April 9, 2020
Jewelry business has a little trick to increase Average Order Value

Jewelry business has a little trick to increase Average Order Value

Remember that huge UK
jewelers that we worked with? Yes. And how they did this scaling, this discount is this is it. This is the big thing. This is what they did. Can, do you want to talk them through that?
Yeah. It’s in the book, by the way.
Page 103. Yeah. So really, it’s a really lovely story. And I, so when I went to to work with
this big jewelry company, and they were telling me, and they had lots of high
street brand, lots of retail stores and it was, but we can’t
because the confidentiality. No, no. And so they said that their
whole business was driven by this one little technique, and it was all about getting the Average Order Value higher. And what they did is they said, well,
everybody came in to buy gifts, so buying a gift for that, one of the their partner,
and they would come in with say, a budget of 50 pounds, and they would say, okay,
right, if you spend 75 pounds, we’ll give you 20 pounds to spend on anything you want, and you know, so, and then they got to that point. So, and then when they got to, 70 pounds, well, actually if you spend a hundred pounds, you get 40 pounds off. And then when you do a 150
pounds, you get 55 pounds off. And when you get to 200 pounds, you get 80 pounds off, so the more they spend,
80 pounds of free stuff, isn’t it? The more they spend the more free stuff they got and as they add that free stuff they go you’ve got this much value in your
basket now, so you can actually get a hundred pounds of free stuff.
Yeah. And they kept on doing it and obviously they
worked out the, you know, the split, some of what they’ve pushed at what point the
basket size was, but they wouldn’t let you add things like watches
and things like that. It would have to be jewelry where they
got those higher margins. Yeah, exactly within certain ones. And so, they kept on doing
this, so they always have a reason to get people to spend
more, and honestly, they built that. That was their main promotional thing
that they did, and they built. Who it is? I’ve actually said, who it is in the book? Really? Oh my God. So you got to go and buy the book,
and find out who it is. Yeah. Or just ask us for a free copy. Actually got the book open in front
of me now and I can see the checklist. It’s actually, they’re
right in the middle. Yeah. But they basically, what they’re doing is
their incentive by people to spend more. I mean, it’s such a simple,
simple little thing.

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