Average Order Value is the measure of how much money a customer spends each time they place an order through your online store. It really is a simple calculation, divide the revenue by the number of orders placed in one single transaction and there you go, you have you r Average Order Value (AOV).
Your AOV can help an eCommece Manager measure:
- How effective your latest marketing campaigns were;
- Can provide insight into your customers buying habits;
- Can help you identity your more valuable customers.
Why Focus on increase your AOV? Magento states In many eCommerce markets, acquiring new customers is difficult and expensive, often requiring a significant investment in demand generation marketing and advertising. Increasing your AOV is one of the most effective and comparatively inexpensive ways to increase revenue and cash flow. It is not about pushing more traffic to your site, it is about ensuring those customers who are already visiting your site are increasing their order size.
Magent’s latest eBook Five Strategies for Success ” Increasing your Average order Value outlines 5 easy to implement strategies that Magento store owners can utilise to encourage their customers to spend more on their online store including:
- Product Bundles
- Up-Sell and Cross-Sell
- Customer Rewards
- And Recommendations
- Easy Returns
Download the eBook today!
For more information about the Magento Enterprise Tool Set give Balance a call on 61 3 94151463