Are You Leaving Money On The Table?
Learn how to boost your average order value (AOV), and reduce cart abandonment.
By Arielle Mullen, Senior Digital Strategist
Last year (2020) we saw a record-setting BFCM.
It’s difficult to capture customer attention, and only going to become more so as time goes on. One of the easiest (and often overlooked) methods of increasing the revenue earned by your ecommerce website, is to focus on boosting AOV and reducing friction points that cause people to drop off during the purchase process.
The earlier you can implement these methods the better, as there is no one-size-fits-all setup, and figuring out what will work best requires testing and time.
Boosting Average Order Value
Tip #1. Use a Free Shipping Bar to Encourage Additional ‘Adds to Cart’
Everyone loves free shipping, and it’s largely become the norm for ecommerce websites to offer this at a certain price threshold. Depending on the platform you’re using (like Shopify or Weebly), there are a million different plugins & tools to use that will do the heavy lifting for you.
Tip #2. Create a BOGO Campaign
If a BOGO campaign with only one product doesn’t make sense for your margins, consider creating a promotion where purchases of 2 (or 3, 4, or however many makes sense for your pricing), get one free. Alternates of this same tactic include ‘Buy Two Get Free Shipping’ or ‘Buy X and get 50% Off.’ The important thing is to ensure that the promotion you create benefits both the customer and your bottom line.
Tip #3. Look For Opportunities to Cross-Sell and Upsell Products
Look at your products and information from past purchases to see if certain items are commonly purchased together. When you have one or more combinations in mind, set up an automation to activate during the purchase process to alert the customer. For example – if you know Product A and Product B are purchased together at a high frequency, the customer should receive a notification during the purchasing process that suggests they snag both.
Pro-Tip: Use bundle upsells to offer a small volume discount on a product you already know your customers enjoy.
Reduce Your Cart Abandonment Rate
To learn how you can lower the number of people abandoning their cart on your website, it’s important to understand why people leave them in the first place. Consider this: The average person sees over 5,000 ads per day. How many ads do you think they pay attention to or remember? Meaning – capturing customer attention is difficult. Once you finally get them on your website, the vast majority don’t complete their order. Why is this?
Because most people don’t make a purchase the first time they land on your site.
If you want to see huge returns at the end of the year, NOW is the time to start working on the audience in your awareness stage.
When we imagine the customer journey, here’s how most people think it works:
- They’re scrolling on Instagram or Facebook
- They see an ad & click on it
- They add something to their shopping cart
- Payment info is added
- They make a purchase
Here’s how it actually works:
- They’re scrolling on Instagram or Facebook
- They see an ad and ignore it completely
- They see another ad (maybe on a different platform) and click it
- They subscribe to an email list in exchange for a discount code or some other value-add (no purchase yet)
- They receive an email campaign welcoming them to the list (and delete it)
- They receive a second email campaign a few days later & decide to click through to the website
- They add items to their cart, then get distracted and walk away
- They receive an abandoned cart email & click through
- They finally complete their transaction
By being realistic about what the customer journey looks like, we’re better able to create a sales funnel that meets their needs. Take a careful look at the different touchpoints along the way, and think about how you can reduce the friction points that might be causing people to drop off and not return. Do you have abandoned cart emails set up? Are you offering some sort of value-add in exchange for their return? Are there unnecessary fields in the payment window that you can remove or streamline?
Additional Tips to Reduce Cart Abandonment
- Make sure your return and shipping info is clearly listed on the website. Unexpected high shipping costs account for the largest number of cart abandonments, so be absolutely crystal clear on what it will cost to ship their order
- Is your website slow? High page load times account for a huge dropoff in sessions
- Offer a guest checkout option
- Include as many payment method options as possible. People tend to stick with their favorites, so if you’re not offering what they like, you could be losing people
- Make it clear how many steps are involved in the purchasing process with a progress bar
- Wherever possible in the checkout process, include thumbnail images of the products in their cart
- Test CTAs on your checkout page. Oftentimes “Checkout Now” will convert better than “Continue” or “Next”
- Look at your Google Analytics data to see where the most frequent dropoff point is located
- Remarketing is super important. Don’t forget to set up Google Ads, Facebook Ads, etc. to target people who reached the checkout page but abandoned their cart
This is just a sneak peek of the type of material we cover in MTO EDU! Wondering how you can get in on the action and jumpstart your business with help from digital marketing experts? Check out the full MTO EDU Digital Marketing Membership Program to learn if you might be a good fit!