The average order value (or AOV) is a key indicator in e-commerce that we want to increase.
It reflects the average value of an order placed in your shop and has a direct impact on the profitability of your business.
The higher it is, the more profitable each transaction becomes, without necessarily increasing your customer acquisition costs.
Even better, by optimising the average order value, you maximise the growth of your business.
The aim of this article? To provide concrete strategies to achieve this, in particular by promoting loyalty programs as a powerful lever for optimisation.
What is the average order value and how is it calculated?
The average order value represents the average amount spent by a customer when making a purchase in your shop. It is calculated using this formula:
AOV = Turnover / Number of orders
For example, if your shop generates a turnover of €50,000 by fulfilling 1,000 orders, then your average order value is €50.
Why monitor this indicator? Because it allows you to measure the performance of your shop and identify areas for improvement.
A low average order value can signal a lack of incentives to buy, a poorly optimised product offering or an unengaging user experience.
Why does increasing the average order value boost profitability?
Increasing your average order value is not just a question of figures, it is a strategic lever to make your business more profitable.
Better profitability per order: each order brings in more without increasing your customer acquisition costs.
Reduction in shipping costs per product: grouping more products in a single order optimises logistics costs.
Increase in overall margin: the higher the purchase value, the more you improve your gross margin and your cash flow.
Ready to take action? Let's discover together the 4 most effective levers to boost your average order value!
Lever No. 1: optimise your offer
The first lever for increasing the average order value is to optimise your offer, i.e. to structure your products in such a way as to encourage customers to add more items to their basket.
Playing on the perception of value with packs and bundles
Offering packs of complementary products is an effective strategy.
For example, one of the brands we support, Caps Me, offers sets of reusable capsules with various accessories, thus increasing the perceived value and the amount of the order.
Upselling aims to offer a higher or premium version of the product that the customer is considering buying, often at a slightly higher price. Using strikethrough prices or discounts on these premium options can make this strategy even more appealing.
Lever No. 2: purchase incentives
A little well-thought-out nudge, and hey presto! Your customers add more items to their basket without even realising it.
Free postage for orders over a certain amount
Offering free delivery on orders over a certain amount is a tried and tested technique.
For example, displaying a message such as ‘add €10 to your basket to benefit from free delivery’ encourages customers to add items to reach this threshold.
It is crucial to set this threshold wisely to maximise sales without reducing your margins.
Create a sense of urgency with limited offers
Time-limited offers, such as flash promotions or ‘limited stock’ notices, create a sense of urgency that pushes customers to act quickly.
Social proof, such as displaying the number of people viewing the same product, can also be used as a persuasive lever.
The power of progressive discounts
Offering discounts based on the total amount of the basket is another effective strategy.
For example, offering a 10% discount on purchases of €100 or more, then a 15% discount on purchases of €150 or more, encourages customers to spend more to benefit from bigger discounts.
It is essential to choose these discount levels in such a way as not to negatively impact your profitability.
Lever No. 3: the loyalty program
Loyalty programs are powerful tools for encouraging customers to increase the value of their purchases.
Why do loyal customers spend more?
Regular customers tend to spend more than new customers.
Trust in and attachment to a brand positively influence their purchasing decisions, encouraging them to add more products to their basket.
How does a loyalty program encourage more substantial purchases?
By offering bonus points for high-value orders, you encourage customers to increase the value of their basket. Clearly displaying the number of points the customer can earn for each purchase can also encourage higher spending. What's more, offering exclusive rewards, such as gifts or VIP access, for big spenders reinforces this dynamic.
And guess what? The more benefits your customers see increasing, the more tempted they are to add that little something extra to their basket to reach the next level!
Case studies of a brand that boosted its average order value through customer loyalty
Loyoly supports the brand We Are Jolies, which has succeeded in significantly increasing its average order value by implementing an attractive loyalty program offering exclusive benefits to its most loyal customers.
The brand offers customers the opportunity to earn points not only when they shop, but also by completing various tasks such as entering their birthday, becoming a follower on the brand's social media, or leaving online reviews.
In addition, a VIP tier system offers exclusive rewards, reinforcing customer commitment and a sense of belonging.
This comprehensive approach has enabled WeAreJolies to build customer loyalty while significantly increasing its commercial performance.
Lever No. 4, the user experience to maximise sales
An optimised user experience can considerably influence the average order value.
Facilitating the purchasing journey to limit abandoned baskets
A smooth and fast site reduces friction during the purchasing process, making the experience more pleasant for the customer.
In line with this, a simplified conversion tunnel makes it easier to add additional products to the basket, thus limiting the risk of abandonment along the way.
Rely on reviews and social proof to convince
Displaying customer reviews on product pages reassures potential buyers and gives them confidence.
And that's not all!
By using recommendations based on the purchases of other users, such as ‘those who bought X also bought Y’, you naturally encourage your customers to add even more items to their basket.
For example, the brand SI SI la paillette have a "Avis ✅" section on their product with videos of their customers giving reviews as well as a "Don't forget" section for cross-sell.
Si Si la paillette product page (reviews, cross sell...)
Offer payment facilities to encourage large purchases
Offering the option to pay in instalments at no extra cost removes a major obstacle for customers who are put off by high prices.
Solutions such as Klarna, Alma and PayPal simplify this approach and make purchases more accessible.
Paying with loyalty points also adds a new dimension by rewarding purchases and encouraging customers to spend more to take advantage of their accumulated benefits.
This is a solution facilitated by our loyalty programs that adapt to your needs.
3 mistakes to avoid if you want to increase your average order value
Increasing the average order value is an effective strategy, but be careful not to fall into certain traps.
An overly aggressive or poorly calibrated approach can have the opposite effect and scare customers away.
Here are three mistakes to avoid if you really want to boost your average order value.
1. Forcing additional sales in an overly aggressive manner
Nobody likes to feel that their hand is being forced.
Overemphasising cross-selling or upselling can detract from the customer experience.
If every click or checkout is a battle against pop-ups and intrusive offers, the buyer is likely to abandon their basket before even finalising their purchase.
The trick? Integrate these recommendations in a fluid and natural way, providing real added value.
Here is an example of one of our client doing it the right way.
Nébuleuse offer product suggestions on the right side of the cart allowing customers to project themselves with new products in their cart without being too pushy.
Nébuleuse cross-sell example
2. Offers that are too complicated or difficult to understand
Add an extra €50 to your basket to unlock a 15% discount, but only if you choose an item from category X and your order exceeds €120 after discount.’
Phew, lost? So have your customers. A promotion must be clear and instantly understandable.
If the mental effort required to benefit from it is too great, the user will simply abandon the purchase. Keep it simple.
3. Ignore the impact of returns and refunds
A high average order value is good, but the order still needs to be finalised.
An overly strict return policy or complicated refund conditions can put a brake on large purchases.
A hesitant customer will often prefer to order less rather than risk being stuck with a product that does not suit them.
A flexible and reassuring policy helps to remove these obstacles and encourage larger orders.
How can you increase your average order value in the long term?
Each lever presented plays a key role, but it is by combining several strategies that you will obtain the best results.
Optimising the offer, purchase incentives, loyalty programmes and improving the user experience work in synergy to maximise the value of each order and thus increase the average order value for each customer.
Now you have everything you need to increase your customers' basket value!
To go even further, setting up a loyalty program not only increases the average order value, but also improves customer retention in the long term.