When it comes to increasing your revenue, most entrepreneurs’ first instinct is to attract new customers. But it’s not the only way to get more money.

By boosting the Average Order Value, you can grow your business without resorting to advertising campaigns.

Often, when a shopper lands on your webstore, they’ll only purchase what can solve their problems. But with some of the marketing tricks, you can significantly improve your purchase rates and balance cash flows.

In this blog post, I’ll show you the best strategies to boost your online store’s AVO and provide a better experience for your visitors.

Before that, let’s see what exactly the average order value means.

What is AOV & How to calculate it?

The Average Order Value, abbreviated as AOV, refers to the number of orders per shopper over a specific period. Simply put, AOV measures the average dollar amount shoppers spend when they make purchases on your webstore.

The calculation for AOV is as follows: total revenue/total orders.

How to calculate the Average Order Value?

For instance, if your webstore generated $2,000 in October, and there were 25 orders placed, the average order value is $2,000/25 = $80.

Average Order Value is an extremely effective measure that helps determine your customers’ buying habits and can help with tactics surrounding product pricing, placement of items, and advertising.

4 ways to increase the average customer value and boost profits

Here are four successful ways to help your brand grow alongside your ambitious:

Personalized Recommendations

In the era of fast-growing advanced technology, people value personalized customer service. The concept underlying personalization is to deliver product recommendations that are unique for every viewer.

According to statistics, 88% of U.S. marketers reported seeing significant improvements as a result of personalization initiatives.

Here’s an example of product recommendations in action from loefflerrandall.com:

The example of Product Recommendations

How does a recommender system work? A recommendation engine analyzes data about customers’ past behavior as well as what customers are browsing now to suggest products that will like the most.

Upselling and cross-selling everywhere

These days, product upselling and cross-selling are commonplace, and no wonder. By using these techniques, you can effortlessly increase your purchase rates. 

The idea behind successful product suggestions is to add them everywhere.

Why not implement any product recommendation type at your 404 page and give your visitors a short way to come back to the homepage?

A product recommendation box on your checkout page could be a good way to deliver similar products (around the same price point) that may satisfy user’s needs even better.

  • What’s cross-selling?

Cross-selling is an act of suggesting your shoppers additional, usually complementary items. Like this:

The example of product cross-selling

It’s a really effective way of offering items as the buyer can already see that items go so well together, and can now easily add them to the shopping bag without having to navigate around the webstore.

  • What’s upselling?

Upselling has the same purpose – boost  AOV – but it does so by suggesting a more advanced model of the products that have already existed in their cart.

Here is a visual:

The example of product upselling

Instead of adding additional items to the shopping bag, you are now upgrading to a more expensive model of the same product.

Upselling and cross-selling offerings can be optimized for each of webstore’s pages, driving more sales. To get a general idea about how it works, look at the simplified examples below.

Add product recommendations in unexpected places
  • Main page

When it comes to the introductory page of the webstore, nothing beats the power of the “Cult classic”, “Trending right now”, or “What’s new” strategies, which deliver new collections and popular products to visitors.

  • Product information page

“Buy The Look”, “Bought together”, “Similar Products” are perfect options for product pages. The reason? Visitors who land on a product page are still in discovery mode. This encourages shoppers to continue searching while enabling you to recommend relevant alternatives or things that might go with a given product.

The “Recently viewed” strategy helps you reignite the interest in the products, visitors have viewed once before.

  • Cart page

The “Similar Look Products” strategy performs best during checkout. It’s a good way to show items that are a little cheaper than ones that already exist in the cart. 

Improving your Average Order Value is an important step in maturing your business, and Recom.ai – Upsell & Cross-sell can help. Whether you want to highlight you best sellers, trending now products, new arrivals, or simplify navigation with “Recently Viewed” or “Compare With Similar Items” widgets, our app comes in handy.

Recom.ai – Upsell & Cross-sell allows you to create, customize, and put your upselling and cross-selling campaigns on autopilot. By installing our app, you can establish trust in your shop while increasing productivity, which, in turn, will boost your AOV.

A real win-win.

Product Bundling

Product bundling is offering several products as a single package. An example of product bundling would be a Dollar Shave Club’s travel set that includes traveler, razor, shave butter, daily face cleanser, and deodorant.

example of product bundling

Sephora presents some premade kits and also has weekly specials that allow shoppers to create their own collection of items. In this case, you provide your shoppers with the ability to choose and buy exactly what they like.

Sephora's product bundle

The takeaway here? Take a similar approach during BFCM campaigns and host a build-your-own gift event.

Rewards programs

Raise your hands if you want to improve customer retention and of course, notice a sustainable rise in your webstore’s AOV.

There are many ways of getting return customers. And one of the most successful ways to turn your one-off customers into lifelong ones is e-commerce loyalty programs.

Ecommerce loyalty programs are geared towards keeping and engaging current customers, so they will place an order more often, buy in higher quantities, and interact with your company more frequently.

Moreover, loyalty programs will allow you to deliver exclusive offers to your loyal patrons, generating income in the process.

There are no doubt rewards programs are especially effective in the beauty industry.

How to improve customer retention with Loyalty Programs?

Sephora’s loyalty program lets its customers earn points on all purchases. But the main reason for its success is a strong focus on personalization. At each stage of a three-tiered system, Rewards Program’s member gets access to particular “goodies”, be it discounts, special promotions, or exclusive sets.


 To review:

  • Calculating AOV can help you define how your webstore is performing. After you’ve calculated your AOV, you can incorporate some of the tactics mentioned above.
  • Experimenting with product recommendation strategies can significantly improve your bottom line and help your loyal patrons to search for what they want to buy.
  • Product upselling and cross-selling is another highly effective way to accelerate your webstore’s potential. Plus, it’s SO simple to launch that there is no reason not to use it. If you’re ready to give it a shot, Recom.ai will be helpful.
  • By merging your products into one SKU means you can encourage consumers to spend and order more items, which is the potential for a greater average order value.
  • Loyalty programs provide powerful motivation for customers to sign in, return, and buy constantly. Moreover, they create meaningful connections.

I hope that these strategies will help you deeper connections with your customers and increase AOV.

Because no matter where you’re at in your business, there’s always room to improve.