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For several years, marketers have thought that success is attained when they gain more customers to place more orders. Yet, things started to change, and the power of already existing customers to a business became evident.
Online businesses now understand the importance of generating the highest revenues with the minimum cost. You might wonder how this can be done.
Well, we can tell you that by focusing on your current customers, you can generate higher sales and spend less on your marketing efforts. Accordingly, more revenues with less cost.
In other words, the more money your current customers spend, the more revenue you will get.
Hence, a key metric you should always calculate is the average cart value, also known as the average order value.
Average cart value is the average amount of money customers spend on an order when shopping on your online store. Thus, it’s easy to calculate your average cart value by using the following formula:
Average cart value = Total revenues generated/ total number of sales
Therefore, it’s safe to say that the higher your average cart value, the higher your profitability, and the higher your ROI and ROAS.
As we realize the importance of average cart value, we will reveal the best tips to increase average cart value in your e-commerce.
So, prepare yourself and get ready.
Tips To Increase Average Cart Value
- Optimize Your Product Page
- Highlight The Best Selling Products
- Cross-sell And Up-Sell
- Offer Bundle Products
- Highlight Urgent Offers
- Use A Minimum Order Value
- Add A Clear And Flexible Return And Exchange Policy
- Create A Personalized Shopping Experience
- Set Up A Customer Loyalty Program
- Offer Buy Now, Pay Later Payment option
- Incorporate Live Chat Option
1- Optimize Your Product Page
Optimizing your product page is one of the key elements to increase average cart value. Thus, there are plenty of tactics you should follow to optimize your product page and maximize your benefits.
First of all, adding pictures and videos while providing detailed product descriptions is crucial. It makes shoppers less skeptical about your products and encourages them to add more products to their carts.
In addition, creating a mobile-friendly website while making it user-friendly improves user experience and inclines shoppers to purchase additional products, hence, increasing average cart value.
2- Highlight The Best Selling Products
Best-selling products and trending ones always grab the attention of online shoppers. And to be honest, this is exactly what you want as an e-commerce owner.
Best-selling products always resonate with customers. Therefore, you have to constantly highlight them, especially if they are discounted or on a flash sale.
Regardless of the product the customer is visiting your website to buy, the terms trending/bestselling with a discount will undoubtedly make them add more products to their carts.
As a result, this will increase the average cart value.
3- Cross-sell And Up-sell
A winning tip to increase average cart value is through cross-selling and up-selling, as there is no better time than now.
Cross-selling is done by offering complementary products to the already chosen item by the customer. For example, if a client is shopping for a dress, you can cross-sell by recommending a pair of shoes.
As for up-selling, you encourage customers to pay extra money for an upgraded version of their already chosen product. Accordingly, they increase their average cart value.
However, for this tip to be successful, you have to cross-sell and up-sell in a smart way. Do it when there is a chance, and not constantly become too pushy and just try to sell additional products.
Make sure that your cross-selling and up-selling are adding value to customers.
4- Offer Bundle Products
Bundling is always a successful strategy to increase average cart value. It makes customers feel they’re getting a better deal and saving extra cash.
All you have to do is combine the most related products together and sell them in a bundle at a discounted price. This makes shoppers willing to pay extra money to get a better deal. At the same time, you increase your average cart value.
As we talk about bundling, the first things that come to my mind are the bundles offered by Bath and Body Works. You visit their website intending to buy a certain product, yet you find yourself getting the whole bundle as buying each product separately will definitely cost more (I don’t know how they make this work every time).
5- Highlight Urgent Offers
Whenever it’s possible, we just love incorporating FOMO marketing.
It makes shoppers feel like if they don’t immediately place an order, they are missing out on a massive opportunity. Therefore, you can embark on the urgency tactic by creating limited-time offers.
As a result, you highlight an important aspect of FOMO marketing, which is urgency. This, in return, makes shoppers more inclined to seize the offer, which contributes to higher order/cart value.
6- Use a Minimum Order Value To Get Free Shipping
Customers admire free shipping. They feel like winning the lottery.
