It is easy to get caught up in chasing new customers as the primary means of growing revenue. However, customer acquisition costs are rising, and the opportunity to maximise revenue from the existing customer base is often overlooked. By increasing the value of each sale, we can drive higher profitability without the continued expense of acquiring new customers.
Customer Acquisition is Expensive, and Only Getting Costlier
The cost of acquiring new customers has skyrocketed due to increased competition and rising ad costs. Inevitably, we are now paying more than ever for each new visitor, making it essential to extract as much value as possible from existing traffic. This is where an effective Average Order Value improvement strategy comes into play.
Increasing Price Isn’t Just How You Improve Average Order Value
A common misconception is that raising prices is the most direct way to increase AOV. While pricing adjustments can play a role, they are not always viable. Instead, we should focus on strategic ways to encourage customers to spend more per transaction without negatively impacting conversion rates.
How We’d Do This
- Cross-Category Selling
By strategically promoting complementary products across different categories, such as clothing and accessories or cookware and utensils, we can increase the average cart size. Leveraging email marketing, on-site product recommendations and social media ads.
- Bundling
Creating bundles of complementary products can incentivise customers to purchase more in a single transaction. This not only increases order value but also improves the perceived value of the purchase.
- Shipping Thresholds
Free shipping is a powerful incentive. Setting a minimum order value for free shipping can encourage customers to add more items to their cart, thereby qualifying for the offer and effectively increasing the average order value (AOV) while enhancing customer satisfaction.
- Gift with Purchase (GWP) Minimums
Offering a free gift for orders above a certain threshold encourages customers to spend more to unlock the extra value, and it is an easy way to put new ‘tester’ products in the hands of customers to create awareness around them.
Why AOV Should Be a Core Growth Strategy
By focusing on AOV, brands can achieve sustainable growth without the relentless pressure of constantly acquiring new customers. Here’s why it should be a key priority:
- Higher Profitability – Since acquisition costs remain fixed, increasing AOV leads to greater profit margins and improved customer lifetime value.
- Maximised Revenue from Customers Already Paid to Acquire – Brands have already invested in attracting their audience; optimising their spending per visit ensures a higher return on that investment.
Ultimately, brands that prioritise AOV strategies can enjoy increased profitability, stronger customer relationships, and a more efficient path to growth. Instead of solely focusing on traffic and conversions, our mindset should also be about maximising the value of every customer transaction.
Ready to Increase Your AOV? Let’s Make Every Transaction Count
Maximising average order value isn’t just a nice-to-have. It’s a smarter, more efficient way to grow your revenue and profitability. At Return, we help eCommerce brands unlock growth through tailored AOV strategies that are built around customer behaviour, data, and proven performance tactics.
Whether you’re looking to implement bundling, cross-sell automation, or optimise your onsite experience, we can help you get more from every sale.
Call us on 0161 533 2790 or get in touch to book an AOV performance review with one of our specialists.