Increase AOV While Protecting Your Business From Coupon Fraud.
by Matt Peck, on Jul 21, 2022 9:00:00 AM
As a business owner, you are probably not only aware of your average order value (AOV), but are constantly tracking it. As the average amount a customer is spending every time they make a purchase from your business, increasing your AOV is obviously a huge benefit to your brand. It not only decreases your customer acquisition costs, but also increases your customer’s lifetime value and your overall revenue. There are many strategies to increase your AOV from building loyalty and trust to offering incentives. We’ve compiled a list of some of the easiest ways below.
Before you get started incorporating customer incentives into your own business strategy, however, keep in mind that these opportunities can open the door to coupon fraud from browser extensions such as Honey, Rakuten, and Capital One Shopping. These sites share your coupon codes with customers outside of your intended demographic, which not only negates their purpose but can hurt your bottom line. A pro tip is to partner with a coupon fraud prevention site first before enacting any of these strategies. cleanCART’s software eliminates these coupon extensions from your site, keeping your AOV and profit margins safe from coupon fraud.
So now that you know how to protect yourself, here are a few of our top tips for increasing your AOV:
1) Create Order Minimum Incentives
One of the quickest ways to increase your AOV is to incentivize your buyers to add more to their cart. Creating an order minimum for free shipping is an easy way to do so. You can also offer other perks such as coupon codes for complimentary gifts or trial-size products once they hit a certain dollar amount. Sephora is a pro at incentivizing customers to hit certain spending thresholds, by offering free samples when they do so. This not only entices customers to spend a little more, but gives them an opportunity to discover some of their new or popular products.
Since no one wants to feel like they’re being upsold, you’ll want to be sure to do it in a way that feels helpful or genuine. By bundling products, discounting bulk orders, or offering other products that pair perfectly with what is already in their cart, your upsells will feel closer to recommendations instead. For example, you could offer matching accessories when selling a dress, a cleaning kit to go with a pair of sunglasses, or a dessert to a food order. You can also try upselling post purchase by offering coupons for buying similar items on future visits.
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3) Set Up a Customer Loyalty Program
In order to establish a worthwhile customer loyalty program, you need to understand what your customers truly want. For budget brands, a discount off of a future purchase might be a better incentive whereas luxury brands might want to consider something more lavish, such as a free item. Keep in mind that customer loyalty programs, just like any other discount or coupon code, can be targets for coupon fraud, so you’ll want to protect yourself first.
4) Personalize The Customer Experience
Use data to gain deeper insights into your customer’s purchases and use it to create an experience tailored to exactly what they’re looking for. For example, if they had a more expensive item they didn’t follow through on and purchased a cheaper item instead, you can send them a discount code for that larger purchase. Using targeted marketing emails and ads will not only make your ad spend more worthwhile, you can introduce them to items similar to their past purchases that they may not have realized you sold.
5) Gain Customers’ Trust
Highlighting positive reviews, case studies, or any other forms of social proof will allow your customers to feel secure purchasing higher ticket items from you. Placate any potential concerns they may have about their purchases by having a solid return policy and customer service team in place. Empower your team to answer any questions quickly and efficiently to resolve any issues that arise. Offering live chat is also a great way to eliminate concerns that pop-up while customers are still on your site. Making sure your customer support works as a well-oiled machine is vital to helping nip small issues in the bud before they become big problems.
Ultimately, your strategy for increasing your AOV should be personalized to both your audience and business goals. While providing incentives to your customers can play a vital role, it’s important to be proactive in protecting them. If you’re looking to keep your business’s coupon strategy safe, sign up now for cleanCART’s free 14-day trial to eliminate any potential threat of fraud.