Lately, we’ve noticed a lot of our clients are focusing on driving as much traffic as possible to their website.
Then their second focal point is increasing their conversion rate on their website.
Of course both are extremely important for success.
But, you need to focus beyond these two goals.
If you have a lot of traffic landing on your site with a high conversion rate, but your product price is very low, you might be just breaking even or losing money. Especially with the rising costs of advertising these days (and COGs).
This means there’s another metric you need to keep in mind - your AOV, your Average Order Value.
By increasing your AOV, your revenue should follow accordingly.
Unfortunately a lot of marketers and business owners underestimate the importance of calculating and understanding the AOV.
The more familiar you are with how much your customers actually spend each time they shop at your store, you can adjust your pricing and marketing initiatives accordingly.
Plus, understanding your AOV helps you optimise your current business model because you'll understand your customers' shopping behaviour and know what to expect.
And, naturally, as you understand your customer’s behaviour, you’ll be able to brainstorm ideas to make your product more attractive to your customers leading to a higher returning customer rate.
As you can see, your AOV is directly related to your brand loyalty
Even after the first purchase, paying attention to how much your customers are spending when they return to your store can provide a lot of information about your customer’s behaviour.
Tracking their behaviours allows you to create personalised offers and marketing to keep your brand fresh.
And since these customers are returning, it’s likely they’re willing to spend more since they trust and know your brand and products.
Knowing your AOV is a very effective way to increase your revenue.
Maybe even the easiest way.
And, once your increase your profitability, it opens up the door for spending more on your advertising and product development
If you’re interested in finding out ways on how to increase your AOV, make sure to follow us on Instagram and subscribe to our newsletter!
© 2023, Spreadify Marketing. All Rights Reserved.