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12 Strategies to Boost AOV During BFCM

• Vira Sadlak & Andriy Boychuk • Season 1 • Episode 173

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173 - In this episode, our hosts, Vira and Andriy, break down twelve proven strategies to boost your AOV. Tune in for expert insights on effective product bundling, subscription optimization, and more!

Watch the full video here! 

You’ll Learn

  • What AOV is and why it’s so important
  • The factors that influence AOV
  • The one thing to fix to cut your abandoned cart rates
  • A time-tested strategy that organically boosts your AOV
  • The right way to bundle products 
  • How to take your subscriptions to the next level
  • The difference between bundles and bulk - and what you should choose for your business
  • How to leverage your loyalty program to boost your AOV
  • How to upsell during and after checkout
  • Why you should invest in a referral program for your business

Resources Mentioned in This Episode


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Vira:

Hello everyone and welcome back to Email Einstein. We are your hosts, Vira Sadlak and Andriy, say your name yourself because I know you're very particular. Andriy Bojchuk. Yeah, we, we learned that about you on our last podcast that you're very particular about the way the people are pronouncing your name. So I just don't want to make any mistakes.

Andriy:

No, no, listen, I made fun on the last episode. I'm not particular. You people call me different names even somehow they even try to put X in my first name spelling. So I think it's mis typo. But it's very interesting always to see to, to see how people spell.

Vira:

Where do they put X? Boychooks?

Andriy:

I don't know. Or like I don't know. I thought it was a like typo but people call me something like John. So that thing is. It's weird. Like it's probably the. But I'm not. Yeah, I'm good with it.

Vira:

Agree. So in today's episode we will be talking about 12 amazing ways to improve your AOV. Your average order value. For those of you guys who don' what the AOV is. The average order value formula is pretty self explanatory. It's basically brands total revenue divided by total number of orders. That's it. It's like simple as that but it's actually a good identificator of whether or not your business is healthy or whether or not you're doing something right or something wrong. And obviously you always want to get that AOV as as high as you can. So Andriy, before we go to all of this, 12 amazing tactics that we're going to share with our customers. Why people care about AOV. What's the fuss about?

Andriy:

As you just said, the healthy business. It's one average order value of your of your business. Like always increasing. It can be like small increase but it's very important it does not decrease because you're doing something wrong. Because higher the average order value, more profitable you are. And a lot of clients comes to us to help them with average order value because email marketing, AKA retention marketing, one of the channel of retention Marketing is the best way how you can increase average order value with cross sells, upsells and other different strategies. And some of them will be 12 most popular strategies. How to increase average order value we'll be discussing today.

Vira:

Yeah, that's what we will be discussing today. And you guys, you, you should, you should understand that average order value, it's like affected by like so many factors by variety of fact like marketing and pricing of your marketing that customer segmentation, delivery options like customer loyalty and all of this aspects we will try to cover in today's episode. But AOV as you could already understand, it's super important especially now when the cost of acquiring the leads is getting higher and higher. So let's start from the basics. Good old free shipping. Why should businesses care and why it's a way to improve the AOV. Andriy.

Andriy:

So here's a caveat. It's not just free shipping, it's free shipping. For example Amazon, Amazon doesn't have a free shipping. There's two options. Either free shipping with a subscription of price subscription or there's minimum threshold of $35. So I will assume I might be hundred percent wrong. But this I will assume that like Amazon's average order value might be $30 or even $25. And they said okay, this is our, this is how we will improve our average order value. That's why they put it $35 as their minimum for free shipping. So basically they incentivize person to spend more to save on the shipping.

Vira:

