Ways to Increase Your Order Value Using Magento
Increasing your order value in Magento is relatively easy to do and is a sure-fire way to maximise the sales potential of each customer without any increase in site traffic. It is an efficient way to boost revenue at a fraction of the cost of advertising and marketing.
Magento offers a whole range of tools and extensions that can be deployed and optimised to increase your order value. Some of these your site may already have installed but you may not be utilising whilst others may require an additional plugin to be installed.
A very effective tactic in all retail areas to increase order value is the method of bundling similar products together. By pairing items in your eCommerce store, customers who purchase a primary product can be offered discounts (or simply savings on postage and packaging) with common accessories. An example of this is if your site sells computers, typical add-ons may include a wireless keyboard, mouse or upgraded speakers.
Product bundling is an efficient way to incentivise customers by offering discounts and convenience and, in Magento, this is very easy to set up.
Using the Product Settings in your ‘Catalog’, you can easily create a bundle to sell on your site today.
Another very common but equally as powerful method in retail that works very effectively in eCommerce is the up-sell. By tailoring your service to recommend a similar product with a higher value when a customer is browsing your site, you can boost the order value.
Achieved via the Product Attributes feature in your Magento site, up-selling is easy to implement.
Similar to the idea of up-selling and product bundling, cross-selling is a great method for increasing order value on your Magento site by recommending additional products. Just like up-selling, you can automate the process of cross-selling and exploit these opportunities using the Product Attributes feature.
Generated user-specific recommendations for products based on their search query history, geographic location and past purchases, you can not only improve the experience for the customer but also get them to spend more.
This method of marketing is not new but is made very easy with eCommerce solutions like Magento. It is a powerful way of capitalising on those customers who are simply browsing your site who may not know exactly what they are looking for. Not only that but personalised marketing also adds another touchpoint for brand awareness and, using well-designed personalised welcome messages, can help boost reputation and trust.
You can implement these features in your own eCommerce website using extensions that are available in the Magento Marketplace.
On the back of personalised marketing comes another trusted and faithful tool for increasing order value, a customer loyalty/reward scheme.
Although there are some people who do not set much store by these schemes, there are plenty of statistics that support this method of incentivising customers. When implemented effectively, brand loyalty can increase regular support for an eCommerce store by as much as 69%. What’s more, these kinds of schemes often appeal more to big spenders than customers with lower spending habits.
By appealing to these kinds of users, incorporating a customer reward scheme within your Magento site you could significantly increase the overall order value.
There are several extensions available in the Magento Marketplace that can help you set up a suitable programme. There is also an easy to use point system promotions tool included within the Magento enterprise edition.
In exactly the same way as free shipping minimum order values can incentivise customers to spend that little bit more, free gifts can do the same. By offering a reward for customers who spend over a certain value, you could see revenue increase from your online sales.
Offer Free Shipping
We’ve all seen this method of enticing customers to spend more in order to qualify for free shipping in action and, more importantly, we’ve probably all been tempted to do so. In fact, a 2015 study by UPS shows that 52% of shoppers have added things to their online basket simply to meet the minimum order value for free P&P.
The effectiveness of this approach will vary depending on the kind of products you sell and the cost of posting and packaging costs. However, it is worth noting that 36% of online shoppers are put off buying something from an eCommerce site simply because of the shipping costs.
Not only can free shipping help boost the revenue from your average orders but it can also go a long way to avoiding the prospect of the ‘Abandoned Checkout’. According to the Baymard Institute and Statista, the cost of shipping is the top reason for customers leaving a site before completing a purchase.
Magento offers an enormous selection of extensions that can be used to offer your customers a range of shipping options including minimum order thresholds for free P&P.
Make Returns Easier
Another big reason for abandoned shopping baskets is the concern that customers have about shopping online and not being able to ‘see’ the products they want to buy. By offering a simple, easy and well-outlined returns policy you can help reduce this being an issue.
Free returns using a hassle-free process shows customers that there is less risk associated with buying a product from your online store.
There are some great extensions offered in the Magento Marketplace that can automate returns requests and help you manage the process.
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