How to Increase Your Average Order Value (AOV)
In this chapter, I want to talk about how to increase your average order value. At this point, you’re operating at a level two when it comes to acquisition aggression, and you understand that the maximum allowable cost per acquisition, the maximum amount of money that you can invest in acquiring a single new customer, is determined by your average order value.
The average order value needs to equal your maximum cost per acquisition. If we can increase our average cart value, you can increase the amount of money that you can invest to get a customer, which means you can get more customers to feed your back end even more and grow faster.
I want to cover the five primary methods for increasing average order value.
The first is to increase your main offer price simply.
Now, you may increase your main offer price, and you may, in the process, decrease your overall sales conversion rate. But if you aim to increase your average order value, you may be okay seeing your sales conversion rate go down a little bit.
You may increase your main price point enough to offset more than the decrease in the sales conversion rate, which can lead to a higher average order value. You might be selling a $50 product, for example, and you may increase the price to $60, and you may see a tiny decrease in sales conversion rate.
Ultimately you are generating more money per transaction, even though you decrease your overall sales conversion rate.
The second way to increase average order value is to increase the price of your add on offer or your upsell offer. These are the two easiest, quickest ways to impact our average order value.
I’m not saying that increasing the price will always increase the average order value. I’m saying that the quickest way to test what may have an impact on the average order value is to increase the price of your main offer and test increasing the price on your upsell offer.
The third way to increase average order value is to add another upsell or add on offer.
If right now, you’ve got one upsell before somebody comes to the thank you page. One of the easiest ways to increase the average order value is to add a second upsell.
Next, you should add a bump offer to the order form. Now, if you remember, a bump offer is an additional offer right on the order form that is usually presented with a couple of lines of text of copy, and it just requires the prospect to check a box and add the product or service to the order form, to their order. This is one of the most effective ways that I found for increasing average cart value. I’ll tell you that I don’t think we will publish another front-end campaign without having a bump offer.
In some cases, I’ve seen a 53% take rate on the bump offer on the high end. That means 53% of all customers took advantage of the bump offer. I’ve seen a bump offer add $10, $12, $15 of value to the cart.
Think about it like this for one second.
You add a bump offer. Let’s just keep things simple and say that that bump offer is $20. And that bump offer produces a 50% take rate, meaning 50% of customers take advantage of the bump offer. That means you just added $10 of value to the average cart value for every customer because of this bump offer.
That bump offer is worth $10 per customer. 50% of $20 is $10. That means every time a customer hits that order form, thanks to this bump offer. You’ve just added $10 to the average cart value. Very, very smart. Very, very easy, and something that we’ll be doing on every campaign going forward.
Finally, the fifth way you can increase average cart value is you can test a multi-option order form. A multi-option order form is just an order form where the prospect not only has the opportunity to buy or pay for what it is that you presented on the VSL page or the sales letter, but they can take a higher-priced option or a different option, a more complex or comprehensive option if they want.
And that additional option or options are only presented on the order form. They’re not presented on the VSL or the sales letter.
Let me show you a couple of examples of bump offers and a couple of examples of multi-option order forms.
What you’re looking at right here is an example of a bump offer. This is for one of our offers right here.
This is right on the order form for somebody that invests in the book. In one of my other books, How To Find Your Big Marketing Idea, right on the order form, they’re given the ability to add this, the big marketing idea, multimedia training bundle to their order. And it is $37. Now think about this. We are selling a $7 product. Now let’s say we get a 20% take rate. We have a meager bump offer, let’s say, right here, which converts a 20%.
20% of the customers that hit this order form and order take advantage of this bump offer. Well, 20% is over $7. 20% is $7.40. We’re selling a product for $7. And thanks to this order form, we’re bringing in another $7.40.
In this example, even if we were only at a 20% take rate, the bump offer is worth more to us than the main product is. Just from having this bump offer in here, we took the average order value from $7, without a bump up to $14.40. That’s the power of using a bump offer.
Now, in this next example, what you’re looking at is the multi-option order form. Now, on the sales page, the VSL leading to this order form, the sales page talked about this $7 option.
This is the first place the first time that they see these other options. And you wouldn’t believe how effective this can be at getting prospects to take a higher level.
Remember that we got them to the order form for the $7 version for just the video training only. We offer a $14 version to get the video training, the reference library, and the trading blueprints on the order form.
Or for $21, just a few dollars more than this, they can get the vacation trade, VIP training. And see how everything is included. You can see, rather than just having this $7 option, that if you add in a $14 option and add in a $21 option, a certain percentage of people will take advantage of that.
Based on what that percentage is, that can radically increase your average order value. On the next page is another example of a multi-option order form.
Here, you’ve got the standard subscription at $47. You can get the deluxe subscription, and a standard subscription includes digital-only, then the deluxe includes digital and print. This is interesting. It’s predictably irrational pricing. Then you’ve got this premium subscription, it’s got this normal price over here, and then it’s just $79, and you get the digital email website print as well as these three bonuses.
You see how the marketing and sales page, the VSL page that led to this, talked about this $47 standard subscription.
The first time the prospect sees this, these different options are on the order form. And you better believe that this increases the average order value, and in many cases, quite significantly.
Now you understand how to increase your average order value. You know how you’re going to use your average cart value to identify the most you should be willing to invest to get a single new customer.