As an ecommerce business owner, you're always looking for ways to grow your revenue. One way to do that is by increasing your average order size or average order value (AOV). But what exactly is AOV and how can you increase it? In this post, we'll answer the most popular questions about AOV and give you actionable tips to boost it.
Average order size or average order value (AOV) is the average amount of money a customer spends per transaction on your website. To calculate AOV, simply divide your total revenue by the number of orders. For example, if you made $10,000 in revenue from 100 orders, your AOV would be $100.
Increasing your AOV can lead to higher revenue and profits. By encouraging customers to spend more per transaction, you can offset any increase in marketing or operating costs. Additionally, a higher AOV can indicate that your customers are satisfied with their experience on your website and are more likely to return in the future.
There are several ways to increase your AOV:
Increasing your AOV can indirectly impact your SEO efforts. A higher AOV can lead to higher revenue and profits, which can be reinvested into your marketing efforts. Additionally, a higher AOV can indicate to search engines that your customers are satisfied with their experience on your website, which can improve your search engine rankings.
Email marketing can be a powerful tool for increasing your AOV. You can segment your email list by purchase history and send targeted campaigns to customers who haven't purchased in a while or who have only made small purchases. Additionally, you can send personalized recommendations and discounts to encourage customers to spend more.
Content marketing can indirectly impact your AOV by driving more traffic and sales to your website. By creating high-quality content that addresses your customers' pain points, you can attract new visitors who are more likely to make a purchase. Additionally, content marketing can position you as an authority in your industry, which can increase trust and credibility with potential customers.
Increasing your average order size or average order value is a smart strategy for growing your ecommerce business. By implementing the tips we've shared in this post, you can encourage customers to spend more per transaction and increase your revenue and profits.