Increase Average Order Value

5 Practical Ways to Increase the Average Order Value on WooCommerce

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If you have a WooCommerce Store, today’s a great day for you because you are going to join the list of the World’s Top Online Shops. We will work out some strategies to increase your average order value. Let’s see how much you know about this number.

What is not AOV?

Fight Club advertising quote about Average order value
“Fight Club” Movie Quote about Advertising

“Advertising has us chasing cars and clothes, working jobs we hate, so we can buy things we don’t need.”

That is a quote from the Fight Club movie. I agree the dialog is painful, but the meaning of Average Order Value or cart value lies in the sentence: Creating a need for the customer to buy. This simple sentence expresses the whole concept. Anything that somehow leads to an increase in someone’s spending on your products has increased the cart value.

 

How to Calculate AOV Quickly?

Imagine running a clothing store, and it costs us $10 to get a customer. It costs us $18 per pair of jeans to supply and arrange the delivery. The income from the jeans and delivery is $40, and the total profit is $12.

$40 – $10 – $18 = $12

Now we decided to add a discount on belts. It costs us $4 to provide a belt. This time, besides the $40 of income, we also get an $8 add-on for the belt. What does this do to our profit? Well, this takes it to $20.

$40 – $10 – $18 + $8 = $20

That was a simple case of how Average Order Value works. AOV can be quickly calculated using the following formula:

Total Income / Total Number of Orders = AOV

 

5 ways to Increase AOV on WooCommerce

 

🔸Convert Customer to a Member with Loyalty Programs

A Customer Loyalty Program rewards customers who always buy from a brand. This program can offer customers goods, rewards, coupons, or even pre-sales. The key to a loyalty program’s success is the customer’s benefits. If they are tempting, the program can help increase AOV and encourage the customer to buy again. Otherwise, the program will eventually fail.
Here are two examples of successful loyalty programs.

 

Target

Target loyalty program
Screenshot of Target Website Loyalty Program: RedCard

Target creates a loyalty program based on RedCards. When you are approved for a RedCard in-stores and at Target.com, you’ll get $40 off for your first buy over $40. Then you will receive 5% off on your purchases as long as you are a RedCard holder. This program also offers free shipping for online purchases. Below is a summary of program benefits, and their average order value will rise.

  • 5% off every day at Target and Target.com
  • No annual fee
  • Free shipping on thousands of items
  • An additional month for returns and exchanges
  • RedCard exclusives including special items, gifts, and offers
  • Up to $500 savings per year for purchases from special categories

 

Skip The Dishes

skipthedishes.com loyalty program
Screenshot of Skipthedishes.com Loyalty Program: SKIPREWARDS

 

This food delivery service offers a loyalty program based on Earning Points. Depending on the activity level, memberships are divided into orange and gold statuses. You are in the orange category for one order per month and get 5 points for every dollar you buy. By increasing the number of monthly orders, you enter the golden level, and each dollar gives you 10 points.

Members have exclusive deals, including discounts from selected restaurants and bonus points.

 

🔸Limited-time discounts

After a long search to find the product that matches your desired price, you will face multiple price increases at the time of purchase. What would you do? Probably the same thing over half of all potential customers do, Cart Abandonment. But the good news is, some buyers are willing to get reasonable offers or promotions by increasing their purchase value.

You can use the Smart Coupons plugin to run discounts and promotions on WooCommerce automatically. This plugin allows you to offer fixed amount or percentage discounts, free shipping, and gift coupons. Here are the plugin’s most popular features.

  • Time Sensitive Discounts
  • Shareable / Social Media / URL Coupons
  • Coupon with Product Purchase
  • Free Shipping
  • Gift Coupons / Gift products via coupon
  • Store Credits, Vouchers, and Gift Certificates
  • Subscription / Recurring Coupons
  • Location-based Coupons

Another plugin that makes the coupon discount a remote process is MC Woocommerce Wishlist; with this free plugin, you can design some conditions depending on the user’s wishlist added and his behavior. Then this plugin encourages users to buy that product with an automatic dedicated coupon that sends to their email inbox with compelling, personalized content.

 

🔸Offer Exponential Discounts for Less-Popular Products

Some products are hard to sell but make a good profit for your business. You can apply an exponential discount for these products. This type of discount can be increased in proportion to the number or final price of the product.

See this example:
A hat, a belt, and a beanie are some of your less popular items. A 10% discount will be applied to the purchase by adding the beanie to the cart. With purchasing another hat or any other unpopular product, the 10% discount is multiplied by a new number when purchasing another hat or any other unpopular product. This can continue up to the limit you choose.

 

 

Discount rules for woocommerce for exponential discounts
Discount Rules for WooCommerce for Exponential Discounts

 

Many WooCommerce plugins provide this dynamic pricing feature, but Discount Rules for WooCommerce have the best customer support service. This plugin is designed for conditional offers and gives different options to run your favorite discount. You can see some of these discount options here.

