As we try to get past the dark days of the economic slump, retailers are tasked with finding more ways to optimize sales and maximize profits. So where does one begin?
While many retailers divert their attention to bringing in new customers, they overlook a valuable group that are already within reach…the consumers already shopping with them. These are the customers that are already interested in your products. So interested, that they have already taken the steps to locate it, find the appropriate size and color, and place it in their cart. So why not devote more attention to them and maximize their order size?
Here are five tips on how to improve average order value:
Drawing from search and purchase histories, retailers should personalize their recommendations to individual shoppers to better cater to their preferences. Customers are more likely to add onto their purchase when shown additional items consistent with their style or interests.
Retailers could also feature a sidebar that tells shoppers which items have been purchased together in the past. A “people who bought this also bought,” column could influence what a shopper might buy next, appealing to the human tendency to do what others have done before. Whether it be pairing red stilettos with a cheetah dress or grey pinstripes with a hot pink tie, knowing that someone has styled an outfit the same way might be the little push of reassurance one needs to take the plunge.
Check It Out After Check-Out
Offering items after check out only presents more opportunities for revenue. Since the customer has already sealed the deal and paid for their cart, showing them additional items can’t hurt. So adding a “Wait! Did you get a chance to see this?” section next to the “Thank you for shopping with us” can only boost your bottom line, not take away from it.
Stay Convenient and Bundle Up
Ever wonder why it’s cheaper to buy a bottle of shampoo paired with a bottle of conditioner instead of buying them separately? Retailers are using a strategy known as bundling. They tie two or more complementary items together and make each item cheaper than if sold individually — enticing customers to buy more. This tactic also attracts convenience customers who can simply grab-and-go and have everything they need without thinking twice about it.
Organize Quick Order
Encourage shoppers to stay in “shop mode” instead of “checkout mode” by setting up a quick order page on your online store. A quick order page contains items that fall under a specific category such as office supplies or printers and allows shoppers to add items to their cart without having to look at the product descriptions. Once again appealing to the convenience factor, shoppers can shop on impulse and add everything they want and more to their cart with only a few clicks.
Promotions Bring Profit
A time and again proven strategy, promotions and sales have been known to increase the size of a shopper’s bag. Retailers can customize promos toward a specific order or value to increase the order amount to one higher than their average. Offer a “Get 10% off with an order of $125 or more” to a customer checking out with $122 cart, and you urge them to go back and add that extra item that they’ve been eyeing. Markdowns could also help you eliminate accumulating items.
What are other ways to increase average order value?
Contributing Editor: Amanda Lin