Increasing your average order value (AOV) is a fantastic way to grow revenue without necessarily attracting a whole lot of new customers. It’s often more cost-effective to get existing customers to spend a little more than to find brand new ones. However, the key is doing it right. Australian consumers are pretty savvy and quickly switch off if they feel like they’re being pressured or tricked into buying things they don’t need.
We’ve seen countless SMEs successfully increase AOV by focusing on genuine value and relevance. Here’s how you can do it without annoying your customers:
- Strategic Bundling: Don’t just throw random products together. Think about what your customers commonly buy *together*. Create bundles that solve a complete need or offer a clear discount for purchasing multiple items. For example, if you sell coffee, bundle beans with a filter and a mug.
- Tiered Recommendations: Instead of just suggesting the most expensive item, offer ‘better’ or ‘best’ options. “You’ve chosen our standard garden hose, you might also like our heavy-duty hose with a five-year warranty for just $20 more.” This frames it as an upgrade, not a pushy upsell.
- Free Shipping Thresholds: This is a classic for a reason. Clearly display how much more a customer needs to spend to qualify for free shipping. It’s a gentle nudge, and most people prefer to avoid shipping costs.
- Personalised Suggestions: Leverage your customer data. If someone consistently buys dog toys, suggest a new flavour of dog treat or a comfy dog bed. Relevant recommendations feel helpful, not intrusive. We’re seeing more SMEs invest in basic recommendation engines to automate this.
It’s also crucial to analyse what’s *not* working. AOV isn’t just about adding more to the cart; it’s about adding the *right* things. Regularly review your upsell and bundle performance. Are customers adding the suggested items? If not, why? Is the pricing right? Is the messaging clear? Don’t be afraid to experiment and refine your approach.
Ultimately, successful upselling is about enhancing the customer experience, not just maximising profit. By focusing on providing genuine value and relevant suggestions, you can increase your AOV and build stronger customer relationships. Your next step should be to review your current product catalogue and identify potential bundling opportunities.
