7 February 2018

Increasing average order value for online store

We are telling how to increase average order value, how it is increased by the others and how to set up upsells in retailCRM.
There are many techniques for increasing upsells. For example, it is possible to use additional traffic sources or optimize the current ones. You can work at repeated sales or increase the average order value (AOV).

There are two ways for increasing the average order value:

Upsell is selling a more expensive model of the same type of product. For example, selling iphone 8 plus instead of iphone 8.

Cross-sell is selling additional products from other categories. For example, adding a wireless charging and insurance to iphone 8.

Increasing AOV on the site

Different upselling scenarios are possible for online store. Obviously, you should start with the site. Widgets with product recommendations will help a lot at the first stage of sales funnel. The ultimate success will depend on the relevance of the very product offerings.
Do not forget about the cart. When customer creates an order, offer him/her additional goods by means of the widget.

Upsell over the phone

The next stage in the sales funnel is confirmation of the order by phone. The success of upsell depends on the conversion of your sales scripts and skills of your managers who make calls.

Maximilian Vali
Head of online store Pink beauty
We are working at all levels. Widgets offering additional goods are used on the site. In the cart is used a motivation widget, which helps to increase average order value — we offer a gift, a discount if the person purchases at a certain sum. This has helped to increase AOV by 10-15%.

Maximilian Vali
Head of online store Pink beauty
When the order is created, managers offer additional goods according to the clear scripts. They do not just offer to buy something, they tell about bonuses for purchasing at the certain sum. Making a purchase profitable is the main principle, «pushing» is not welcomed.

Also, we are monitoring upsell in analytics. This indicator influences the managers` salary.

Letters for increasing the average order value

One else way to increase sales in the online store is triggered mailings. Increase AOV or the number of the repeated sales by their means. If you would like to increase the average order value, time period between order creation and sending the letter with upsell should be short. In this case, the customer will have time to take the decision and add an additional good.

Iskandarova Natalya
Technical specialist of online store Svyataya
We are trying to bring up a loyal and long-term customer. The customer base had been segmented on the basis of RFM analysis. It became clear that customers made 1-2 purchases and stopped. It was just unacceptable, so we had decided to work out the letters, stimulating customers at all stages.

In the very first letter manager gets acquainted with the customer and congratulates him/her with the first order (in non-working hours, the manager informs that he/she will call back for confirmation in the morning). After order confirmation and assembling, the customer gets a letter with a favourable discount, if something else is added to the cart until the shift change, i.e. later on the same day.

Iskandarova Natalya
Technical specialist of online store Svyataya
Delivery around Russia is free, when ordering more than at 6 00 rubles. We set up two different email templates depending on the order cost. Customers add additional goods to their carts more enthusiastically, knowing that then the delivery will be free.

Upsell had increased by 20% just one month after implementation. Of course, seasonality could have influenced this indicator, but dramatic improvement is obvious.

Setting up in retailCRM

In ActionAssistant of retailCRM is used the mechanics «Upsells to purchased items» for increasing the average order value. Create a new rule in this mechanics and enter the settings according to the screenshot.
In the left column (items block) select the main item or commodity category for the rule to be executed. In the right column select the items and item categories you would like to upsell.
Select the required action:

  • Email sending
  • SMS sending
  • task creation
  • pop-up window with notification

It is possible to add product recommendations from the right column to the letters. Ask the technical specialist to do this via inserting the cycle into the letter template:
{% for item in items|first.recommendItems %}

{{ }} - {{ item.offer.price }}

{% endfor %}
The cycle can also be used in notifications and tasks — the manager will always know what to offer to the customer.

Try to set up upsells, for it is a very good way to increase the sales number with the minimum costs. Also, look at launching a standard mailing based on Recency and Frequency indicators to increase the customer`s lifecycle.