3 Simple Ways to Increase Average Order Value – So You Break-Even on Ad Spend, Fast!

increase average order value

There are just two ways to increase your return on Facebook Ad spend. Firstly, you can boost your ad performance – to drive down your cost per acquisition (or CPA).

Or you can raise your average order value (or AOV), so that each new transaction generates more revenue.

Now in an ideal world, you want to optimise both your CPA and your AOV. But today I’m going to focus only on the AOV side of the equation – by sharing 3 simple ways to increase average order value. 

1) Raise your Front-End Offer Price

The quickest and easiest way to raise your Average Order Value is to increase your front-end offer price. Pretty obvious, right? 

Trouble is, when it comes to price-setting – Facebook Advertisers often make one crucial mistake. They create an offer, and then set their price based on what their competitors are charging for similar offers. Or worse yet…

…they set prices based on finger-in-the-air guesswork. Which means – more often than not – business owners aren’t squeezing even half the revenue juice out of their core cold traffic offering. 

So here’s what you should do. 

Step 1 – Set a price that lets you hit your breakeven (or profit) goals. 

Step 2 – Raise the perceived value of your core product – by adding more valuable content to your front-end offer. (I explain this pricing method in more detail >> HERE). 

Simple! 

2) Order Bumps

Order Bumps are a great way to increase your Average Order Value BEFORE new customers complete the checkout process. For an Order Bump to be effective it should:

  • Enhance the effectiveness of the product your prospect is about to buy
  • Be at a price that feels like a no-brainer deal – and which feels like a pain-free investment when paired with the core product 
  • Have a deadline (e.g. buy at this price today only)
  • Provide a clear and easy-to-understand benefit. (You don’t have much space for reams and reams of copy)
  • Stand out on the checkout page – and be super easy to add to the order. (Don’t make your customer jump through hoops to buy your Order Bump. If you do, they may abandon their cart completely).
increase average order value

Here’s why order bumps work so well. When a prospect is about to enter their credit card details, it means they’re in a buying frame of mind. And so, they’re extremely open to accepting a great deal. All you have to do is make them a no-brainer offer – and there’s a good chance they’ll say yes.

Especially if your checkout platform gives you the option for one-click order bumps…to make it seamless for customers to add extra products to their order.  

3) In-Funnel Upsells

What’s the difference between an in-funnel upsell and an order bump? Well – unlike the order bump – an in-funnel upsell happens AFTER your prospect has completed their initial purchase. 

It means, they’ve already entered their credit card details and placed an order. They’ve moved from being a prospect, to being a paying customer. 

Now, most people expect to see an Order Confirmation page or Thank You page after buying online. In fact, they’re probably looking out for exactly that – to make sure they haven’t just fallen for a scam.

Which presents you with both a huge opportunity to increase your Average Order Value – and a potential minefield. Let’s start with the opportunity.

Right after making a purchase, you have your new customer’s full attention. That’s because they’re eagerly waiting to read the next screen – to make sure they’ve not just ordered 10 kg of prosciutto instead of a bottle of wine.

Upsells allow you to capitalise on your new customer’s attention, by showing them another offer at a time when they’re highly likely to read your copy. That’s not all. 

Your customer is also in a buying state of mind (similar to the order bump scenario). They’re already sold on you and your product, and so you don’t need to work as hard to win them over with another offer. 

It’s also likely that they just experienced a huge dopamine hit after buying a new toy. Which leaves them open to buying from you again…if you show them a great deal.

But now for the potential upsell minefield. I already mentioned how new customers are nervously waiting to see their Order Confirmation page. That’s because they want to assess whether you can be trusted. Or if they should call their credit card company, sharpish! 

So what do you think might happen if you redirect buyers to a shouty upsell page…instead of the Thank You message they were expecting?  

That’s right! They’ll have a small heart attack and think you’re a scammer. So, make sure your upsell copy briefly acknowledges your customer’s purchase – before transitioning to your second sales message. 

 

I see a lot of Facebook Advertisers dedicating all their time and energy on lowering their ad costs, by learning new hacks or running never-ending creative tests. But here’s the reality.

The advertisers that win are NOT the ones who drive their ad costs down into the ground. The advertisers that win, are the ones who can afford to spend MORE on their ad campaigns – without losing the shirt off their back.

And how do they do that? By raising their breakeven point with a higher front-end Average Order Value.

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