Right, Right. And I mean you know that abandonment card most often or very often happens because of that like little shipping cost at the end. So offering free shipping can actually help with cart abandonment issues as well, but can structure it differently. So for example, just like Andriy mentioned in Shopify or in your platform that you're using, there are ways with some certain apps to do that free shipping threshold. Right. So you can automate this process that customers have to reach the certain threshold. And after that threshold the shipping will be free. I don't even think you need any special apps for that. I'm pretty sure you can do that with Shopify as well. Just like different apps, they help you communicate that properly. You know, some apps have this little bar at the top that shows you like how much you need to like add to your cart to basically reach that free shipping status. But also there are like some really cool apps that will help you to like upsell and cross sell products to basically reach to that free shipping status. And we will definitely talk about the upsell and cross sell. In this podcast today, one of my favorite examples that I probably like used in like a lot of, in a lot of episodes we have this a brand called Kits. It's like a Vancouver brand. They sell glasses. And we like literally talked about the glasses example with Andrea in our previous example in our previous podcast. But they do have this promotion get a first pair for free, but they actually charge you for shipping. So I got my first pair of glasses for free. It was like $129 worth of glasses, but they were for free. But with all of the upgrades that I got, I purchased like special lenses, I purchased the case, I purchased like different things to take care of my glasses. I purchased like second glasses for 50% off. Well, I ended up spending like $200 for the glasses I didn't even need. So sometimes you can like play with shipping, right, to increase that average order value. And just like you Andriy said, it doesn't even have to be like a free shipping. You can just like be creative with like introducing, introducing trash hauls and stuff like that.

Andriy:

Yes.

Vira:

Okay, cool.

Andriy:

By the way, in this episode we go through the freebie that we have on our website. So you can simply go to flowium.com/aov and download this kind of 12 strategies. They're very descriptive with example snapshots from different websites, from different email so you can see yourself. And also if you, I mean on YouTube will probably show those examples. But if you're listening, we strongly recommend users check out the YouTube video or go to download this, the checklist.

Vira:

So strategy I wanted to talk to you about number like strategy number two and it's a very popular one. We talk about it all the time. You people know the strategy. You love this strategy. But probably like a lot of you, you don't realize how powerful the strategy is when it comes to increasing that average order value. So good old bundles bundles are amazing for getting that AOV up. And for those of you who don't know what bundles is very self explanatory. But it's basically when you're like taking a few products together, you put them together, maybe you discount the overall price of this three products, sell them for less, but it's still more than the average order value than your customer would normally spend. A bunch of benefits this strategy have, it increases your sales. You can increase the awareness of new products. Like a lot of brands that I shop with, they basically bundle up their bestsellers with their new products. So this is their way to introduce new products to the customer. You can also avoid some waste. If you have low inventory or slow moving inventory, you can bundle up your best sellers with slow moving inventory. There's a bunch, a bunch of benefits to this strategy. But basically the magic of bundling is that consumers get an authentic sense of that getting more for less money. It's a bit of a marketing game, I guess, but while increasing the average order value, your customer still feels good about getting a value. Andriy, what do you think about the strategy?

Andriy:

Yeah, I mean it's like same thing with a free shipping. Like you want to come up with something that little bit more than ever. Either a little bit more or much more as a average order value. I like a GoPro example. I mean if you go to simple GoPro website, so it's not as dramatic, but if you want to go, go to different stores and buy GoPro, let's say like Amazon or ebay. I like those examples where they just show the GoPro by itself. It's like like 399 and show the GoPro and like 25 different like additional things that you like small things. And it's like $50 more and you're like for $50, so many pieces. And I did that, I bought it. I used probably only one piece of that of those like like crazy amount of things. But in that case I kind of, I spent more. So average order value went up and how I recently hear somewhere during some either presentation or some training. So the bundling needs to be complementary at something that kind of low cost for you. It was a high margin, but the perceived value of it is much, much higher. Vira, I believe in the last episode you were mentioning something about the. Or maybe Andrea was mentioning the, the bag.

Vira:

Yeah, the. Andrea was talking about the example of a bag. When you're like purchasing like a certain amount of products from like certain brands, they are giving you this like a bag for free with like freebies. You have to reach the certain like threshold to qualify for that freebie. So you have to spend more to get the freebie. But then once you get that bag, you're using it every day. It's like a good reminder for you about the, about the brand because like you are literally seeing it on your countertop every day. So yeah, it's a good way to approach things. And we also mentioned this example previously. But the way you sort of like market your bundles is very important. I've tested it with multiple of my clients with multiple bundles that we've done. So when we are saying like get x percent off for this certain bundle for most of my clients, it performs not as well as when we say like get two products. Get. Get two products and get the third one for free. So basically it's like the same, the same thing, the same or like a similar offer, just like different wording, different like design, different copy it. And people do respond better to that like freebie thing. But yeah, obviously it depends on your audience, who you work with and what they respond to really well. Okay. The third sort of like way to increase your average order value is also no brainer. Especially if you are selling the products that people are coming back to buy again and again and again. Subscriptions. Subscriptions is like a model. It's not a new model definitely, but I've seen like a big growth in this business model over the last few years. Andriy, tell us more about this model, like briefly for those of you who don't know.

