Average order value (AOV) is one of the most important metrics any brand can track, and it’s especially useful for creating steady growth and boosting the king of all metrics: LTV. Here are four ways you can increase your AOV!
1. Cross-Sells and Upsells in the Customer Portal
Cross-sells and upsells are two of the most common ways to increase AOV. It’s pretty simple math: if your consumers add new or higher-priced items to their orders, AOV will naturally go up.
Your customer portal is a great place to offer your subscribers cross-sells and upsells. Many subscribers set their orders and then don’t spend much time looking at your product catalog afterward. Offering additional products in the same place they manage and track their subscription orders will grab their attention and introduce them to products they might not have noticed otherwise.
At Retextion, we’ve made it easy to choose the products you want to cross-sell or upsell. All you have to do is select the items that are most likely to interest your subscribers, and they’ll be displayed in a carousel right there in the portal. Your customers will be able to add them to their next shipment as a one-time order quickly and easily, and you can change your selection to highlight different products at different times of the year.
Bundles are a great way to increase AOV. We’ve seen brands have a lot of success using high-priced bundles that include limited-edition products or complimentary add-ons. These entry bundles create high initial orders, and then brands can roll those customers into subscriptions. Bundles are also a great value add for customers who may want to try a few different things and will appreciate a small discount for buying multiple products.
Keep in mind that for some subscription offerings, large bundles that carry a high price tag may not be the right call. While they can increase AOV, they can also lead to churn as your subscribers may not be able to justify that price on a recurring basis. A bundle-builder can be a good solution, since your consumers will be able to create their own bundle with a price point that they’re comfortable with.
3. New Products
Sometimes, increasing AOV is as simple as adding new products to your catalog. As much as we love bundles, eventually your subscribers are going to want to see something new and exciting. The best way to find out what they want is to ask them! Send out a survey to existing customers to see what they’d like to see in the future. What they say might surprise you, and as a bonus, they’ll appreciate feeling like your brand truly values their input.
Keep in mind that when it comes to launching products, timing is everything. Move too slow in diversifying your offering, and you could stagnate your business. Move too fast, and you may push launches that aren’t executed well and don’t bring in enough net new revenue to justify the time and money required to bring something new to market.
4. Rewards Programs
Everyone likes to win, and a rewards program can create that sense of accomplishment for your customers while incentivizing them to add new products to their orders. The trick is to craft an engaging rewards program that fits your brand and appeals to your customers. You want to create value for them so they’re driven to hit that next level or point total. Limited-edition flavors, exclusive access to new products, personalized or one-of-a-kind merch, and other high-value rewards can all generate excitement and drive your customers to act. Get creative, and your subscribers will thank you for it with a higher AOV!
Increasing your AOV by even small amounts can have a drastic impact on your brand’s revenue and create steady long-term growth, so use these tips to make AOV a priority. Want to talk to a Retextion expert to make the most out of your efforts? Reach out to us and we’ll get a conversation started!