How to increase the average ticket with Artificial Intelligence

In this post you will understand what is artificial intelligence (AI) and how you can help increase the average ticket (AOV) in an online store.

In addition to knowing the meaning of both terms, we will also share some strategies and tools to increase the average ticketand we will tell you about a store that implemented Artificial Intelligence and obtained very good results.

What is Artificial Intelligence? 🧠

Artificial Intelligence (AI) is the ability of a machine to develop capabilities through repetitive processes and given patterns in certain practices. In e-commerce, Artificial Intelligence creates increasingly powerful algorithms and applications to detect consumption patterns, create predictive analyzes and offer personalized experiences to buyers.

What is the Average Ticket (AOV)? 📈

The AOV (Average Order Value) or average ticket, is the average value of purchases your customers are making. It is very important to calculate it since it allows you to evaluate how your pricing and sales strategies are working. Calculating it is very simple, here we show you how:

AOV= Total sales in $ / number of orders sold

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The importance of AI in e-commerce 🚨

Today the 70% of consumers are willing to share their data in order to have a much more personalized shopping experience. But when it comes to exploiting this opportunity, 63% of online marketers say creating data-driven personalization tactics is too hard to do. This has triggered the need in the market to create AI tools and solutions that allow creating these more personalized experiences for the client, such as —an application that, by the way, is available in the .

There are many benefits when applying Artificial Intelligence tools in an e-commerce. Some examples could be:

Give the customer just what he wants and
Automatically increase the average value of your orders, recommending and grouping products intelligently;
Personalize the experience to increase recurring revenue from subscriptions by optimizing for customer segments;
Reduce customer churn rate and enable smart;
Increased productivity as the time of creating this customization manually can be used for other tasks.

AI to increase the average ticket 💸

AI is a really useful tool to increase the average ticket (AOV) on e-commerce pages. Smart algorithms allow you to create personalized ones that increase the AOV in a non-invasive way, increasing customer satisfaction due to the precision with which the product recommendation was made.

According to several investigations and experience obtained with GraphPath, we can say that implementing these strategies in the product and cart page

up-sell: Offer an improvement to the purchase made. For example: if you are going to buy a cell phone with a memory of 100 GB, you are offered the same cell phone but with a memory of 400 GB for a higher price.
cross-sell: Offer a complementary product to the purchase made. For example: if you are going to buy a cell phone, you are offered accessories such as headphones or a wireless charger.
VOO: As described above, AOV is the average value of the purchases your customers are making, and is calculated as follows:

Total sales in $ / number of orders sold

Combos and recommendations: keys to increase average ticket 💰

Thanks to big data, several artificial intelligence algorithms have been created that allow the exploitation of buyer data to provide better experiences and results in e-commerce stores. Some tools to provide these experiences are the product combos and personalized recommendations being, without a doubt, the most effective strategies to increase the AOV.

Personalized recommendations, since suggest relevant products to the buyer and provide a better experience for as long as it stays on your page. Companies like Amazon reported a 29% increase in their sales by implementing this tool! I mean: it works.

Product combos are a solid strategy to increase your average ticket (AOV) in a single click. This strategy works for several reasons:

It is more likely that the buyer includes more than one item in the cart if you are given an incentive. For example, a discount if you take the 3 products of the combo;
when doing cross selling, the AOV will increase automatically. Plus products = plus $$;
Yes there are variety of products and complement each other, the buyer is likely to add the combo to the cart. For example, if a shopper is interested in a shampoo, they are likely to bring a conditioner, as they complement each other and there is already intent to buy.

The two strategies mentioned above are good, but they are much more effective if they are merged creating a single tool that generates personalized product combos for each client. For this you could use , available for Tiendanube.

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What can an AI tool do in your store? Real Case 🛠

AI can bring many benefits to your business. Today we want to tell you about case of a particular store that started using AI tools and the results obtained.

It is a shop that sells desserts and it started as a side job of a college student and personally on the college campus. In 2017, he launched an e-commerce and since then it has become very popular and a point of reference in terms of desserts on social networks and the internet.

This store (like all) had the intention of selling more. Taking advantage of the fact that it is a niche store, they discovered that it would be ideal to be able to sell products in combos in order to increase their average ticket (AOV) and income, but, they had four challenges:

Figure out what products needed to be put together;
Do not offer the same combo to all buyers;
Create combos manually
Segment customers according to their preferences and purchasing habits.

after a long researchthe team at this store discovered an AI tool that helped them with the above challenges and provided these solutions:

Generation of personalized product combos automatically;
Automatic user segmentation to make personalized recommendations.

By implementing this tool, the dessert shop had these results:

Increase 3X your average ticket (AOV);
96% of products (SKUs) have personalized recommendations;
Weekly sales through the tool;
Useful data collected from recommendations and user segments created by the algorithm.

What is GraphPath and why is it important for your store? 📌

GraphPath uses powerful algorithms to analyze your store’s purchase history, your users’ purchase intent, and customer profiles to generate smart recommendations to automatically created segments.

This tool has the mission democratize the use of AI for global e-commerce of any sizeallowing them to access world-class AI solutionsused by companies like Amazon, to exceed the expectations of their consumers and take their business to another level.

With this tool we seek to accurate, automated and intelligent recommendations your buyers to increase your AOV in one click. We also care a lot that our solution does match with your store, that’s why we created a customizable interface where you can adjust everything according to your page.

The user experience is very important, but it is also the experience of the stores that are looking for a solution that helps them boost their pages, so we guarantee you exceptional support. Contact us to help you with the installation, with the design or for any problem that may arise.