Andriy:

Sure. So here in this example, to increase average order value, I strongly recommend if you have option in your own business to add a subscription or you currently have a subscription to add another tier of your subscription. So you might sell juices, for example, and you have 10 subscript monthly subscription for 10 bottles and let's say 20 bottles, which is double and double might be a little bit che, but by default the average order value will be increased because they are ordering from that second tier subscription.

Vira:

Right. No, I love this business model. It just owes its success to the convenience for both the business because pretty much you can predict your revenue which makes this business model so, so beautiful. You can predict your revenue, you can predict the inventory that you need to have in stock. But for me as a customer, it has also a bunch of benefits because favorite product is being delivered to me on a monthly or weekly or like yearly basis. I don't know. I love this model. I do have to say I had to unsubscribe from a lot of brands recently just because I'm trying to save money. And the only physical product that I'm still receiving to my door every month is the coffee. I got this amazing African coffee. It's Kenyan coffee and it's the best. But it's the delivery directly from Amazon. And I actually got it after we came back from Africa because I did enjoy, yes, I did enjoy their like, it's. It's like the most, it's like the most basic like unbranded thing ever. But the coffee itself is really good. I'm like, I can tell. I'll have to find it on Amazon because it's like it's unbranded. You're like literally receiving just like a clear plastic bag of whole beans and. Yeah, but it's good. It's. It's. It's really good.

Andriy:

Send it my way. Because I'm a big coffee fan, so. So typically I drink lavazza, but I would like to try something new.

Vira:

Now. This one is good. I'm gonna send you the link after the call for sure. Okay, cool. So do you have any like subscription services that you are getting? I know your kids are getting like the subscription for books or something, but do you have any subscriptions?

Andriy:

No, like from, from brand. Individual brands, like brand stores? No, I don't. I used to have a better brand. One of our clients, the protein bagels, but I, I ate them so me that I was. I'm just sick and tired of them. So I, I took a break. But I do have a lot of subscription on Amazon and it's mostly household things. It's like dishwasher pods, that detergent coffee and my vitamins. And it's a cool thing that I, I have all data in Amazon so I can like space it when the last time I order. So I was like every four months. And I find out another thing about Amazon which I was not aware. They give you 5% to start subscription, but after third automatic order it goes to 10% off.

Vira:

I didn't realize that.

Andriy:

Yeah, so you need. It will not help you with average order value, but it will help you with lifetime value of the customer. Because you incentivize them. Yeah, you incentivize them to stay longer.

Vira:

That's cool. I didn't realize that. I've been subscribed to that coffee for a while now and I didn't realize that they had 10% off. They probably need to advertise. Advertise better because I would be their customer anyways. But 10% sounds like a good incentive to me.

Andriy:

I'm not sure if it's available on all, but so far I saw on all Amazon prime prime subscriptions.

Vira:

Yeah. Cool. Okay. Well, one more popular strategy that a lot of brands are using is offering products in bulk. Andriy, what's the key? Can you explain like what's the biggest difference between like offering products in bulk and like bundles? Just like so we understand the difference.

Andriy:

Sure. So bundles, I would consider something that the brand combine and tell you, like here's a bundle. Buy it and bulk offer this. It's meaning you can kind of combine it yourself. And because you order so many of the same T-shirt or in the company. In our company we send. When some start working with us we send this like free to focus planner from Mike Hyatt company and they have different tier. So if we buy five planners it's like 5%. If we buy like 20, it's just bulk. So you buying the same product but more of it. So it's mostly for something consumable. Some closing brands have it. We recently bid on a true classic brand and they are every like everyday wear for men's and they have a lot. If you go to their store you can build your, your. Your own kind of package. Yeah. And they will discount you based on that how many products you it. So it's very, it's very similar but depends how you kind of present to your customers.

Vira:

Similar idea though. Like the more you buy, the more you save. Kind of like you encourage your customers to spend more. Yeah, you encourage your customers to spend more. Just like to kind of save more.

