As you look for ways to increase your jewelry brand’s revenue, it’s a good idea to base your strategies on key performance indicators (KPIs). One important and popular metric to pay attention to is average order value (AOV). The higher your AOV, the more successful your jewelry business will be — so how can you grow that number to grow your business? In this article, we’ll take a look at how to increase AOV using five different tactics.
What is AOV?
Average order value (AOV) measures the average dollar amount that a customer spends per order. AOV is an important metric for jewelry brands to understand and optimize; a higher AOV indicates customers are purchasing more items (or simply spending more) in each transaction. This positively impacts your business’ bottom line since the fixed costs of fulfilling each individual order can be spread across a larger order size. Wondering how to increase AOV? Read on.
How to Increase AOV
Let’s explore five different tactics you can use to increase your brand’s AOV:
#1: Bundle Items
Boost your AOV by bundling your products. Customers love a good deal — package matching or complementary pieces together at an enticing discount. This simple strategy encourages larger purchases and makes purchasing easier and more appealing for your customer. For instance, showcase that dazzling green jade pendant with coordinating jade drop earrings, or show them how a few necklaces layered together makes a completely different look than one necklace on its own. With bundles, you easily demonstrate how customers can maximize your jewelry to achieve a great look. And you maximize sales with hardly any effort.
#2: Offer Loyalty Discounts
Customers love being rewarded for their loyalty. Offering a discount for your most loyal customers incentivizes them to purchase more so they can earn access to lower prices that other customers won’t get access to. They’ll be more likely to make purchases they weren’t already planning on making, since they’re being rewarded for their loyalty. They might even add another item to their order while they’re at it. Not only is this a great way to increase your AOV, but it also facilitates a more loyal and engaged customer base.
#3: Provide Free Shipping at Certain Order Values
Offering free shipping when customers spend over a certain amount is an effective strategy to increase average order value. With free shipping set at a strategic threshold, customers are incentivized to add more items to their carts to reach the minimum amount. This encourages customers who may have been on the fence about an additional item to make the call to purchase it in order to qualify for free shipping. The tactic essentially allows your brand to subsidize shipping costs, while giving customers the excitement of getting a good deal at the same time. In the end, the increase in the total order size from customers adding more products to their carts boosts their average order value, and you’ll likely save on overall expenses too.
#4: Suggest Add-on Customization Options
Your jewelry is already amazing, but when customers have the opportunity to add their own personality to the piece, they’re likely to love it even more. Right now, consumers are all about customization — an engraving, a birthstone, or even just the option of different metal types can go a long way. Giving your customers the option to customize their jewelry purchases as an add-on can increase your average order value and make your brand stand out in your customers’ minds for a stellar experience they won’t find elsewhere.
#5: Offer Jewelry Repairs
Providing jewelry repair services is another opportunity to boost average order value. At checkout, prompt customers to pay up front for future repairs like simple cleanings, polishing, or ring resizing. This shows customers you care about extending the life and beauty of their jewelry as much as they do. It's a value-add service that reminds them you're more than just a transactional retailer. With thoughtful reminders at key moments, customers are likely to take you up on repair offerings, which increases their final order total. Small service add-ons that provide care for cherished items can go a long way toward customer satisfaction and increased sales.
Are you ready to boost your AOV? Reshyne can help. Our all-in-one software is designed to help jewelry brands like yours offer jewelry repair services seamlessly and efficiently. The intuitive, white-label platform makes it easy for customers to place repair orders directly on your website and allows your team to manage orders all the way through to delivery. Schedule a demo today to find out how Reshyne can help you increase your average order value and make your business thrive.