Growth Series BLOG

Its a Premium BLOG template and it contains Instagram Feed, Twitter Feed, Subscription Form, Blog Search, Image CTA, Topic filter and Recent Post.

SCHEDULE A CALL
All Posts

What Is High Average Order Value : Best practices with examples

 

 E-commerce brands that sell exclusive and premium products tend to have an increased order value. Consumers become very skeptical while spending a huge amount while shopping online. They find it risky and try to avoid buying products with high AOV.

With so many alternatives available for each and every product at a variety of prices, a brand with a high AOV (Average Order Value) has trouble making a mark and selling its product. A high AOV brand has to motivate their customer to spend on their website using smart marketing.

In this blog we will discuss what marketing tactics a high AOV brand can use in order to grab the right audience.

According to the latest  IRP ecommerce data in April 2022, the average order value (or AOV) in ecommerce is £92.39, which is approximately $115.45.

ecommerce order value

Some of the best practices & hacks are discussed below:

1. Your Ad Should Justify its Price:

There are countless alternatives available online for every product. In order to stand out,  it's important to highlight why your product is unique.  You can create a video ad to demonstrate your product and explain why it has a higher value. If you can't adequately express your product's price in text, consider conveying it verbally.

2. Spend a Good Budget:

If you're paying less for Facebook, the firm will cut down on the number of advertisements you see. Advertisements on Facebook are auctioned off, and competitors bid against each other to get them posted. The highest bidder gets to show their ad, so you're more likely to win the auction if you spend a lot of money on a regular basis. This will help position your company above the competition. The more people see and interact with the ads, the more conversions you'll get.

3. Targeting the Right People:

 According to the Seattle times, 70% of India's population lives in poverty; therefore, ads of high value are not suitable for them. A Designer couture company should focus on the high-end group of people. Targeting the top 10% of Indians according to their income is an excellent targeting strategy. This can be very helpful for brands with high AOV as they can target the highest income groups for higher conversion rates.

A Google Campaigns feature allows one to target the ads on the basis of 'Household Income'. This can be a very helpful thing for brands with high AOV as they can target the top income groups for better conversions.

Optimize and automate your targeting with Adyogi! Learn more here

target the right people for marketing

4. Run Brand Awareness Posts:

Brand Awareness campaigns play a very important role in promoting the new product or reviving older brands. Your Brand Awareness Campaign should highlight what makes you different from your competitor's brand. You can make people see what goes behind the making of your product & why is the price so high. 

5. Prove the Proof:

Customers would like to see the results if a product is of high value. They can not just rely on your 'promise' that the goods are of good quality & will meet their need. To prove them, you can capitalize highly on 'Customer Reviews & 'Testimonials'. It is always the best idea to let the prospective audience hear the review of a product from a past customer.

Positive customer testimonials help with credibility of your brand

You can actively work on seeking 'reviews' & 'testimonials' from your customers & start using them as a marketing strategy to target future customers.

6. Online Presence:

Today when the audience decides to buy something from a particular brand, the first thing they do is 'RESEARCH'. When it comes to a high-value product, the intensity of research is also high. Imagine searching about a brand & finding very little information about it. It will affect their purchasing decision & they'll end up not buying the product at all.

mulmul online presence

Whereas, if you have a good social media presence and a clear crisp website, the users will feel confident in buying your product.

7. Store Presence:

According to a recent report published by Economic Times, shoppers prefer to buy with brands that have both: Online & Offline presence. This not only ensures a seamless flow across all channels, Digital & Physical but also boosts the confidence of the audience in a brand.

mulmul stores

While this is definitely not possible to start an offline store in a jiffy but it should definitely be in your bucket on your road to scale-up.

8. Authenticity:

The rule is simple: If you are charging more, You should be delivering the best. If this criterion doesn't meet, the business will not see the performance. For example, If you are promising that a particular product, say a Banarasi Silk Saree is made up of 100% silk & is handmade by local craftsmen, you have to make sure it is true & reflecting in your product.

9. Customer Service:

Good customer service is one of the most important aspects of your business. And when you deal with high-value products, you get more responsibility on your shoulder to provide the best service possible to your customers. If the customer is trusting you with their hard-earned money, you have to make sure that they are not disappointed with the service. Or else, it will harm the brand's reputation & it will not be good in the long run.

10. Luxury Packaging of Goods:

Good packaging creates a sense of excitement & surprise.  Packaging your goods along with complimentary gifts, notes, cards, etc excites the customers even more. Luxury packaging for high-value products will give customers a sense of pride in owning that product. For example Sabyasachi, Manyavar Mohey, Manish Malhotra, Label Ritu Kumar, etc. The kind of packaging they do for their products oozes richness. While this may sound like something very little but it can make a huge impact on your brand.