Hence, shoppers are ready to go the extra mile just to receive their products with free shipping. So, why not benefit from such an aspect of your e-commerce?
One way to increase the average cart value is by adding a minimum order value to get free shipping. This means that, for example, orders above 300$ are qualified for free shipping.
As a result, online shoppers will make sure their orders reach 300$ to get their orders shipped for free. This might include adding additional products to the cart just to reach the free shipping limit.
The thing is, you have to make sure that shoppers are aware of the free shipping verge. Thus, pop-up messages can occur to inform shoppers that they are close to free delivery. Hence, they become more encouraged to add additional items to qualify for free shipping.
We have to say, it’s definitely a win-win.
7- Add A Clear And Flexible Return And Exchange Policy
Image source: bigcommerce.comA key tip you should always incorporate in your e-commerce is creating a clear return and exchange policy.
Online shoppers always check for the return and exchange policy before placing an order. Therefore, your policy has to be clear for everyone. In addition, delivers a pleasant experience for shoppers who decide to return a product.
Just because they decided to return a product doesn’t make them an enemy of your business. You should deliver a pleasant experience as well to ensure that they come back for more purchases.
Repeated customers undoubtedly contribute to an increase in average cart value.
8- Create A Personalized Shopping Experience
By creating a personalized shopping experience, you are gathering customers' preferences and building on them.
This means monitoring their order history to offer a tailored shopping experience with personalized product recommendations. Yet, this requires a specialized marketing tool to handle it. Thus, we recommend checking Convertedin.
Convertedin offers customers relevant product recommendations based on their purchase history. In addition, it previews trending products to your customers.
As a result, a personalized product experience resonates with shoppers and encourages them to order more products, hence increasing the average cart value.
9- Set up a Customer Loyalty Program
Setting up a customer loyalty program is a favorable strategy to increase customer retention. And since we are talking about increasing the average cart value, a repeated customer is the one you should target.
Therefore, customer loyalty programs are your go-to.
By creating loyalty programs, customers receive points to be redeemed for discounts and offers. Hence, the more products they add to their carts, the more points they will receive and the higher the discounts.
So, simply put, in loyalty programs, customers keep on increasing their average cart value just to receive more discounts.
Again, it’s a win-win.
Also, it’s important to mention that customers subscribing to your loyalty programs are way cheaper to market to. So, add to the list of benefits, an increased ROAS.
10- Offer Buy Now, Pay Later Payment Options
Unless you are living under a rock, the global economic conditions are not highly performant. This is indeed reflected in customers’ shopping and paying patterns. The buy now pay later payment is getting more popular than ever.
Shoppers’ budget is highly linked to the amount of products they add to their carts. This means the lower the budget, the less the products added. Thus, to cope with customers’ low-budget issues, you can offer them a payment plan.
Hence, instead of paying a wholesome amount of money when purchasing, shoppers can pay in installments. This increases the average cart value as customers won’t be burdened with a large amount of money to be paid instantly.
11- Incorporate Live Chat Option
Including live chat in your online store is a winning tip to increase average cart value. It allows your online store to get over the drawbacks of online shopping by instantly responding to customers’ inquiries.
As a result, whenever a shopper has any question that stops him/her from pressing the buy now button, you are there to respond right away. Thus, it reduces abandoned products and builds trust to purchase by addressing any shoppers’ doubts.
Final Thoughts
The smartest thing any e-commerce can do is gain the highest revenue with the lowest cost. Therefore, building a base of loyal customers who continuously buy from your store is a vital aspect that should never be neglected.
So, there are no excuses as now you have 11 tips to increase average cart value that we are sure are gonna work for you.
Yet, we are saving the best for last with an extra winning tip just for you.
To ensure an accelerating performance for your e-commerce, you will need a marketing automation tool. Look no further; Convertedin is here for the rescue.
Convertedin is a marketing automation tool that offers a personalized product recommendation engine to deliver tailored product suggestions to customers. In addition, it customizes email marketing campaigns tailored for each activity to maximize your ROI.
Not to mention its auto-segmentation and dynamic ad automation to boost sales across various channels.
All of this and more with Convertedin. So, book your demo now!