Andriy:

There's a quick story about the more you buy, the more you save. So there's like cool advertising on our radio about Disney, some Disney new park or theme park and that. And at the end they are saying so you should start saving now. Like you know, because it costs so much that you should start saving now for that like trip to Disney.

Vira:

Maybe that's not what they meant. Maybe they meant like you should start saving now. So we are like giving you discount for this, for this vacation or something. So you should start saving. I don't know. It's just like one thing.

Andriy:

They didn't advertise any discount unless I missed it.

Vira:

Yeah. Because there is like, there's like a lot of memes going on like TikTok, TikTok and reels about like it's called the girl meth. Um, so basically when you like there's this girl that says like honey, I bought three T shirts and I. And I saved $10. So it means that I made $10. So that's, that's pretty much like I, I made, I brought $10 to our family budget. He's like, no, that's not how it works. But like in, in my mind very often this is like exactly how it works. And I love it.

Andriy:

You know that game like when you give somebody 20, they give you 10 back and you give the five back and it's like at the end it's like, here's 20 for you, 20 for me. And it's like I should, I need to find that video. I'll send it to you. It's like so confusing.

Vira:

Very confusing. It doesn't even sound legit. I don't know. Well anyways, loyalty programs is tactic number five. Loyalty programs, it's basically like a lot of brands use them to encourage customers again to spend more and build their loyalty towards the brand. And I'm sure you guys might be a part of like a lot of loyalty programs. It's when you're like collecting Starbucks points or when you're like collecting discounts with certain brands or when you're collecting different like stars or like free free shoes. I remember there was this like promotion with one of the shoes brands I was shopping for. So Andriy, what's like what's the deal with loyalty programs and how they can help you to increase the AOV?

Andriy:

Yeah, so loyalty program, in most cases it's all, it's it's greatest tool for retention and lifetime value. But how you can increase AOV so they order more. So you can put different threshold. So for example if you order between 0 to $50, it's like 1x point. So for every dollar you will get 11 point. But if you spend, spend let's say 51 plus it would be 2x points. So you encourage them, you kind of incentivize them to spend more for more points which and those points they can redeem like later. Not all loyalty program has this option but the platform loyalty lion, they do have it. You are able to set up those kind of rules and you can run it on autopilot. So it doesn't have to be, you don't have to change it every time. But you can set up those threshold. Let's say if your average order value $50, you can put it to 55, 60, $70 to X point and see how your AOV will grow.

Vira:

I found this actually study about the company called Organifies. It's like a juices company or supplement company or something. And they actually said that they are reward redeeming members. They were 3.70 times the average order value of those customers or their orders were 3.75 times more than they are non redeeming members. So basically customers who was like redeeming their points or they were like working towards achieving that goal or achieving their reward, their average order value was like 3.70 times higher. So the loyalty programs they do work but you just need to find the right way to motivate your customers to. To spend more, to earn more. Basically it just like adds that like little layer of gamification and yeah, I love a good loyalty program. Actually I'm like right now I have the McDonald's app and I've never went to McDonald's. I maybe went to McDonald's like once a year before I got the app. But now they introduced this Monopoly game where you get like the stickers and then you have to enter the discount code from the stickers and it's like embarrassing. But I've been to McDonald's three times this week just like to get that sticker because I do want that like universal, all inclusive Universal studio vacation. Even though I've been there like three times, just like I still want to. I bet on it.

Andriy:

Buy iPhone for $1200 and get Apple sticker.

Vira:

Apple sticker, Yes. I just, I saw this real video. I should stop hanging out on social media so much where they just like took this box from like the apple from the iPhone. And they say like a lot of people don't realize that, but if you open the box like, you know, there is like this like thing where they put the phone on, but if you open it, there will be free AirPods ins like inside. I did believe it and I was like, my husband was like, are you for real? How cool would that be? But I mean, they don't even give you the adapter anymore, so I don't think they would give you.

Andriy:

It's like when, when I heard some guy created the, the app on iphone when the app creation was popular, that thing back in the days and he created the traffic light switcher. So like when you turn it on, the lights are switching, switching to green.

Vira:

Well, actually I'm learning something new about like iPhone every day. You know Harry Potter. Are you, you like the part of the Harry Potter craziness?

