, include social proof across your website.
14. Optimize the Purchase Journey
Did you know that customers are more likely to purchase products and return for future purchases when they have a positive buying experience from a store? Thus, you must ensure customers can smoothly buy products on your WooCommerce store.
To do this, you can optimize your checkout page. You can remove unnecessary checkout fields using ShopBuilder’s Checkout Fields Editor. Or, you can integrate the multi-step checkout to break the buying process into manageable stages.
Besides, try including a mini cart to help impulse shoppers quickly add products without browsing different pages. By implementing these minor tweaks, you can enhance the user experience, customer satisfaction, conversion rates, and average order value.
15. Utilize Smart Coupons
Smart coupons are another effective way to increase sales, improve customer satisfaction, enhance average order value, and build brand loyalty. You can motivate customers to spend more by offering smart coupons like ‘buy one, get one’ (BOGO) or gifts.
👉Learn more about how to add discounts in WooCommerce
You can also promote behavior-based discounts through smart coupons. For instance, create exclusive deals for cart abandoners to reduce your cart abandonment rate. So, try using smart coupons. Check ShopBuilder’s Smart Coupons module to enable the smart coupon feature and leverage its benefits.
16. Recover Abandoned Carts
Abandoned cart recovery is a powerful strategy for increasing average order value. A study shows that the average cart abandonment rate reached over 70%. Recovering abandoned carts can improve sales and average order value.
To recover abandoned carts, you can follow a few strategies. For instance, you can send messages or emails to cart abandoners to remind and incentivize them to purchase.
You can offer discounts, free shipping, or limited-time deals to motivate shoppers to complete their purchases. Lastly, track the effectiveness of abandoned cart recovery efforts and optimize or change strategies if necessary.
17. Utilize Order Data
This strategy suggests using customer purchase history to identify their preferences. Then, utilize that order data to create marketing campaigns to promote products that align with your customers’ requirements. This targeted approach will help you produce a high average order value.
18. Down-sell Add-ons
Down-selling is another excellent approach for increasing the average order value. Down-selling means you offer customers a comparatively low-priced item once they buy a product.
For example, if you sell a product worth $80, you can offer customers a $30 item after they purchase the $80 product. This strategy boosts sales and AOV.
19. Work on the Above-the-Fold on Your Homepage
Above-the-fold content is the first visual contact a visitor has with a website. If you can use it to make a strong first impression, you can encourage visitors to explore your WooCommerce store further and buy products!
Thus, use above-the-fold to recommend best-selling products with great value. Also, showcase featured products alongside the best-selling ones. Refine your microcopy to attract visitors.
Last, display product categories based on popularity, and let prospects filter products by various attributes.
20. Perfect the Navigation
After working on your homepage above-the-fold, try perfecting your nav menu. Nobody likes visiting a confusing website, and visitors will immediately leave if your navigation bar is bad. So, fix it and don’t forget to include the following menus in the navigation menu:
- Best Sellers
- Top Product Categories
- Relevant Offers
- Search Icon
- Cart Icon
- Account Icon
This strategy can help you increase sales and average order value.
Quick Tip: Keep the bar clean with 4-5 icons or links to avoid clutter and make it sticky.
Why Should You Increase Your Average Order Value?
One of the prime reasons for increasing the AOV is to raise revenue without increasing marketing and sales costs. Other benefits are as follows:
Improved Profit Margins: Higher AOV often means customers are buying more items or higher-value products, which can improve profit margins, especially if fixed costs (e.g., shipping, processing) remain the same.
Maximizes Marketing ROI: When you increase AOV, you get more value from existing traffic and marketing campaigns.
Encourages Customer Loyalty: By aiming to increase AOV, you enhance customers’ shopping experience through diverse strategies and gain customer loyalty.
Reduces Dependency on Traffic Volume: Increasing AOV allows you to grow revenue with the same or fewer customers instead of relying on more site visitors.
These are the benefits and motivating factors to increase your average order value.
Frequently Asked Questions (FAQs)
What is the Difference Between Average Order Value and Average Purchase Value?
There’s no difference since both are the same thing, precisely metric. They represent the average revenue generated per transaction. Ecommerce store owners use them to track changes in revenue over time.
What Affects the Average Order Value?
Various factors can affect the average order value. For example, product pricing, customer demographics, and order frequency can influence AOV.
Is High AOV Good?
Of course, a high AOV is good for a business since it indicates great profit per transaction. If your store has a high AOV, it means customers are spending more on each order.
Now Increase Your WooCommerce Store AOV
Boosting AOV is an effective strategy for securing your WooCommerce store’s success. By applying methods like upselling, product bundling, free shipping, smart coupons, partial payment, and others discussed in this content, you can easily increase your average order value.
Follow these tactics to maximize ROI from existing traffic. We wish you the best of luck on your journey to improving sales and AOV.
