Looking for ways to increase revenue from your Shopify store? While spending more on marketing and advertising might seem the most obvious solution, there’s a better way.
Increasing your Shopify average order value can help you improve your overall revenue and the customer lifetime value — the profit earned from a single customer during their relationship with your business.
The average order value (AOV) is a benchmark representing the dollar amount your customers spend each time they order from you. Shifting your focus from spending more on ads to increasing the AOV can help you grow your business without. increasing your spending drastically.
Curious to learn how?
Here are six effective strategies to help you increase your Shopify average order value.
1. Understand What Your Audience Likes
A two-year survey of over 100,000 U.S.-based consumers conducted by Motista revealed that customers who connect with a brand emotionally spend twice as much with that brand. Thus, understanding what appeals to your customers can help you increase your Shopify average order value.
Start by answering questions such as:
- Who is your ideal customer?
- What motivates them to buy from you?
- How can your products and marketing efforts better target those needs?
And if you need some help, send out customer surveys, conduct competitor analysis, and analyze past campaigns to find your answers.
Optionally, you could also dig into data from your Google Ads campaigns, Shopify reporting dashboard, and Google Analytics to identify which strategies offered the best return on your marketing investments.
2. Personalize the Shopping Experience
Accenture’s global survey of 8,000 consumers found that 91% of consumers are more likely to shop with a brand that provides relevant offers and recommendations. And the best part is that Shopify provides several ways to personalize the shopping experience.
Starting with a macroscopic approach, you can export customer reports to identify patterns in your sales. For instance, if there’s a region where a product sells more, you can create a targeted marketing campaign to promote the product to customers from that region.
Similarly, you can offer personalized recommendations based on your customer’s order history. But if you really want to push the limits of personalization, you can build a dynamic React-based storefront with Hydrogen and implement Augmented Reality powered shopping experiences.
Need help building a custom Hydrogen store? Contact us for a consultation.
3. Experiment With Different Discount Strategies
Discounts are one of the easiest ways to encourage customers to buy from your store. After all, who doesn’t love a good bargain? But it can also hurt your long-term business goals.
For instance, if you offer a 15% discount to first-time customers, your conversion rates might likely go up at first, but you’ll notice repeat purchases go down eventually. So it helps to be strategic with how and when you offer a discount.
Wholesale B2B businesses generally implement bulk and tiered discounts. However, there’s no reason why you can’t tweak that strategy for a B2C business. You can also offer free gifts or a flat percentage discount over a certain purchase threshold.
It’s worth mentioning that discount strategy effectiveness can vary based on the target audience and industry. So it helps to experiment with different strategies to understand which works best to increase your Shopify average order value.
4. Set Up a Loyalty Program
Customer loyalty programs are a great way to increase repeat orders, customer lifetime values, and average order values. Starbucks’ rewards program is one the best examples of a successful loyalty program.
According to data shared in Starbucks’ Q1 Fiscal 2022 report, Starbuck Rewards drives 53% of in-store spend. And if that isn’t enough, it also shares that customers subscribed to their rewards program visit their stores three times as much as those who aren’t subscribed.
You can implement one or more loyalty program types on your Shopify store, such as:
- Point-based loyalty programs.
- Tiered loyalty programs.
- Paid loyalty programs.
Don’t know where to start? Consider using a loyalty program app like Smile.io or Yotpo that lets you start for free and upgrade when you need more features.
You can also complement your loyalty program with an email marketing app like Klaviyo to set up automated referrals, trigger-based email reminders, and customer segmentation to get the best value from your program.
5. Use Upsells and Cross-Sells
Upselling and cross-selling are timeless strategies to boost sales and increase your Shopify average order value. And the best part is you can upsell and cross-sell in Shopify in several different ways, including:
- Recommending higher quality products on the product page.
- Recommending complementary products on the cart page.
- Setting up post-transaction upsells.
Experiment with different strategies at different stages of your sales funnel. And if you need help, consider using an app like ReConvert or Honeycomb that offers free and paid subscription plans.
6. Implement a Free Shipping Bar
There’s no denying that everyone loves free shipping. Invesp shares that 9 out of 10 customers say free shipping incentivizes them to shop more. And that’s not all. Orders eligible for free shipping usually average over 30% higher in value.
Customers can’t walk away from a good deal. Tap into that habit by encouraging your customers to add more products to their cart with a free shipping bar prominently displayed across your site.
There are some amazing free and paid apps on the app store that offer features like countdown timers and dynamic free shipping countdown. Shop around and compare apps before you finalize your pick.
Key Takeaways: Tips To Increase Your Shopify Order Value
We’ve shared six practical ways to help you increase your Shopify order value in this guide. Here’s a quick recap of everything we’ve covered:
- Dig into your business data and identify what appeals to your target audience.
- Personalize the shopping experience with product recommendations.
- Experiment with discounting strategies such as bulk and tiered discounts.
- Create a loyalty program to incentivize purchases.
- Use upsells and cross-sells across the sales funnel.
- Set up a free shipping bar.
These strategies are highly effective at boosting the AOV. But they won’t work if your Shopify store has fundamental problems like a poor user experience and design.
Need help identifying design and UX issues with your store? Contact our Shopify experts for assistance today.