AOV often takes a backseat to conversion rates and traffic. Yet, it’s one of the easiest levers to pull for bigger wins, and understanding and leveraging its full potential can be a game-changer in driving business success. When brands push beyond the expected—bundling with intent, turning AOV into a challenge, and rethinking customer incentives—the results aren’t just higher cart totals but stronger brand affinity and long-term growth.
Here, we explore underestimated strategies supported with compelling data that reveal the hidden power of AOV:
McKinsey has found that personalization provides distinct, tangible advantages for companies: It can reduce customer acquisition costs by as much as 50%, lift revenues by 5-15%, and increase marketing ROI by 10-30%. Leverage customer loyalty data to personalize offers that encourage higher spending. How? Tailor product recommendations and discounts based on past purchase behaviors and customer preferences. Or create segmentation based on customer attitudes and prioritize customer satisfaction based on the overall journey rather than individual touchpoints.
Dynamic pricing strategies are a valuable tool for adjusting product prices according to demand, customer behavior, and competitive positioning. By implementing this approach, businesses can enhance revenue per transaction through personalized discounts or premium pricing on exclusive items. The focus should be on intelligently modifying prices to inspire higher-value purchases while maintaining healthy profit margins.
Recharge's 2024 insights report states that a typical brand's subscribers placed 4.4 orders each over the past year, up 15% from the year before, a strong signal of their buy-in to the subscription model. Encouraging customers to commit to subscription or membership models leads to more substantial, regular transactions. Offer exclusive benefits, discounts, or access to limited products for members to increase customer loyalty and AOV consistently. A recurring revenue model benefits cash flow, yes, but also strengthens long-term customer relationships.
Seek out complementary businesses or halo brands to kindle new possibilities. Cultivating partnerships with other B2B companies can open doors to a wider audience and pave the way for joint ventures that elevate your average order value. Case in point: the award-winning Beautyblender team recently collaborated to make the limited edition Beautyblender Pink Hulken, a versatile and stylish travel companion for makeup artists, hair stylists, and creative professionals on the move.
While bundling is a well-known tactic, creative bundling takes it a step further, adding perceived value and deepening customer engagement. Instead of the usual product pairings, consider unexpected combinations that enhance the customer experience. For example, a skincare brand might bundle a best-selling face serum with a free virtual skincare consultation or exclusive content access.
Ignite a sense of urgency and exclusivity by unveiling limited-time product drops solely for your most valued customers. This powerful strategy can not only drive swift sales but also elevate your brand's perception of exclusivity and worth.
🖌️ Beautyblender's Rapid Optimization: Beautyblender's previous eCommerce store had failed to adhere to industry best practices, resulting in an inefficient system for managing updates to their website's products, content, and promotions. By restructuring the product map to a "parent-variant" solution, the UX was instantly more engaging, site speeds increased as well as the efficiency of data feeds for ads and retargeting campaigns.
The team at UN/COMMON made iterative design changes with a keen eye for detail, enhancing the user experience and giving the website a fresh look. They redesigned the homepage from top to bottom. Exploring every avenue for growth, alongside implementing up-selling and cross-selling to boost AOV, UN/COMMON identified an opportunity to optimize on-site search in a way that best aligned with Beautyblender’s product assortment.
The Results? A 18% increase in AOV and 20% increase in revenue. 🔗 Read the full story 🔗
A study by Forrester Research found that upselling and cross-selling are responsible for 10-30% of eCommerce revenues. "Experiential upselling" refers to a sales strategy where a business uses a customer's in-person experience to encourage them to purchase a higher-tier product or service, often by highlighting the added value and benefits of the upgraded option. Move beyond straightforward upsells by integrating experiential elements. Offer customers a chance to upgrade their purchase with an experience, such as a virtual event, a workshop, or access to exclusive content. For instance, we've seen health and wellness brands offer online yoga lessons and meditation sessions as part of premium package upsells.
Encourage your customer base to participate in competitions that increase purchase totals. A brand can do this through social media campaigns where participants share their carts with specific hashtags or tag friends, increasing visibility and fostering a sense of community and friendly competition. Liquid Death buried the competition…literally with a casket cooler auction and collab with YETI. It was bold, weird, and precisely what we love about working with brands that aren’t afraid to push the envelope (or, in this case, the coffin).
Implement a tier system where customers unlock different level rewards based on their AOV achievements. These can range from small discounts to exclusive access or limited edition products for higher tiers. Such a system incentivizes customers to spend more to reach the next level, increasing your overall AOV.
Create narratives around your challenges that resonate with customers' aspirations or lifestyle goals. Psychologist Jerome Bruner discovered that when stories are used to communicate a message, people remember them 22x more than facts and figures alone. According to another study by Harvard Business Review, emotional connections are significant drivers of brand loyalty and a top indicator of future customer value. Customers are also more likely to recommend a brand when they have an emotional connection with it. By connecting emotionally, customers are more inclined to increase their spending as part of their journey with the brand.
Appeal to the eco-conscious consumer by offering sustainable options as an upsell. For example, you could offer products with recycled packaging or donate to a green initiative for purchases over a certain amount. This would align with consumers' values and incentivize larger purchases. Shopify notes a study that found 28% of US participants consider the environmental effects of delivery methods when making online purchases. The purchasing power of sustainability-focused consumers is evident.
Focusing on AOV shouldn't be limited to the checkout process alone. By optimizing the entire customer journey— from the first touchpoint to the post-purchase experience—brands can personalize product recommendations at every stage, ensure clarity in product descriptions, and offer seamless return policies that instill trust and encourage purchases. At UN/COMMON, our strategists excel at unlocking business potential.
In the crowded D2C space, playing it safe won’t cut it—unconventional AOV strategies are where the real wins happen. Forget just nudging customers to spend more; the real magic is in crafting experiences that feel personal, gamified, and undeniably engaging. It takes time, effort, and resources to see drastic improvements. So, start small. Pick a few of these AOV-boosting strategies to begin. Then, as you observe positive changes, layer more into your approach. The brands that tap into this now won’t just see their AOV climb; they’ll build a community that keeps returning for more. Let us know how we can help!