5 minute read
Most conversion optimization wisdom says to get shoppers in and out of the checkout process as fast as possible. But by rushing shoppers to checkout, retailers are missing out on opportunities to increase their average order value. Here are 6 user experience strategies that will help retailers increase their AOV.
1. Make it easy to buy more
While it may seem like elementary advice, there is a lot that goes into making it easy for shoppers to buy more. And it’s something that some retailers miss.
When a shopper adds a product to their cart, pop ups and banners that dominate the web page push that shopper toward the checkout, encouraging them to convert as soon as possible. But you may be missing out on an opportunity to increase the value of that shopper’s basket. While you don’t want to do away with checkout pop ups all together, make sure it’s easy for shoppers to continue browsing.
A big part of making it easy for people to buy more is making it easy for them to find what they are looking for.
2. Improve your site navigation, search, and filtering
Nobody is going to buy something if they can’t find it. Retailers can help increase their AOV by improving their site navigation, search, and filtering.
Having an intuitive site hierarchy and navigation is a fundamental part of a good user experience. If it takes 4 clicks before a shopper can even see a product, you’ll be missing out on a big chunk of potential sales that left because they couldn’t find what you’re selling.
Site search is another helpful navigation tool, because it lets shoppers search for exactly what they are looking for. What’s great about site search is that it requires fairly little attention on the part of the retailer, just set and forget.
Product filtering is another excellent technique for helping shoppers find what they are looking for. While the usual filters like size, color, or brand are all useful, consider how you can push your filtering to the next level. Thematic filtering works by allowing customers to filter by certain themes. For instance, a women’s apparel company might let shoppers choose from themes like “party dresses” or “summer shirts.”
3. Let shoppers buy now and pay later
Ecommerce customer financing has been increasing in popularity over the past few years. That’s because more and more shoppers are looking make big ticket purchases online and want a payment option that allows them to pay over time without taking up a big chunk of their credit limit. Retailers can help increase their AOV by giving shoppers with a flexible, instant financing option.
Earlier in the year we conducted a survey of 1,500 U.S. online shoppers, with the goal of learning more about the common frustrations facing online shoppers and how non-credit card payment and financing options can influence the shopping experience. What the study found was that for some online shoppers, being able to finance their purchase was necessary to making the purchase. In fact, 15% of online shoppers had abandoned a big-ticket purchase because the retailer didn’t have a financing option available.
“What constitutes a big-ticket purchase?”, you might ask. Good question. We asked shoppers about the threshold at which they are most likely to use a financing option over their credit card – 15% say they would switch away from their credit card for purchases as low as $200 and 47% would make the switch at $500. And the percentage just goes up from there.
4. Create stunning product videos
One of the most difficult parts of shopping online is that you aren’t there to see the product firsthand, to touch it, smell it, try it on, and so on. While beautiful and professional product images are a must, some retailers are seeing even better success by including product videos as well.
A survey of retail brands such as Best Buy, Under Armour, and Newegg found that companies using product videos reported a higher AOV and high conversion rates. In fact, 57% of the retailers in the survey said that their AOV increased at least 50% for customers that watched the video on a product page – of the remaining 43%, not a single one reported a negative impact from videos.
There are a few best practices when it comes to creating product videos:
- Keep it brief
- Share it on social media
- Make the play button easy to find (relative to related videos nearby)
- Make sure it’s mobile friendly
Have a look at how SOUNDBOKS uses product videos. Below the product images there is a video, which features the reactions from 20-something-year-olds hearing the portable speaker for the first time. (Spoiler: they like it.)
5. Add a free shipping threshold
One of the oldest AOV-increasing tricks in the book is to use a free shipping threshold. Let’s say your current average order value is around $150 – setting a free shipping threshold of $200 might give shoppers the motivation to spend a bit more and save on the shipping costs.
But there is a caveat here. Not having free shipping is one of the leading reasons for cart abandonment. So, by setting a shipping threshold you may be increasing AOV at the cost of conversion rate. The solution is to A/B test the change, keeping an eye on not only AOV, but also conversion rate and overall revenue.
6. Use limited time offers
Using psychology to increase shopper motivation is a common tactic in ecommerce.
One way you can use psychology to increase AOV is by creating sense of urgency and scarcity around a product or promotion. When something is scarce people tend to value it more highly. Retailers can use scarcity to their advantage by setting limited-time promotions and letting shoppers know how many items are left in stock.
Check out how the sun-glass retailer SUNDAY SOMEWHERE uses scarcity to motivate shoppers. People that make a purchase within the next week receive an exclusive t-shirt while supplies last – scarcity of both time and quantity.
Get in touch with us to learn how FuturePay can help increase your AOV.