Andriy:

No. I know there's such a thing.

Vira:

Yeah, there are like some certain, like magic spells. For example, when you're like saying Lumus, the light goes on. And check this out what I learned guys. If you're like watching us on, on YouTube, definitely like come closer to the screens because it's pretty, pretty cool. Hey, Siri. Lumus. You see?

Andriy:

Oh, it's like live.

Vira:

Oh, sorry, my. You don't see. It's basically turned on the light. It turned on the light on my phone. It's just. Yeah, it's hard to see because I have like a lot of light. Yeah. So.

Andriy:

Oh yeah, I see. Nice.

Vira:

It's pretty cool. Yeah. And so basically iPhone understand basic Harry Potter spells. Yeah, it's. It's pretty cool, you guys.

Andriy:

Yeah. So it has nothing to do with AOV but it's just pretty cool.

Vira:

Nothing to do with AOV, but just like a cool thing. Like a lot of things you can learn on TikTok you guys. A lot of very useful things. Well anyways, getting back to our topic, another excellent way to improve your AOV is to upsell during or after checkout. Tell me more about it, Andriy.

Andriy:

Sure. So basically you want to. It doesn't matter if you're like, like before or after checkout. During checkout or after checkout, same kind of strategy applies. Different maybe tactic, different copy and images offers, but in general the same. So basically you are offering the same more of the same product. So in Vira's case, if she orders like coffee, the upsell might be like hey, order more coffee and you will get the discount. So kind of it comes back to the bulk discount like or hey, you are, I don't know, $10 away from getting free something. So the idea here just to kind of sell them more of the product they're already ordering.

Vira:

Right. Or if you have the subscription program, which as we already learned you absolutely should have, you can also upsell your subscription at the checkout, which is huge honestly. And this is like the ideal scenario when you're like getting one time customers and turning them into returned buyers. Right. And you can offer the discount for like subscription order. You can offer like some sort of like incentives maybe you can even offer the higher discount for the first time, for the first time subscribers or the higher discount for the first months of subscription and then go down. So yeah, or like Amazon is doing the other way apparently. So that's a huge one as well. Okay, so point number seven across sell after the checkout. How is it different from upsell? Let's start from the basics Andriy.

Andriy:

Sure. So it's basically we want to sell different complementary products. So in the previous, previous strategy for upsell I gave that example of you buying coffee and it was buying more of the same coffee. In this example, like if you buy coffee the brand wants to cross sell you something different. For example a creamer recently my wife ordered the mushroom coffee and, and they cross sell her in the, in the package they had the insert was a discount for the, the mushroom creamer. If you want to increase average order value because it's, it needs to be attributed for one for specific order you, you want to cross sell during checkout or after checkout.

Vira:

Okay, I see. And there are like tons of brands who can help you or not the brands. Tons of Shopify apps that can help you to like upsell that or after the checkout process like rebuy. I think Cardhook is doing that as well. I mean there are like a gazillion of little apps that can help you to do that and normally you can even like decide on that customer journey. Say like if the customer purchased like this specific coffee, promote them like this specific creamer or if their cart, if their average order value is like X, like promote this product that cost like X dollars. Yeah, I mean I love that there's like not much you can do with with like cross selling during the checkout with like email wise because like everything is happening there but like after. But like with using Shopify apps or whatever other platform you are using, you can like optimize your checkout process a lot. Actually that Mushroom Coffee example, I don't remember if I told you or not but like back in the day, back in the day like a year ago, me and my husband we, that was actually one the of our products that we never launched, the Mushroom Matcha and Mushroom Coffee. We like spent ton of ton of time, ton of money to develop the formula and it was amazing. The functionality wise it was the best, probably the best that is on the market. But it tasted like socks. So we never ended up launching it unfortunately. So if Nataliya your wife likes that coffee that she's drinking. Let me know.

Andriy:

If she likes taste.

Vira:

No, no, no. I mean if she likes the coffee that she ordered, I want to know what coffee was it? Because.

Andriy:

Razzle something starts on R.

Vira:

There's gazillion of them. Yeah.

Andriy:

Attractive email marketing. So we're trying to approach them.

Vira:

Yeah, yeah, like a lot of, a lot of those brands lately so. Cool, okay, referral programs tactic number eight. What are referral programs?

