April 8, 2020
Customer Aquisition Costs Rising? Get your Average Order Value higher

Customer Aquisition Costs Rising? Get your Average Order Value higher

If you think about the two ways to
increase your Average Order Value, it’s either more expensive products
or more items per basket. So all of these sit in
one or two of those. Those areas, I’m gonna, you know,
if things like the personalization. So when people will come back to
the store, you know, if you know what they want to buy, you know what they’ve been
looking at, you’ve made suggestions based on their previous purchases. I mean, you can tell we’ve
done so much work in this area because it’s such, like you said
before, it is such a game changer. So that’s, I mean, there’s It’s obviously very specific to every
retailer, but there’s a lot of stuff here that people can do. And if you’re sitting there going, “Oh,
my Average Order Value kind of changed.” You can change it and if you want to, you
will change it and then therefore you’ll be able to go out and you’d be able to
scale your revenue so much more easily than somebody who is just
selling the same product. Exactly.
Think about it. If you’re all, if you’re competing on
Google shopping for a particular product, everyone else is selling and you have got a
really slick way of getting that Average Order Value higher cause you’re doing
all the things we’re talking about. You can then afford to spend a little bit
more than these guys can on your cost per acquisition, so you win. Yeah. And you’ll be able to dominate. It’s so exciting when that happens and because you suddenly, you know, if you give like someone gives me an
AdWords account manager, and they suddenly go, “Oh, by the way, our ROAS is just
completely gone through the roof because our Average Order Value.”
You’re just like, wow. Well, let me go and bid on all this
stuff that hasn’t worked before. Yeah. It’s so awesome. That’s why the Average Order Value is amazing and that’s why you need, you cannot look at your
Google shopping in isolation. You have to look at it in conjunction
with the KPIs we’re talking about. And you can’t sit there and go,
“Oh, that campaign didn’t work. I’m gonna turn it off.” You’ve got to look at all the way through the bounce rate, the product page, the Average Order
Value, the lifetime customer value. It’s so, it’s awesome. But the Average Order Value one is
something that no one talks about, but it’s the first thing we talk about. Cause often the easiest,
cheapest, lowest hanging fruit. Yeah. Especially if you come and look at the
stats and your average add to basket rate is like 14-15% you’re like,
well, it’s pretty bloody good. So where’s going to come from? Yeah, exactly. How are we going to, how are
we going to read a scale. So it’s a big one.

Leave a Reply

Your email address will not be published. Required fields are marked *