As the cost of acquiring new customers continues to rise, increasing average order value becomes key to ecommerce growth.
By focusing on optimizing the orders of your current customers, rather than acquiring potential customers, you can increase your ecommerce store revenue by 300%, conversions by 150% and AOV (average order value) by 50%.
In order to increase AOV, it has long been a best practice to display product recommendations on your ecommerce site. But as email continues to be the #1 digital marketing channel in terms of ROI, marketers must strive to bring their onsite personalization experience to their customer's inbox.
Here are 3 ways to use email to increase AOV:
1. Send Personalized Product Emails
Bulk email newsletters simply don't work for ecommerce stores. Throwing the same handful of products at every customer is a shot in the dark, and you'll be extremely lucky if more than one product catches your customer's eye.
Sending relevant product recommendations based on past purchases, browsing behaviour, and email clicks ensures that every product you send to your customer has a chance of being purchased, ultimatley increasing AOV. It's been proven that personalized emails drive 6x higher conversion rates, and increase revenue by 760 percent!
2. Upsell Abandoned Cart Emails
No email is as personalized as an abandoned cart email. By leaving an item in their cart, your customer has shown their hand, showing you exactly what they're interested in. Email a reminder of what they left in their cart, along with a selection of personalized and related product recommendations. 35 percent of abandoned cart email recipients convert on your site, so don't miss this chance to upsell.
Once you're on to a good thing don't stop with just one message. Continue to send emails with the item, special discounts, and related products that your customer could also include in the order. Look at the series of emails Amazon sent me when I added a camera lens to my cart:
3. Volume Discount Email Campaigns
Sales campaigns are best done on email as it is the only channel where you can directly reach individuals. If you're running a sales on campaign on social media you have to compete with news, click bait articles, personal posts, and other brands. By using email, your sales message is 5x more likely to be seen than on a Facebook post.
However, sending a generic 20 percent off email won't increase your AOV. Offer volume discount or set a minimum purchase price for free shipping. When a free shipping threshold is offered, customers spend 30 percent more on average.
Don't forget to send more than one email. Counting down your sales through email creates a sense of urgency for your customers. Furthermore, it's likely your customers won't open every email, so increasing the number you send increases the chance your message is seen. Here are 5 ways to increase email open rates.
Email is the only direct digital marketing channel and it should be treated that way. Campaigns need to be personalized to be relevant to each individual customer. Emails that customers actually want to see dramatically increase open rates, click throughs, and most importantly boost sales.