{"id":66433,"date":"2022-03-04T00:00:00","date_gmt":"2022-03-04T00:00:00","guid":{"rendered":"https:\/\/connectif.ai\/blog\/three-strategies-to-increase-the-average-order-value-at-checkout\/"},"modified":"2023-07-04T16:40:32","modified_gmt":"2023-07-04T16:40:32","slug":"three-strategies-to-increase-the-average-order-value-at-checkout","status":"publish","type":"post","link":"https:\/\/connectif.ai\/en\/blog\/three-strategies-to-increase-the-average-order-value-at-checkout\/","title":{"rendered":"Three Strategies To Increase The Average Order Value At Checkout"},"content":{"rendered":"

If your client is at the site checkout, that\u2019s a good sign. It means they have decided to complete a purchase and a transaction is on its way. Take advantage of your hot leads and increase the average order value using personalized recommendations. Automating effective strategies will be really easy if you read through this post.<\/p>\n

At Connectif, we have drawn a series of very valuable conclusions while working with over 1000 eCommerce sites. We know how to make customer journey hot points profitable. The checkout phase is clearly one of those hot points. Let\u2019s see how we can use it to increase the client\u2019s average order value.<\/p>\n

Average Order Value: what is it and how to calculate it<\/b><\/p>\n

 <\/b>First things first: what is the Average Order Value (AOV) and why is this indicator important?<\/p>\n

What is it<\/b><\/p>\n

 <\/b>The average order value is a type of metric used to analyze site profitability. It helps you track the money that clients spend on average on the shop.<\/p>\n

How to calculate it<\/b><\/p>\n

 <\/b>To calculate your AOV, you\u2019ll need to divide your total sales revenue by the total amount of orders. Keep in mind that you\u2019ll have to choose a specific time frame.<\/p>\n

AOV = total sales revenue (in \u20ac, $, etc.) \/ number of orders (tickets)<\/b><\/p>\n

What it is used for<\/b><\/p>\n

Average order value is a very useful indicator that can be applied to multiple contexts. You might be interested in knowing what\u2019s the AOV for a specific product category, a client segment or a certain time frame (for instance, to track campaign results).<\/p>\n

You\u2019ll need to take into account the natural variations that can occur depending on the client type or the customer journey stage your client is in. For example, the AOV for loyal customers is usually higher than the AOV for new or less active clients. First purchases usually have a lower AOV than the next too, as brand trust has not been established yet.<\/p>\n

All in all, analyzi<\/b>ng your AOV along with other KPIs -for instance, the customer lifetime value (CLV), the customer acquisition cost (CAC) or the cancellation rate- can be useful to evaluate a campaign\u2019s profitability or your site\u2019s profitability in general.<\/b><\/p>\n

Why does AOV increase at checkout?<\/h2>\n

When a customer gets to the checkout page in your eCommerce site, this means they\u2019re prone to make a purchase.<\/b> A transaction is on its way! You can increase your revenue in that exact moment using different techniques. For instance:<\/p>\n

\u2013 Offering attractive complementary products and\/or impulse buys (cross selling).<\/p>\n

\u2013 Displaying superior product recommendations (upselling).<\/p>\n

\u2013 Displaying product offers related to the items in their cart (cross selling or upselling).<\/p>\n

\u2013 Displaying small items (complementary to the products in their cart) that help the customer reach free shipping.<\/p>\n

\u2013 Offering bulk discounts.<\/p>\n

How personalized recommendations can make your actions more effective<\/h2>\n

In any of the previous situations, your results will always depend on the level of personalization of your product recommendations.<\/p>\n

Personalization is one of the cornerstones of any marketing automation strategy.<\/b><\/p>\n

In order to design a personalized brand experience online, eCommerce sites need to have a series of tech tools which can be used to manage data and get to know their audiences, as well as their behavior, preferences and intentions.<\/p>\n

Sites that are using platforms like Connectif can access that knowledge to activate AI-based automated personalization strategies that eliminate barriers to purchase.<\/b><\/p>\n

When Connectif tracks the users\u2019 digital footsteps, the clients\u2019 interactions are recorded in the specific context in which they took place. For instance: when a user creates their shopping cart, Connectif collects information about the items that have been added or removed during the session, but also about other features like the number of individual products, their price, available discounts, product categories, brands chosen, average prices, time frames, what they end up purchasing, etc. This is what feeds recommendation algorithms later on.<\/b><\/p>\n

Maximizing profit during the checkout process<\/h2>\n

Next we will walk you through three strategies that you can use to boost your average order value at checkout:<\/p>\n