Persuading a customer to make a purchase is like making the winning goal in a long, drawn-out game. Now, imagine that feeling over and over again.
As of May 2022, the average order value for a typical online retailer is about $115.45, according to IRP Commerce. Although your number may look a little different, with the right warranty and shipping partner it’s a number that can increase significantly, leaving your competition in the dust.
Here are some of our favorite methods to leverage when thinking about your average order value and profits.
Make Sure Customers Are Happy
Aside from acquiring new customers to grow your AOV, retaining customers is just as important (if not more important). How your customer perceives their experience shopping with you is critical to encouraging repeat purchases.
Customers want to see that you actually care about them, not just their purchase.
When a customer builds an emotional relationship with a brand, they have a 306% higher lifetime value and will spend an annual sum of about $699 with a company, versus regular, satisfied customers who will spend an annual sum of only about $275, according to a study from Motista.
So, how what are some things you can do to create happy customers:
- Focus on customer service: include live chats, 24/7 support and quick response times.
- Make it personal: know your customer in 360. Offer product recommendations, send personalized emails and maintain communication through email marketing.
- Give them more: add useful services in your checkout like free shipping, warranty for their products, shipping tracking, shipping protection and loyalty programs.
Add Value to Your Customer Journey
Back to the last point made, today’s customers look for more beyond products. They look for value, too. The more you offer, the more they shop.
A good example of this are product warranties. A PYMNTS study commissioned for XCover Go revealed that a whopping 78% of shoppers would spend more online, if offered protection at check-out, equating to an AOV increase of 62%.
Customers want you to know they are getting the best value with their purchase, whether that means free shipping or a protected parcel. Pair that with the fact that add-ons, like product warranties, can give you a little extra revenue, that’s a double-win.
By adding solutions that bolster their experience, you can effortlessly provide this.
Here are other ways you can add value to your customer journey:
- Include multiple ways to checkout including one-touch payments or a pay later services.
- Offer bundled discounts.
- Create a loyalty program.
- Offer sales or free trials.
- Include free gifts or samples.
- Create a birthday reward.
- Add product warranties to your checkout.
- Include shipping insurance with their purchase.
More shipping ideas.
Shipping is actually one of the biggest areas you can add value to their journey. Consider offering free shipping after a certain amount is spent if it’s within your budget. If you can’t offer that just yet, there are plenty of other services you can tack on to your shipping to boost your customer’s experience, like shipping tracking or shipping insurance.
These services allow customers to be in control of their shipping, creating value at little to no cost to you.
In fact, 60.1% of consumers would buy insurance or warranty from their ecommerce retailers if it were offered at checkout, according to a PYMNTS study commissioned for XCover Go.