11. Enable Partial Payment Option on the Checkout Page:

For a brand dealing with high-value products, it is always a challenge for them to decide on an appropriate mode of payment. If they focus primarily on 'Prepaid Orders', the prospective buyer will feel a sense of discomfort in giving so much money beforehand. And on the other hand, if the brand shifts to COD, it may happen that the RTO will increase & thus not feasible for the brand.

This is where the partial payment comes into help. There can be an option that customers can pay half the price when ordering the product on the website & the other half can be paid when the order gets delivered successfully. 

12. Delivery Time to be Short:

When users buy a high-value product, the excitement & anxiety kicks in differently until they finally receive the product. The more we make the customer wait, the more anxious & frustrated they will become. So it is always advisable to deliver the product to the prospective buyer within a short span. Within a  recommended time frame of 4-5 working days. It will not only keep the clients satisfied but will also help in reducing the RTO greatly.

 

 

For a high AOV brand, it is very much necessary to uphold its customers and grow its business from the bottom line. Put these tips into practice and you see an increase in your conversion rates and website traffic.

 

 

Adyogi, a digital advertising creative platform will help your high AOV brand save time and generate more revenue. We will automate digital Ad creation to establish an automated prospecting, targeting, and retargeting approach that targets the client's merchandise and cross-promotes using cutting-edge technology, to boost sales. We've been able to increase client revenue by upscaling it 7x - 8x through Adyogi's performance-based solution.

Get in touch to see how we can help you grow your business online.

 

Request a quote totally free.

About Us Nemo nibh, condimentum autem ligula ultricies, velit, sociosqu eos voluptatibus modi, porttitor natoque proin proident! Facilisis dapibus convallis

Fill out the form below, we will get back you soon.

OR

Related Posts

10 festive marketing strategies to 10x festive sales

The eCommerce industry has experienced a significant transformation in recent years, with festive season proving to be a pivotal period for businesses to capitalize on the surging shopper intent. During these festive events, online sales have surged dramatically, reshaping the retail landscape. In fact, according to thehindubusinessline, in 2023, e-commerce platforms have reported a substantial 30% surge in order volumes when compared to the previous year 2022.

How to optimize your checkout process to boost sales

During the festive season, your e-commerce business can make a lot of sales and earn profits. However, one issue that also plagues at that time is increased returns to origins, abbreviated as RTOs.

