When looking for ways to grow your bottom line, finding new customers comes to mind. While this is a worthy endeavor, it can come with significant marketing costs and effort. Another option to look into is increasing your average order value (AOV). By learning how to increase average order value, you can maximize the value of each purchase while also enhancing customer satisfaction.
This is exactly what we’ll dive into today. In this comprehensive guide, we’ll cover effective ways how to increase average order values in wholesale. By the end of this article, you’ll have a toolkit of proven strategies to boost your AOV!
Ready to learn? Let’s dive right in.
What Is Average Order Value?
Average order value or AOV measures the average amount your customers spend for every order placed on your eCommerce website. It can be calculated using the formula:
AOV = Total revenue / Number of orders
Let’s say your WooCommerce store generated a total revenue of $14,500 in a month from 160 orders. In this case, your AOV would be $90.63.
Average order values vary from industry to industry, influenced by factors such as product type and customer behavior. For instance, industries such as luxury and jewelry sectors typically enjoy higher AOVs, averaging at around $426. On the other hand, the average order value in eCommerce amounts to approximately $128.34.
Why learn how to increase average order values?
Learning how to increase your store’s average order values is crucial for many reasons. For one, it allows you to increase your business’ revenue. Simply put – when you encourage more customers to “spend more” per order, you maximize the value of each purchase and boost your bottom line.
This strategy also allows you to make the most of your existing customer base. This is more cost-effective than acquiring new customers, which often entails significant expenses on advertising and market research.
Lastly, it helps you enhance customer satisfaction. Strategies to increase AOV include offering promotions that give shoppers more value, including personalized product recommendations, incentives for larger purchases, and more. These strategies not only encourage customers to buy more – they also provide a more tailored and satisfying purchase experience.
How To Increase Average Order Value (7 Effective Ways)
Increasing your store’s average order value can work wonders for your business. In this section, we’ll explore 7 effective ways you can increase AOV for your store.
1. Use strategic upselling and cross-selling
Upselling and cross-selling are among the most popular strategies to increase AOV – they’re highly effective when done right.
Strategic upselling entails promoting a more “premium” or expensive version of the product they’re buying. The key is to highlight the additional benefits and value of the suggested product to encourage customers to upgrade their purchase.
Cross-selling, on the other hand, involves suggesting related products during the purchase. This could be add-ons, complementary accessories, or other related items. For instance, if a wholesale customer is stocking kitchen knives for their business, you can suggest complementary items such as cutting boards or knife block sets.
Most e-commerce websites allow you to easily add upsells and cross-sells for your product listings. WooCommerce, for instance, allows you to modify “Linked Products” in your Product settings page, where you can add upsells and cross-sells:
2. Implement tiered pricing
Tiered pricing is when you set different price levels depending on the quantity purchased – the larger the customer’s order, the bigger the discount they get. It’s a simple yet effective way to encourage customers to buy more. This strategy is essential in wholesale and a key tactic in learning how to increase average order value.
You can showcase the benefits of buying more to your customers by including a tiered pricing table on your product pages. In WooCommerce, you can easily accomplish this using plugins like Wholesale Prices Premium. With this powerful plugin, you can set tiered pricing based on order quantity and show them on each product:
3. Consider product bundling
Product bundling groups related items together, selling them at a discounted price than if these items were bought individually. By doing so, you increase the perceived value of the purchase. And, when customers perceive that they’re getting a better deal, they’re more likely to spend more. This is particularly true in wholesale, where bulk buyers are always looking for the best deals.
There are several ways you can implement product bundling in your wholesale strategy, depending on your industry or the nature of the products you sell. For example, you can experiment with creating “theme bundles” based on customer needs – if you’re a supplier of office essentials, you can create wholesale bundles for office essentials or back-to-school supplies.
4. Create a loyalty program
Learning how to increase average order value means finding ways to encourage customers to purchase more. One effective way to do that is by creating a loyalty program that rewards them for every order. Thankfully, there are several tools available that can help you set this up easily.
WooCommerce store owners, for instance, can leverage plugins like WooCommerce Loyalty Program to create a loyalty program that rewards customers with points for each order. This plugin simplifies setting up and managing a loyalty program with features like point earnings, redemption, and full reporting.
5. Set free shipping thresholds
Another smart way to increase AOV for your store is to set free shipping thresholds. This means setting a minimum purchase amount before customers qualify for free shipping. It’s highly effective, with 58% of buyers adding items to their carts to qualify for free shipping, according to an industry report.
When setting a free shipping threshold, analyze your current average order values. For instance, if your current AOV is $135 for wholesale orders, consider setting a higher threshold of $150. his will help you maximize the value of each order and encourage customers to add more items to their cart.
6. Create time-sensitive offers
When talking about how to increase average order value, we can’t miss talking about leveraging time-sensitive deals to your advantage! Think flash sales, limited-time discounts, or exclusive offers only available for a certain period. These offers create a sense of urgency, encouraging customers to add more to their carts to take advantage of the deal. It’s also an effective way to boost sales during low seasons or clear out excess inventory.
Our plugin Wholesale Prices Premium allows you to set wholesale sale prices and set your desired duration. This makes it easier for you to manage time-sensitive wholesale deals on your WooCommerce store.
7. Offer personalized product recommendations
Use the wealth of information you already have to improve the purchase experience for your customers and increase your AOV. Look into your customer’s order history and tailor product recommendations based on their preferences. By personalizing your offers, you engage your customers and encourage them to continue shopping.
Leverage the power of post-purchase offers when making recommendations. They are most excited right after a successful purchase. However, be mindful of the timing as well – make sure to space out your recommendations to maintain interest without appearing pushy or overly selly.
Conclusion
Increasing your business’ average order values is a powerful way to give your bottom line a boost. In this article, we walked you through seven actionable strategies to help you enhance your AOV. These strategies not only encourage customers to spend more – they also improve the overall shopping experience for your customers as they get access to the best deals.
To summarize, let’s review these strategies below:
- Use strategic upselling and cross-selling
- Implement tiered pricing
- Consider product bundling
- Create a loyalty program
- Set free shipping thresholds
- Create time-sensitive offers
- Offer personalized product recommendations
WooCommerce wholesalers can leverage plugins like Wholesale Suite to make implementing these strategies a breeze. With our comprehensive toolkit, you can set tiered pricing easily, set up bulk order forms, capture wholesale leads, and offer flexible payment terms to your customers.
Do you have any questions about how to increase average order value? Let us know in the comments section below. 😊