Andriy:

Like what it sounds. So basically you refer somebody to. To. To the brand and the person you referred will get some kind of incentives and you will get incentives because you refer them. However, if standalone referral program will not help you to increase average order Value, unless you will add some kind of threshold. So I would strongly recommend to maybe have a very attractive discount, attractive referral program. Like at least like $20, 25, $30 off, but at your threshold. So the average order value is. So it's about average or order value. So this is.

Vira:

So basically like all of the referral programs, they can be like described in one principle. It's like a give and get principle, right? You, you, you give $20, you get $20, you like give Airbn Airbnb credit. And that's actually that example of Airbnb I mentioned on purpose because that's pretty much how they build their business at the beginning, back when they launched, like, when was it, like 2012, 13? I don't know, it was like a long time ago. That's how they basically like talked about or how that they didn't have much money for marketing and that's how they promoted their brand through give and get kind of situation. So I love a good referral program. Okay, so you had something to say, Andriy?

Andriy:

No, no, no it's cool.

Vira:

Yeah, no, I, I, I love their Airbnb referral program. I still use it all the time. That's actually how I became Airbnb host host back in the day because, like, one of the hosts recommended me to do that. And once you like set up your Airbnb and host the first sort of like you get the first guest or whatever, you get the money as well, like an Airbnb.

Andriy:

But you cannot, I, I might be wrong, but I, I don't think they have it for renting. They. Sorry. For to rent a place. It's only referrals if you refer a new host to, to the place.

Vira:

No, I think they have, I think for the new guest as well. Like, if you've never been a guest of Airbnb, they have some sort of, of like a referral program.

Andriy:

I think they discontinue.

Vira:

Maybe it's been a while. It's been a while since I like joined the Airbnb, so. Yeah, but it's still a really cool, a really cool program. And if you don't have at least like some sort of referral program in place, definitely think about investing in one. It's not that expensive and you can like completely automate the process with different apps and yeah, definitely worth investment. Okay, Andriy, number nine extras. Tell me more about it because I'm sure you've put this presentation together. So tell me about the extras and what you mean by this.

Andriy:

So if you, in the example, in the our cheat sheet, that you can download on our website flowium.com/aov we have a Tesla example. But actually you might have the same experience in any dealership. When you go to buy a new car, you just buy a car, the basic car and then you're like, like I want, I don't know, like some, some extra feature, some extra thing and basically it adds up to you to the cost of the car. Same thing with E-Commerce store. If you are able to add some extras to your product, it will definitely increase average order value for, for your. Yeah, for your, for your store.

Vira:

Right. So the, the products, the main difference between all of the other strategies that we discuss here is that this products they have to be like complement product that the customer is purchasing. Like a lot of tech brands are doing that. When you're like purchasing the phone, they like offer you to buy the case, the extra charger, the plug, whatever. So this is a very popular strategy and if done right it actually can have a big impact on your potential grow of average order value. Number 10. This is the strategy that we discussed on our previous episode and this is the strategy that our foundation fellow Flowium marketeer Andrea loves a lot. Shout out to you Andrea, number 10, get a free gift when you buy X. Andriy, tell us more about this freebie strategy.

Andriy:

So this works again with some kind of thresholds. You cannot have, let's say I don't know, five dollar socks on your store and get, get the free gifts. There's supposed to be some conditions when you're getting that gift. And basically again all the strategies that we describe, the goal is to have that threshold higher than your average order value. And same thing here, maybe it's a place order of two products or like place an order of $50, $60 and above and get the free product. So in the example we have, it's a sticker mule and if you place an order for $100 or more and in the example here is $124, they add mule souls, it's a hot sauce to your kind of card for free as a gift.

Vira:

Yeah, I love this example because how random it is. Right? We used this example before but I just like, I love how random it is. And yet it works like stickers and sauce like they are from different planets. But it does work with some of my clients we've done like similar but the products were like more complementary. You know, like we had pad brands where we were like giving for free the dog toy or we were giving for free like the poop bags that they are using all the time the owners of the brand. But the sauce and stickers, I like this combo. It's a crazy combo if you ask me. That's a good one. Yeah. Everyone loves a good freebie. I know I do. And I love when you can choose your own freebie. That's like the entire extra level that you can add to your checkout experience where you can choose the product based on the information you volunteered in the past. That's what like a lot of skincare brands doing a lot of makeup brands are doing. That's very powerful. Okay, number 11. I don't have fingers left. So just like number 11. Super premium options. I love when something starts with like super or hyper or something or this like big loud words. What are super premium options, Andriy?

