Increase Average Order Value (AOV) With Upselling and Cross-selling Techniques
If your customers are only buying one item at a time on your webstore, your revenue is taking a hit.
It’s like owning a restaurant where everyone orders just a cup of water. Sure, it’s something, but it’s not enough to keep the lights on. Low Average Order Value (AOV) can feel like a stubborn roadblock—but the good news? You can turn it around!
This article will help you to get your customers to fill their carts without feeling like they’re being pushed into overspending.
AOV Meaning: Average Order Value
So, what does AOV mean? AOV stands for average order value. Low AOV happens when your customers buy only one or a few low-cost items per purchase, keeping their total spending low
Low AOV Negatively Impacts Your Bottom Line and ROI
This can hurt your revenue because even if you're getting sales, you're not maximizing the potential of each transaction. Basically, every time a customer checks out with just one item, you're leaving money on the table.
Imagine you run an online store selling clothes. A customer buys a pair of jeans but skips over the shirt, shoes, and accessories that would complete the look. That single-item checkout means you’re not making the most of each sale.
Low AOV doesn’t just negatively impact your bottom line—it can also affect your marketing ROI. When it costs you $5 in ad spend to get a customer to your site, you want them to spend more than just $10. Ideally, they’d spend $50, $100, or even more.
Using Cross-Selling and Upselling Techniques Is Key to Increase AOV
There are two proven strategies that will help you fix low AOV: cross-selling and upselling. Let’s break them down:
Why Is Cross-Selling Important?
Cross-selling involves suggesting complementary products to what the customer is already buying. For instance, if someone adds a smartphone to their cart, you could recommend a screen protector or a case to go with it.
What Does Upselling Mean?
Upselling techniques focus on encouraging your customers to upgrade their purchase. If a customer is eyeing a basic model, you might suggest a premium version with more features for just a little extra more money.
Cross-Selling vs Upselling
Both strategies are about enhancing the shopping experience and showing customers value they might not have considered.
Make the Most of Cross-Selling and Upselling Opportunities
Here’s how you can incorporate upselling and cross-selling techniques into your website’s strategy:
Sell More With Bundles
Combine cross-selling and upselling with bundles. Offer discounts for purchasing multiple related items, like "Buy this camera and get 20% off on a tripod and memory card." Bundles make it easy for customers to see the value in purchasing more.
Show “Complete the Look” Ideas
Cross-sell by inspiring customers with curated combinations. For example, if someone is buying a pair of jeans, recommend them complimentary products, such as the perfect shirt and jacket to go with it. It’ll increase their cart size while also improving their shopping experience.
Highlight “Frequently Bought Together”
Leverage cross-selling by recommending items that other customers often purchase together. A suggestion like "Pair this vacuum cleaner with these compatible filters and cleaning solution" can make all the difference.
Promote Premium Products
When customers are viewing a product, highlight a slightly more expensive version with added benefits. For instance, "Upgrade to the deluxe version for just $20 more and enjoy double the warranty and extra features."
Give Free Shipping for Bigger Orders
Offering your customers free shipping on big orders is a smart upselling and cross-selling technique to encourage them to buy more. For example, "Add $15 more to your cart to qualify for free shipping," and recommend items that complement their existing selection.
Boost Sales With Limited-Time Discounts
Offering limited-time discounts on premium products or bundles is a great upselling startegy. It creates urgency and motivates customers to spend a little more.
Give Loyalty Rewards for Larger Purchases
Encourage bigger purchases by offering loyalty rewards. Give extra points, discounts, or perks when customers reach a spending threshold. For example, “Spend $100 and earn double points.” This not only boosts AOV but also keeps your customers coming back.
Takeaways
- Low AOV can hurt your revenue and your ROI.
- Cross-selling and upselling are powerful strategies to boost AOV while improving the customer experience.
- Techniques like bundling, showcasing complementary items, and offering premium upgrades can effectively increase cart sizes.
Ready to Increase Your AOV?
Our tools make cross-selling and upselling simple and effective.
Schedule a free demo now and see firsthand how Clerk.io can help you increase your AOV and drive sales.