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Sales·Jun 6, 2024

What average order value is and how to raise it

It is one of the easiest numbers to move and one of the most ignored. Raising how much each customer spends per visit can grow your business without landing a single new customer. Here is how.

What average order value is and how to raise it
Imagen: Unsplash

Almost every business is obsessed with getting more customers. That is fine, but there is another lever almost nobody touches that is usually easier to move: how much each customer spends once they are already in front of you. That number has a name: average order value, or AOV, also called the average ticket.

It is easy to calculate: divide your total sales over a period by the number of sales. If in one month you billed a hundred thousand across a thousand orders, your average order value is a hundred. The million-dollar question is: how do you get those same thousand customers to leave you a hundred and twenty instead of a hundred without feeling squeezed?

Why average order value is the cheapest lever

Getting a new customer costs money: advertising, time, effort. But a customer already in your shop or your chat has already cost you. Getting them to spend a little more on that same visit costs you almost nothing. That is why average order value is called the most controllable lever for growing revenue without raising what you spend to acquire new people.

Do the math for your business: if you raise your average ticket by 15% without spending an extra cent on marketing, almost all of that drops to your profit. It is one of the few improvements that pays for itself.

There is another reason to watch this number: it tells you things about your business that total sales hide. If your revenue went up but your average ticket went down, it means you are working harder for each dollar, serving more people to earn the same. And if the ticket rises, it can be a sign that your customers trust you more and feel comfortable taking more on each visit. It is a thermometer, not just a lever.

Tactics that actually work

This is not about pressuring people to buy more. It is about offering, at the right moment, something that genuinely adds value for the customer. These are the most proven:

  • Upselling: offering the better version of what they already want. The haircut with treatment, the cleaning with whitening, the extended consultation.
  • Cross-selling: adding something that complements. The wax after the cut, the maintenance product after the service.
  • Bundling: combining several services at a price that feels convenient. Bundles can lift the ticket quite a bit because they simplify the customer's decision.
  • Free benefit threshold: spend this much and get something extra. Many customers add one more item just to reach the reward.
  • Personal attention in the moment: a human, well-judged suggestion at checkout moves the ticket more than any sign.
The goal is to raise the ticket responsibly, not just inflate it. Twenty extra dollars mean nothing if the item you added cost you eighteen to deliver.

The threshold trick: a concrete example

One of the most used tactics is the free-benefit threshold. If your average ticket is a hundred, set the benefit (free shipping, an extra, a discount) a bit above that, say a hundred and twenty. Many people who were going to spend a hundred add something to reach the goal. It works because nobody likes to fall ten dollars short of the reward. Just make sure the reward costs you less than what the customer adds.

The other big driver of average order value is the person doing the serving. No sign sells like a human recommendation made at the right moment. The customer trusts an I would add this, it goes perfectly with what you are getting far more than any printed promotion. That is why it pays to train whoever serves (or the assistant that answers your messages) to suggest the right add-on without sounding like a pushy salesperson. The difference between a team that suggests and one that only rings up the sale can be double digits in your ticket.

Careful: a high ticket is not always good news

Here is the trap few people tell you about. Raising the ticket means nothing if you do it through discounts that eat your margin. If selling a hundred and twenty required giving away so much that you earn less than when you sold a hundred, you lost. What matters is not the ticket number, but how much is left after costs on each sale. Before applying any tactic, make sure what you add still leaves you a profit.

Start by measuring and with a single tactic

If you have never calculated your average order value, start there this week: total sales divided by number of sales last month. Having the number will surprise you. Then pick a single tactic, the one that best fits your business, and test it for a month. Do not run all five at once; you will not know which one worked.

Takeaway: average order value is one of the few numbers you can move without spending on advertising. Measure it, raise how much each customer spends with offers that genuinely add value, and always check that each extra sale leaves you a profit, not just a prettier number.

Sources

  • Triple Whale — https://www.triplewhale.com/blog/increase-average-order-value
  • Rebuy — https://www.rebuyengine.com/blog/how-to-increase-average-order-value
  • Paddle — https://www.paddle.com/resources/increase-average-order-value
  • Splitit — https://www.splitit.com/blog/customer-experience-conversion/the-ultimate-guide-to-average-order-value-aov/
  • Saras Analytics — https://www.sarasanalytics.com/blog/increase-average-order-value-ecommerce
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