For E-commerce businesses, AOV (average order value) is a crucial metric and needs to be optimized regularly. After two months of boosting bulk purchase promotions, IMP’s client has seen impressive growth in AOV. Let’s find out how they did it!
As a B2B business providing beauty products, IMP’s client wanted to increase order value and gain more profits. The first step taken by the brand was adding more products that match the specific needs of customers, which also made the website become a one-stop-shop to attract more customers and increase retention rate.
At that time, a free shipping policy was applied for orders that have values higher than AOV to encourage customers to buy more to save delivery costs. Besides, the brand also offered free gifts for certain order values in monthly programs.
After analyzing order history data, IMP discovered a fascinating insight that the majority of our client’s revenue comes from bulk purchases. Therefore, we corporated with the client to increase the number of high-value orders via bulk purchase promotion programs for these orders.
Specifically, we promoted communication for the discount programs applying for bulk purchases via email and advertising. For email, IMP created an automated email flow for cart abandonment sent to customers who are close to enjoying these incentives. The email conversion rate increased to 16%.
Besides, we ran ads for these discount codes on social channels such as Facebook and Instagram, retargeting current customers and targeting new customers.
After two months of implementing promotional programs for bulk purchases, our client’s AOV has increased more than 20%, specifically from more than $150 to $190.
More impressively, the number of customers using discount codes for bulk purchases in the latest month has increased by nearly 40% compared to the two previous months. Total revenues from orders using the discount codes also increased by 35% compared to the last month.
An increase in AOV indicates an increase in revenue and effectiveness in marketing, and it also shows that customers are satisfied with the brand. By constantly replenishing stock and implementing attractive offers, brands will be able to drive customer buying behaviour.
Have you applied the above methods to increase your AOV? Contact us for more information to increase revenue effectively!