10 marketing metrics for successful D2C advertising

The marketing success of an ecommerce brand heavily relies on decisions driven by data. The capacity to collect and evaluate the key performance-driving marketing metrics decides the profitability of your business. What are D2C marketing metrics? D2C marketing metrics are those KPIs that help your ecommerce business make informed decisions for resource allocation and performance improvement. Some key use cases of these metrics include measuring return on investment, analyzing customer preferences, and benchmarking performance against competitors. Not all marketing metrics enable these use cases or make performance easier. Those metrics that don't have an substantial impact are called vanity metrics, such as page views, unqualified leads, or social media likes. identifying the most impactful metrics for your ecommerce business is the what you should concentrate on. In this blog, we will walk you through the key D2C marketing metrics for maximum eCommerce profitability in 2023. Organic traffic Visitors that arrive at your website as a result of unpaid search results are classified as organic traffic. Organic traffic is free and originates from a link on a search engine's results page instead of a paid advertisement. The advantage of this form of traffic is that it comes from non-paid sources. In order to increase this type of traffic you must keep your social-media post content engaging, Collect user-generated content and solicit testimonials from your customers, Create a faithful following on social media, and have a presence on different platforms such as Amazon, Nykaa, Myntra, etc. Calculating organic traffic does not require complex calculations as Google's analytics tools can give you the precise figures. The ideal range of this metric should be between 10-20% Cost per session The Per Session Value (PSV) is an indicator within the Ecommerce section of Google Analytics. It demonstrates the average revenue created in each session. The Cost per Session metric helps us to evaluate the efficiency of our promotional activities by contrasting our Total Ad Spend with the number of User Sessions created. A session is an accumulation of user behavior within a defined period and users may have numerous sessions in one day. You can reduce your cost per session and boost the Click-Through Rate (CTR) by utilizing high-definition, eye-catching product pictures. It is important to effectively convey the Unique Selling Points of the product to get more clicks. You can also run Performance Max Ads to get purposeful clicks at a lower cost. Additionally, you can run mid-funnel campaigns such as Discovery Ads on Google and View Content Ads on Meta. The ideal CPS of this metric should be between 5-10 INR Add to cart The add-to-cart rate is the proportion of visitors who put at least one item in their basket when they are browsing your eCommerce website. It is essential to keep track of this metric since it gives you a clear indication of various aspects. It can reveal if your choice of products is successful, if your website is user-friendly, and if your promotional campaigns are successful To boost the number of users who click Add to Cart, it is important to display the price and a call-to-action (CTA) button that says "Shop Now" to target customers who have both the intention and the means to purchase. Additionally, it is advisable to advertise items that come in various sizes and to provide a thorough and precise product description along with clear and high-quality images on the website. The ideal range of this metric should be between 10 -15%. Cart to purchase or Transaction Cart conversion rate refers to the proportion of customers who make a purchase after adding items to their shopping cart. It reflects how successful your checkout process is in terms of finalizing the sale. This rate is vital as it assists in gauging the effectiveness of the checkout process. Minimizing the number of people who abandon their online shopping carts on your website can help to amplify the number of completed purchases. Take a look at the checkout page to see if there are any extra charges for cash-on-delivery and if the shipping charges are made visible. Moreover, make sure that the cash-on-delivery option is available. The ideal range of this metric should be between 15 - 20% Average order value AOV is an essential ecommerce measurement that stores focus on. It provides them with valuable information about their customers, going beyond just the acquisition of them. Despite this, some merchants are overly concerned with acquiring customers, without paying enough attention to the critical importance of a good AOV. This D2C metric measures the mean sum of all orders that are placed with a retailer in a certain period. It has an immense influence on decisions like advertising costs, store design, and product costs you can try bundling items together to boost your average order value To boost your average order value, you can try bundling items together or utilize segmentation or filtering to encourage customers to purchase higher-priced products. The ideal range of this metric should be >1500 Repeat customers rate A repeat customer is someone who has made multiple purchases on your website. The time period between the purchases does not have to be within a certain timeline - for example, a customer who made a purchase a year ago and then bought something recently is still regarded as a repeat customer. This is a metric that is often used by online vendors and is generally expressed as a percentage. It is a beneficial indicator to assess the customer experience and determine the value a customer receives from shopping at your store. You can maximize the number of customers who come back to your business by launching dynamic ads targeted at those who have visited product pages and given up in the middle of their cart checkout. You can also reach out to people who have interacted with your brand before by using email marketing, SMS messages, and WhatsApp messages that add a personal touch. The ideal range of this metric should be >25% Return to Origin When an order is not able to be fulfilled or it is sent back by the customer, it is classified as a Return to Origin (RTO). In other words, RTO is when the order cannot be delivered and has to be sent back to the source. It is essential to have control over RTOs regardless of the volume or value of orders. Ecommerce organizations can help limit the effect of returns and exchanges by amending their product descriptions, creating an ideal return procedure, and making sure orders are accurate. They can also motivate purchasers to utilize payment methods other than cash on delivery to lessen the financial effect of returns and exchanges. They should introduce a verification process to confirm that the customer is accessible for delivery. Customer Acquisition cost Acquiring a consumer to purchase an item or service is known as the Customer Acquisition Cost (CAC). This cost is usually connected to the client's lifetime value which is a significant monetary element. With CAC, any company can decide how much it costs to get each consumer. The D2C sector also requires relying on the quality of your products, services, or brand to make them stay. Rather than spending money on one-off customers, extending the life of each customer allows your business to grow faster and more cost-effectively. Decrease your customer acquisition costs by concentrating on suitable demographics, targeting existing customers, enhancing client retention, experimenting with affiliate programs or influencer marketing, and marketing automation for monitoring the entire process. Cart abandonment rate The cart abandonment rate is the proportion of online shopping carts left by customers before finishing the payment process. To measure this statistic, one has to divide the number of completed purchases by the total number of created online carts. Data on cart abandonment can be used to analyze the performance of an e-commerce company, specifically regarding issues with the checkout process. You can decrease the rate of customers abandoning their carts by giving the option of guest checkout, incorporating tiny pictures of the items throughout the checkout procedure, adding progress markers on the checkout page, being open about all expenses, displaying the total savings at checkout, providing multiple payment options, and making shipping free. Return on Ad spends Return On Advertising Spend (ROAS) is an essential digital marketing metric for measuring the success of advertisement campaigns. It enables online businesses to determine which methods are profitable and how to enhance future ad campaigns. ROAS provides insights for budgets, tactics, and overall marketing maneuvers. Ecommerce corporations can best use ROAS to make wise choices on where to allocate their advertising funds and become more efficient. When combined with customer lifetime value, it provides a comprehensive view to make decisions on the advertising budget. It is possible to increase the return on ad spend (ROAS) by enhancing the mobile-friendliness of your website, using keyword targeting, incorporating geo-targeting, optimizing your landing pages, applying conversion rate optimization techniques, and offering seasonal promotions. Don't let the excess information overburden you with unwanted stress. Concentrate on important metrics to see fruitful results for your e-commerce business. Adyogi is a digital advertising platform customized for eCommerce brands. We can help track your key metrics and keep them in check in order to increase your revenue. We automate digital Ad creation to establish an automated prospecting, targeting, and retargeting approach that targets the client's merchandise and cross-promotes using cutting-edge technology, to boost sales. Get in touch to see how we can help you grow your business online.