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Having a threshold for free shipping encourages customers to spend more than they actually planned. Setting the right threshold value is important, ideally, it could be up to 15% of your average shipping cost and AOV put together.
Discount with minimum order value is the wise strategy while volume discounts can also be profitable. Discounts can also be combined with loyalty programs where customers who spend more, are eligible for greater benefits via discounts or free shipping.
Cross-sell can motivate customers to buy items in combination with each other. Show a pop-up of recommended products that match with the products selected by the customer. Your upselling strategy should encourage buyers to spend more for the same product.
Gift cards are a great way to motivate customers to repeatedly purchase from your store. Instead of providing gift cards for current purchases or free shipping, provide them for the future purchases thereby reducing your ad expenditure.
During slower periods, time-sensitive deals create urgency and help increase conversions drastically. Use time deals like ‘order within 24 hours for a free gift card or free shipping’ to encourage customers to quickly decide on their purchase. Announcing discounts on first 100 orders or so, will also help.
Announce big prizes and encourage customers to participate in your games and contests. The key is to motivate the customer to buy more for increasing their chance to win the big prizes. This will directly increase your AOV. Do make sure you reward the customers with prizes as promised.
Depending on the customers and the products you sell, use a methodical series of A/B testing to gain data insights and then you will be able to optimize for increasing conversions and AOV. An example of A/B testing could be listing ‘frequentl bought together’ that encourages customers to buy more.
A customer-centric return policy allows them to buy even costly items with a confidence. Keep the return policy simple and for any reason. If possible, extend your help by accepting shipping costs for returns and exchanges to ensure that the customer is happy.
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