There are multiple ways to grow your sales. Unfortunately, not enough eCommerce stores focus on average order value as a lever to increase revenue.
Multiplying revenue requires you to work across growing your customer base, increasing your average order, and increasing your repeat purchases.
While we’ve covered conversion optimization and retention marketing in the past, this guide will focus on average order value.
What is Average Order Value (AOV)
Definition: Average Order Value (AOV) measures the average revenue generated in a single transaction. To calculate AOV, you need three inputs.
First, what timeframe are you measuring your AOV. Second, what is the total amount of revenue generated during your timeframe. Finally, count the total number of orders during the same time.
Average Order Value = Total Revenue / # of Orders
How to Increase Average Order Value (AOV)
Luckily, increases the average order value is a long-standing problem in retail. There are many best-practice strategies and tactics used to routinely increase this conversion metric.
How Fashion Nova Maximizes AOV for Every Shopper
We've covered how Fashion Nova maximizes conversions with browse abandonment before.
Here, I want to tear down an entire customer journey to see how they push the average order value up for each customer.
1. Using Onsite Personalization to Create Rewards for Order Minimums
Fashion Nova uses a multitude of incentives to drive AOV and conversions.
Above we see their homepage. They use various advanced eCommerce personalization tactics to present the right offer to the right customer.
Two message bars are placed, one above and one below the main navigation bar. Both emphasize free shipping on orders over $75.
Free shipping is an optimal incentive for a few reasons. First, it is a primary reason for shopping cart abandonment. Second, it is a direct financial incentive without discounting your product.
Dynamic Onsite Personalization: Create message bar offers just like Fashion Nova with Barilliance's Onsite Personalization. Request a demo here.
2. Creating Site-Wide Campaigns to Increase AOV
Fashion Nova actively creates campaigns to multiply the amount customers spend.
These types of campaigns are common - and include ideas such as buy one get one, spending thresholds, and more. Here, Fashion Nova uses a ladder approach, establishing multiple thresholds in $25 increments.
3. Creating Dynamic Bundles with Shoppable "Looks"
Bundles are fantastic at eliminating the "Paradox of Choice" and leveraging authority to increase the average order value.
Here, Fashion Nova combines products across categories to create a complete look. Then, with some great content personalization on the product page, they are able to showcase with imagery how the outfit looks together.
Finally, these products are combined into a simple bundle that visitors can add to their cart in one click.
3. Using Personalized Recommendations to Surface Like Products
As customers shop, they reveal what types of products they are interested in.
You can use this information to create informed, personalized product recommendations.
Fashion Nova actually inserts three product recommendation widgets on their product pages. The fist dynamically inserts related products based on style and category - in this case, items similar to their canopy jean.
This tactic is not only great for ensuring a sale, but it also presents shoppers with items they are likely to buy in addition to the product they are looking at increasing AOV.
4. Using Personalized Recommendations to Offer Complimentary Products
The second product recommendation widget Fashion Nova creates are "Suggested Add-Ons".
The items suggested all compliment the current product, and are often popular accessaries bought alongside the viewed product or curated looks.
Increase Your AOV with Effective Product Recommendations: Get dynamic, personalized product recommendations that adapt in real-time to customer behavior. Request Here.
Increasing AOV is a central component to multiplying revenue.
Personalization software, advanced product recommendations, and merchandizing campaigns are effective tools you can use.
If you'd like to learn more about how to select a personalization partner, click here. Otherwise, request a demo to see how Barilliance can help you increase AOV.