In the ever-changing world of ecommerce, one number keeps marketers and business leaders on their toes: Average Order Value (AOV). It’s the unfailing compass that guides success in this dynamic digital world. Understanding its power is the key to thriving in the evolving digital economy.
AOV is a pivotal metric, measuring the health of your online store and revealing insights into customer behavior and preferences. One can say AOV is the lifeblood that keeps the revenue flowing and the business thriving.
What makes AOV such a crucial metric for marketers in 2024 and beyond?
The average order value represents the average amount a customer spends in a single transaction. It provides invaluable insights into purchasing patterns.
For ecommerce businesses, the average order value is more than just a number. It reflects your store’s performance, informs pricing strategies, and plays a vital role in calculating marketing budgets. Marketers and business leaders constantly seek ways to increase AOV, as it directly correlates with revenue and profitability. It enables companies to thrive and invest in growth opportunities. It differentiates between incremental growth and exponential expansion.
To know more about AOV optimization techniques, we reckon you look at our Retail Retention Playbook. Before diving into solving the average order value problem, it’s essential that, as marketers, we respect that term by understanding what the positive aspects of a high average order value are and what you can expect if your average order value is low. Let’s dive right in.
Five Inbox Commerce Use Cases to Supercharge Your Average Order Value
What if we told you there’s a game-changing solution on the horizon—a technology where your email marketing transforms into a revenue-boosting powerhouse? Inbox Commerce is a transformative approach to email marketing that enhances the online shopping experience within customers’ email inboxes. It leverages Accelerated Mobile Pages (AMP) technology to introduce interactive elements, real-time updates, and seamless shopping capabilities directly into email content.
On a sidenote – before we delve into the subject, let’s address a fundamental query: Why opt for email, the most conventional medium, among the myriad of available communication channels? It’s a valid question. The answer lies in simple common sense. It is essential to recognize that half of the global population relies on email. In this highly competitive environment, reaching out to customers through the overwhelmingly prevalent channel is an undeniable necessity. We have written a comprehensive blog explaining this concept; you can read it here.
With Inbox Commerce, emails are no longer static messages but dynamic platforms for engagement and shopping. Customers can browse products, make purchase decisions, and even evaluate options or chat with AI-powered chatbots without ever leaving their email interface! This innovative technology eliminates the need for users to navigate external websites, reduces friction in the shopping process, and provides a more convenient, immersive, and visually engaging shopping experience.
In essence, Inbox Commerce enables brands to connect with customers in their inboxes in a way that not only enhances the shopping journey but also fosters customer satisfaction and loyalty.
Here are five ways Inbox Commerce optimizes Average order value:
1. Personalized Recommendations via Triggered Emails
Inbox Commerce empowers you to deliver highly personalized product recommendations directly to your customers’ inboxes. By analyzing your shopper’s browsing history, past purchases, and preferences, you can tailor these recommendations to each individual. Moreover, send these personalized messages at the moment of highest intent, when they are about to drop via an abandoned cart email, or when there is a new collection available to shop for online, via new arrival emails. Connect the persona of the shopper that you have created with the product catalog that you have.
A new collection-triggered email powered by Inbox Commerce with in-built cart manipulation functionality
The result? Customers are more likely to discover and add relevant products to their carts, driving up their Average order value. With personalized recommendations, you create a shopping experience that makes your shoppers feel special. It makes them feel you understand their uniqueness.
2. In-Email Cart Management
One of the most significant advantages of Inbox Commerce is the ability to manage the shopping cart directly within the email. Customers can view, edit, and add items to their cart—all without leaving the email. This immersive and interactive experience not only enhances customer engagement but also leads to higher Average order value. When Inbox commerce makes shopping so effortless, customers are more likely to add multiple items to their carts during their shopper journey.
3. In-Email Search and Discovery
One of the standout features of Inbox Commerce is the in-email search bar. With this feature, customers can search for products without leaving their email. It makes the ‘search and buy’ shopping process incredibly convenient. In-email searches shine when customers are looking for specific items or are so determined to make a purchase they want to keep searching.
Here’s a typical inbox commerce email with an interactive search bar, cart manipulation, and add-to-cart features
In-email searches make it easy for customers to find what they are looking for, and they are more likely to add additional items to their cart while searching. An effortless and efficient shopping experience often results in higher Average order value as customers explore and discover products they might have missed otherwise. It’s like having a smart salesman right at the checkout counter.
4. Interactive Shopping Experiences via Accordions and Carousels
Inbox Commerce transforms email marketing into an interactive shopping platform. Brands can create email experiences that allow customers to explore product options, view images, read reviews, and even make selections within the email itself.
For example, customers can scroll through a visual gallery of products and click to view details that open up via smartly designed accordions and carousels.
With accordions, you can expand and collapse product details within emails and provide a compact yet informative view. This means your customers can explore product specifications, reviews, and images – without opening multiple tabs or leaving the email to visit the website for more product choices. It’s a game-changer when they must make quick yet informed decisions.
Carousels also let you scroll through a selection of products horizontally within the email itself. Customers can quickly browse various options, discover hidden gems, and easily grab irresistible deals.
5. Exclusive Offers and Bundles
Inbox Commerce is your gateway to offering exclusive discounts, bundle deals, and limited-time promotions directly within emails. These special offers can tempt customers to spend more on a single purchase, knowing they are getting a great deal. For instance, an email might feature a “Buy One, Get One 50% Off” promotion or a “Complete the Set” offer, enticing customers to buy multiple items together.
Showcase complementary styles using Inbox Commerce powered bundles, these are a creative way to increase AOV, and enhance shopping convenience
By providing such offers and bundles through Inbox Commerce, you not only drive higher Average order value but also create a sense of urgency and excitement, motivating customers to make immediate purchase decisions.
In a rapidly evolving ecommerce landscape, the significance of Average Order Value (AOV) cannot be overstated. AOV serves as a compass, guiding businesses toward success, revealing valuable insights into customer behavior and preferences, and acting as a linchpin for revenue growth. A robust Average order value, reflective of satisfied customers and efficient marketing strategies, paves the way for profitability and expansion.
Conversely, a low AOV can restrict growth opportunities, reduce profitability, and increase marketing costs. The quest for a higher Average order value is a priority for marketers and business leaders, and this quest has found a powerful ally in Inbox Commerce.
Inbox Commerce represents a transformative shift in email marketing, turning static emails into dynamic shopping platforms. This innovative approach not only simplifies the customer’s shopping journey but also enhances engagement and customer satisfaction. With personalized recommendations, in-email cart management, convenient in-email search, interactive shopping experiences, and exclusive offers… Inbox Commerce empowers brands to elevate their AOV and foster customer loyalty.
As we step into 2024 and beyond, the role of AOV in shaping ecommerce strategies remains paramount. Embracing Inbox Commerce as a game-changing solution is the way forward. It offers a dynamic approach to email marketing that can amplify Average order value, drive revenue, and create shopping experiences that keep customers coming back for more. The future of ecommerce is here, and it’s fueled by the innovation and convenience of Inbox Commerce.