Updated: Oct 22, 2021
What is AOV Stand For?
An average order value (AOV) is the average amount of money that customers spend on each purchase or the total revenue generated by orders. AOV is used by marketers to understand customer behavior and make strategic changes in their marketing campaigns.
AOV can be calculated as follows:
Total revenue - (Average cost per transaction x Number of transactions)
= Average order value
Understanding your AOV is crucial to any e-commerce business. It is a metric used to measure the size of a purchase, and it can even tell you if a customer is likely to buy from you again.
The AOV of an online purchase is the average value of all purchases that a customer makes on your site or store. This metric does not include shipping, taxes, discounts, or coupons. Retailers and marketers understand the importance of maximizing average order value (AOV) and ensuring that it is as high as possible.
What does higher AOV indicate?
A higher AOV means that a customer is more likely to come back or purchase from your store again.
The seller that has a higher AOV is going to have an increased chance of being recommended by the platform. This is because they are the most trustworthy sellers on the platform and have been found to be more successful with customers in terms of conversion rates and purchases per order.
Regardless of where you're selling your product, targeting a high average order value can provide you with a competitive edge over other sellers
Retailers are always looking for ways to grow their profit margins. One strategy that has been shown to be successful is targeting a high average order value. Research has shown that targeting buyers with the highest average order values can contribute to an increase in revenue.
To increase your average order quantity per order, we’ve listed three methods for you to follow:
Tip #1 Create more offers and deals for customers
With more and more online companies, it is becoming tougher to be successful and stay ahead. The customer's tastes and expectations are constantly changing. This makes it very hard for companies to keep up with the trend and offer what the customers want. As a result, we need to create offers and deals that not only look good but are also enticing for customers.
We can offer something they might have never thought of before or provide an incentive that will make them come back again in the future.
Offering a customer a deal, a discount, or a special offer can be a great way to get them interested in your product. The more deals and offers you have, the more likely it is that they will find something that interests them. Offering deals and offers also helps keep customers engaged with your business. You can also offer them a coupon code in exchange for completing surveys, signing up for newsletters, or other actions.
These deals not only helps to keep customers engaged with your business, but it also incentivizes them to take actions. You can offer them a coupon code in exchange for completing surveys, signing up for newsletters, or other actions.
Tip #2 Push deals on social media channels
Push deals are a good way for businesses to promote their products or services. But this is not enough if they are not pushing it to the right people. Social media channels are one of the best places to promote your product.
The importance of push deals on social media channels is that when you post it on social media, you can post it with hashtags or mention specific users in order to get more views. Push deals are also good because when someone retweets your deal, they will have access to your product or service for free.
Push deals are often found on Facebook, Twitter, Snapchat, and Instagram. There are many different types of push deals that can be put on these channels. For example, there are discounts or promotions that can be done on these channels. There is also an option for contests and sweepstakes which typically will involve users taking a selfie with the product or answering a question to enter.
Since you’ve gotten this far, we’ve added a bonus tip for you!
Tip #3 Offer discounts on bulk purchases
One way to increase sales is by offering discounts on bulk purchases. Offering discounts on bulk purchases is a great way to attract customers and increase the chances of them buying more. This will lead to customers buying more items at one time which in turn will generate higher profits because the cost of production goes down. This is because people are attracted to deals and discounts more than anything else.
The more items you buy, the greater the discount will be. For example, if you buy 5 items, you'll get 10% off each item; but if you buy 10 items, you'll get 20% off each item.
Can Exit Intent Popup help with the AOV of your Shopify Business?
An Exit Intent Popup is an interactive pop-up that appears when a customer is about to leave your site. It should be informative and should encourage the visitor to stay on your site to convert.
According to a study by marketing firm VWO, 77% of people who see an exit intent popup decide not to leave the site.
Exit intent popups can be used for many different businesses. If you own a e-commerce store, you can use exit intent popups to offer a discount or coupon code to customers when they are about to leave your site. You can also offer other products that complement the one they are looking at so that they have a reason not to leave.
A well-designed, informative Exit Intent Popup should be able to convince people who are about to leave your website that there are still other options for them or that they should take one last look at something before leaving. It will also give you the opportunity to display products they might have missed while browsing through your store.
Another Factor to Consider: Implementing Heatmaps For Your Shopify Store
Heatmaps are an analytics tool that lets you see where the users are clicking the most on your website. They can be used to increase conversion rates by targeting specific areas of your website.
Heatmaps allow us to analyze the site visitor data and find out what is working well and how we can make improvements to our conversion funnel. It is one of the simplest ways to identify problems with our site and fix them to make it more user-friendly.
Heatmaps for Shopify stores can help us see where our visitors are clicking, what their scrolling patterns are like, how they're browsing through our product pages, which products they're interested in, etc.
The AOV is the amount of revenue generated per order. This means that a customer can purchase multiple items and it will be considered as one order instead of multiple individual orders.
The AOV is one of the most important metrics for retailers to track, because if it falls below a certain threshold, they could lose their ability to maintain profitability. The key to increasing your average order value is to get people who are already visiting your website to purchase more items each time they visit.
As we have discussed, there are many factors that contribute to AOV, such as: price, product type, promotions offered when ordering the product, shipping cost etc. To increase your AOV you need to find a way to either reduce the cost of your products or offer a promotion when customers spend more than a certain amount.
We hope that after reading this article, you will have a better understanding of what your options are and why it is so important to keep your AOV as high as possible.