It takes money to make money, right? If you want to drive up your sales then you have to make big investments in customer acquisition, traditional advertising or lead generation. That’s just business school 101.
But what if that’s not true?
What if there’s another way to increase your sales by adapting a few low-cost ideas such as increasing your average order value (AOV)?
AOV is a measurement of how much money your customers spend per order and it’s an often-overlooked way of pushing up your earnings without needing to make a big spend first.
That’s because convincing your existing customers to buy more, can be a more cost-effective strategy than acquiring new ones.
These are some of the most effective ways to drive up your AOV.
Set Free Shipping Minimums
Amazon has conditioned us to expect free shipping on everything from $2,000 TVs to $2 toothbrushes, but that’s not a realistic option for every brand. However, setting a minimum spend for free shipping can compel your customers to purchase just a bit more to get their order total over the top.
The minimum also plays into buyer psychology by making them feel like they’re getting a deal by spending more.
You should set your prices strategically. Look at your best-selling items and set your minimum just a little bit higher to give your customers an incentive to spend even more.
Cross-sell Complimentary Products
If your customer is buying a dress, then they might also be interested in the heels that go with it. Or if they need pens, then they might also want a notebook. Take advantage of the fact that your customer is already in a buying frame of mind and make sure that every time they click on an item or place one in their cart, they automatically get suggestions for other products that would go well alongside it.
Examine your own sales data to see which products are most commonly bought together and then generate suggestions based on that information.
Establish a Flexible Return Policy
Consumers will spend more when they are confident that they can easily return the items that they don’t want. A study by UPS found that 73% of shoppers are more likely to buy again from companies that have generous return policies and 68% said that return policies shape their overall perception of a retailer.
Consumers are willing to spend more when they’re offered generous return policies such as free shipping on returns, longer return-time windows, flexible return options and a transparent return policy.
Increasing your sales is about much more than acquiring new customers or offering deals. Finding ways to sell more to your existing customers is a smart play because the cost to you is low and you’re working with someone who is already committed to buying and just needs a little push to spend a bit more.