  • Cart subtotal based 
  • Product-specific 
  • Tiered 
  • Category-wide 
  • User role-based 
  • Product Attributes based 
  • First and next order

🔸Buy One, Get One Free (BOGO) Offer for Unique Products

Let’s say each shirt costs $30 for your store, and the price is $100 on the market. If you offer a 50% discount, the profit from the sale of each shirt will be $20.

$100/2 = $50
$50 – $30 = $20

Using the BOGO offer at $100, the profit is equal. But this time, two shirts have been sold per purchase. In fact, each order has doubled its profit.

$30 + $30 = $60
$100 – $60 = $40

 

Advanced Coupons for WooCommerce plugin
Screenshot of Advanced Coupons for WooCommerce Plugin on WordPress Repository

 

Fortunately, several WooCommerce plugins include this feature. Advanced Coupons and Dynamic Pricing would be good choices. They provide options like a loyalty program, scheduled tickets, and shipping offers besides the BOGO deal.

 

🔸Add special discounts for old Products

The logic behind the discount is simple. Some of your products have not been sold for a long time, and you want to persuade the customer to buy them by giving attractive offers. This is the most applicable discount for seasonal products. The following are examples:

  • Winter clothing sale at the beginning of summer
  • Stationery discounts after school starts
  • Mobile price decrease by producing newer versions

These products may not be among the customer’s main needs, so you should use proper tools to offer tempting discounts in your WooCommerce store. Pricing Deals for WooCommerce could become handy in this state. The free version gives you category, catalog, and package pricing options. The Pro version allows you additional choices like filtering discounts and automating the offers.

 

The Impact of WooCommerce Plugins on AOV

Don’t underestimate the impact of plugins on your site! Instead of spending time and money on coding (for example, creating a loyalty program), you can easily use plugins. We introduced some of these plugins in the previous section, but other plugins can also help increase AOV. You can see these plugins and their information in the table below.

PluginActive UsersFeaturesPrice
Conditional Discounts for WooCommerce10,000+
  • Conditional discounts
  • Customer-based discounts
  • Gifts & BOGOs
$60 
WooCommerce Bulk Discount20,000+
  • Unlimited rules and multiple discount offers
  • Quantity-based discounts 
  • Buy x and get a discount on x or y offers
$49 
Finale Lite20,000+
  • Limited-time discounts
  • Flash sales
  • Seasonal offers
$59
WooCommerce Extended Coupon Features30,000+
  • Auto coupons
  • Restricted coupons
$29

 

 

How A/B test Helps to Improve AOV

As an online shop owner, you are probably full of ideas that you’d like to know which one works best on your site. A/B test lets you know which scenario and details have the most favorable effect on the visitors. Let’s say you have a discount on your store’s history books. While customers are finalizing their purchase, you send a special offer for history books. What text can make visitors purchase the book and increase their cart value?
You can use a simple text:

“20% discount for history books”

Or use a more friendly tone:

“Do not miss the special discount on our history books!”

Or create a sense of need in the audience:

“Robert Heinlein: A generation which ignores history has no past and no future!”

And show some of your history books in the discount section.

 

Cartflows WooCommerce plugin
Screenshot of Cartflows Home Page

 

That is a simple example of just one discount. Increasing AOV requires several experiments, and you must implement an A/B test for each of your store offers. Maybe the Cartflows plugin can help your WooCommerce store with this test. From split testing a headline, or a button, to more advanced tests such as pricing and bundles, CartFlows A/B testing lets you try almost anything.

 

A Mistake that will Ruin Your WooCommerce Store

Besides AOV, figuring out two other metrics can have satisfying results for your sales and profits.

 

🔸Conversion Rate

Conversion Rate refers to the number of visitors who make a purchase from the total audience of your website. No matter how well your WooCommerce store is designed or what percent of your visitors are becoming customers, there is always room for improvement.

 

🔸The Average Revenue Per Visitor (ARPU)

ARPU represents the amount of revenue that a customer generates for a store over a period of time. The most common period for calculating this metric is monthly. There is no difference between businesses that provide services or sell products. The amount of money that enters the business over time is important. This index helps calculate profit and estimate future costs.

 

Conclusion

Don’t get discouraged if people don’t take your AOV trick every time. That’s really not our goal here. And if everyone is taking your average order value trick, then you need to add something else. There’s something wrong if everyone is taking it, keep it by all means, but add something else as well. Your goal is not to get everyone to buy it. Remember, all we need is one in 20 visitors to accept your offer and look at what it does to the average order value.

If this article were helpful to you, we’d love to send the link to your friends to help their businesses. Finally, as always, we are happy to share your experiences and questions with us in the comments section.

Saeed Threes
I love WordPress, its plugins, and building a free world with this tool. That is why I would like to share my experiences in this wonderful world with you. You can do anything with WordPress without any hassle.
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Saeed Threes
I love WordPress, its plugins, and building a free world with this tool. That is why I would like to share my experiences in this wonderful world with you. You can do anything with WordPress without any hassle.
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