Increase Your Average Order Value for Your Magento Store
Trying to bring in new customers to your eCommerce business may get a little pricy. Increasing the Average Order Value per customer is a more efficient way of increasing your revenue – you may get less traffic to your site, but that traffic would be worth more than if plenty of people came to your site but few buying things. It’s kind of like the the 80/20 principle of economics. 80% of the work being done is done by 20% of the people. This meaning that majority of your profit will most likely come from the existing clients you have now so it’s really beneficial to spend extra time paying attention to them. There are a few ways to help increase your Average Order Value and make your business flourish, and I cover a few of them below.
The first one is product bundling, which is when you put a primary product, like a gaming system, and add accessories, like games and remotes. It helps personalize the experience for the customer. Some businesses allow the customer to pick out specifically what they want to have in their bundle. Even just the idea having everything bundled together may cause the customer to want to buy it because they think it’s a great deal.
The next thing you can do is up-sell and cross-sell. Surely if customers want one product, they will want a product that compliments it! Customers could even want a bigger or better product in that category, but a customer may not know a bigger and better version exists until you show them. When customers are on your website, you can try out these two different methods. The first one is cross-selling, which is when you show items that are related to the one that they are viewing. Showing cross-sell products makes the experience more personal for the customer because it shows that you are paying attention to what they are shopping for and want to offer up other suggestions. Another action is up-selling, which is when you suggest a bigger or more expensive version of what the customer is viewing. Remember, the customer is going to your site to buy things, so take advantage of that!
You can also entice your customers to come back by giving the rewards. You ask them to sign up to send them discounts or promotions for spending more or for being a frequent shopper. You can also give them reward points for spending enough money with you and they can use those for other products. With customer rewards, the guest feels special for buying products from your business. If you don’t have some sort of customer loyalty program implemented to your site, we definitely suggest it, as a loyalty program definitely helps with customer retention and increased revenue.
Customers just want to feel like they are appreciated and heard. The best way to do this is by personalizing the experience and recommending and recognizing what the shopper is looking for. When customers are shopping, it’s easy to tell what they are looking for by what they are viewing. Sometimes, customers may not know what they want. It’s always good to help them in the right direction by recommending things that they might like. You can even personalize the experience for them and have them coming back by personalizing the welcome banner with their name or by giving them specific coupons or promotions for things that you think they might want due to past shopping trips.
Finally, make it easy for customers to return things. Customers may not even make returns often, but just knowing that the option is accessible will make your customers want to purchase more – a good return policy and a functioning return system indicates that you’re conscious about your customers and are looking out for their needs. Make sure to include the return policy where it’s visible and easy to find.
Magento made a really cool eBook over increasing Average Order Cost that covers each of these points in more detail, so if any of the above peaked your interest, we suggest giving the eBook a read-through. Additionally, we’re available to help you with any questions you might have about the above, as we’ve implemented and consulted on these optimizations quite a few times in the past. Don’t hesitate to call us at (214) 810-5005 or email us at firstname.lastname@example.org!