Any business has three main ways to increase its income (without increasing its prices): – the first one is by getting new customers; – The second alternative is generating recurring purchases from old customers; – and, the third, is by increasing the average value of a purchase order (or average ticket).
In this article, we will be focusing on those techniques that allow you to increase the income in each of the purchases that your customers make. Remember, you can achieve this without the need to increase your sales quantity or your prices.
Why increase the value of a purchase order?
The reasons for increasing the average value of your purchase orders may vary, but there is no doubt that it is an excellent alternative to better capitalize on each of your clients. Some of the reasons to increase the average order value:
- It can be a quick way to increase your business income.
- Increasing the billing of your online store with new customers generally implies increasing visits to your site and, as you know, it is not always simple or economical to achieve it. It is often easier to work with the current volume of clients.
- It can be very healthy for your business, in the face of a drop in the number of sales, either due to the time of year or due to an economic crisis, it allows you to maintain a reasonable level of income to cover your cost structure.
Now, we will tell you what are some of the alternatives you have to increase the average value of your purchase orders.
product package
Product packages or combos provide your client with a set of complementary products, generally at a more affordable price than if they were purchased separately. For example, an online beauty store for women could offer a package that includes a blush, a foundation and an eyeliner, at a price 15% lower than if you bought each one individually. While that discount is a cost to the business, it is increasing the average order value. In addition, if the package did not exist, the customer would have possibly only bought one product and, therefore, the income would have been lower.
Tip for your online store: Know what products your customers usually buy together. Then create the bundle as a product within your store. Keep in mind that it is reflected both in the images and in the description of the package, so that your client has no doubts about what it includes.
Complementary products
Instead of offering a bundled package, you can offer your customer a complementary product when they visit a certain product page.
For example, in a shoe store, you can include as an additional option, laces of another color for the shoes that the customer is buying. Of course, those laces would have an additional cost.
Advice for your online store: You could create this companion product option on a product page, via .
free shipping
This technique, widely used in Internet purchases, is an excellent way to increase the average value of the order. For that, it is necessary to enable it only for purchases greater than a certain value. That amount has to be high enough to justify the cost of shipping for your business and, in many cases, it will be related to the customer needing to buy more than one product. Another alternative could be that instead of offering free shipping from a certain value, this benefit applies to certain product packages, such as those in the previous point.
Tip for your online store: create the free shipping option for certain products and also for purchases over a certain value.
Savings on volume purchases
If you offer a discount on purchases for more than one unit, it is a good practice to reflect the savings that your client would have, according to the number of units that they bought.
For example:
1 unit………$35 each
2 units…..$32 each
3 units…..$30 each
+4 units…$27 each
Advice for your online store: Define cheaper prices through the product variants and also mention the savings table in the product description.
Gift cards
The gift card (or gift card) can be a gift for purchases of certain products or for purchases greater than a certain value. In this way, in addition to encouraging the increase in the purchase order, you encourage a recurring purchase by the customer.
You can offer a gift card with a 10% discount or a specific amount for a future purchase.
Tip for your online store: create a gift card by creating a discount coupon and use it to communicate it on your gift card (either physical or virtual).
gift product
Offering a product as a gift is an alternative to offering free shipping or some other benefit. In this case, the gift product could apply for orders that exceed a certain amount, for product packages (whose package includes some free product) or could also be defined by the volume of purchase units of a certain product.
For example, in an online sports store, you could offer that when buying 3 tubes of tennis balls, the customer receives a fourth tube for free.
Advice for your store: Offer a free product for purchases of a certain value, product bundles or volume purchases. If the free product applies only to the purchase of certain products, add an image for that product along with the free product, to make the promotion more attractive. Also consider mentioning it in the product description e .
conclusion
Strategies may vary, but there is no doubt that it is in the interests of any business to increase the average purchase order value. The important thing is that you can detect the one that suits your business and in which your client can see real value. That way, they win and your business wins.
In all cases where you consider running a special campaign with a benefit for your customer, such as the free shipping mentioned above, always remember to consider .
Which of these actions or others that you are using were most useful to you?
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