Andriy:

So it's basically it's a premium version of your product. So an example can be. In previous slide we had a dollar shave club example and they have like, oh, this is subscription for like a category. But if you want a razor with like more Blaze, Blaze looks cooler. This is this much. And if you like one super duper, like 38 blades in the razor, you can pay more. So basically it's a same product do the same function for you, but just premium version. So it's kind of. There's a lot of like of perceived value.

Vira:

Like a different packaging almost, you know who does it really, really well. There is this brand, it's Finnish brand called Oura Ring. This is, this is the ring. Basically it's rings that like analyzes your sleep. So they had this collabor I think with Gucci or something where they had like a branded ring. It looked different, I mean the same materials or like majority of the materials are the same. Maybe some of them are a bit more like high end. But they were like cross selling or not cross selling. They were like offering this option at the checkout for you. So like instead of the product that you already have in your card, they were like, hey, maybe you want to spend like $1 million more and get the same identical ring but with Gucci symbol on it.

Andriy:

Because the status, listen, it's a stat. Like you I have not. How you say or I don't have aura ring. And not just basic ordering. I have a Gucci aura ring. It's a special edition.

Vira:

Oh, it's an example. I thought you actually.

Andriy:

I don't.

Vira:

That would look badass on you, Andriy.

Andriy:

I'm not fan of flashy brands. I wear kind of ex. I do wear expensive products but probably 90% of people listening this podcast don't know those brands and they don't have any labels on the products.

Vira:

I love, I love a good flashy brand. Give me a good flashy brand. It's like, yeah, I was like upsold by Apple recently instead, like I paid extra for the golden strap for my watch. Not the regular gray or whatever. But I know what you mean. Like the big logos and like all this like simple, impulsive status. Yeah. In Vancouver we do have like a.

Andriy:

Flowium on your chest.

Vira:

I know what you mean, Andriy. Okay. Yeah, that's a good one. Super premium options. It's fun, it's different. You can definitely try it if you have budgets for that and if you have like loyal fans. And if you don't have loyal fans, what are you even doing in business? I. I'm joking. Number 12. The last one. The last one, but the big one. Memberships. Andriy, you have like a lot of ideas about memberships.

Andriy:

It's similar to subscription, but at the same time it's different. And I'll give you an example from a. I went to dinner yesterday, there were a lot of founders and he told me about this kind of similar strategy. So he goes to a court, the tennis court, and there's two options. You buy membership to the gym and you still pay to go there every day. For every day you go there, you pay. It like sounds crazy, but it's like a little bit discounted rate versus if you go there just once or twice. It's just you pay one price for that specific date. It's kind of influx of cash at one time. So basically you getting the average order value plus membership for the entire year year, for example. So it's a, it's kind of harder maybe to implement in the E-commerce, E-commerce space. But Amazon is a great example how they, how they do it.

Vira:

A lot of brands, we actually have this example in the PDF go to flowium.com/aov but a lot of brands that are like selling expensive like designer items. Like for example, I think the brand called article I might be wrong. Maybe it was like something else, the furniture brand. So they have, have the members price and not members price. And I'm pretty sure that you have to pay to be in that like members club. And when you are in that members club you're getting like early access to all of the sales. You're getting like a discounted rate. So if they like in a way encourage you to spend more with the brand and to stay loyal to the brand. Yeah. So that's a really cool model. To be honest, I haven't seen it a lot in the E-commerce because you probably need to be in that a bit more like a high end ish part of the E-commerce I guess. But that's a fun one.

Andriy:

Sure.

Vira:

Yeah. Okay guys, so there you have it.

Andriy:

So we are done.

Vira:

12 12 Amazing ways to improve your AOV. If there are any other ways that we haven't mentioned in our podcast, please go to our WhatsApp channel and yeah. And send us a quick message. We always love to talk to fellow marketeers. Yeah.

Andriy:

And just to like how to find us, just go to flowium.com/whatsapp and it will redirect you to the WhatsApp channel and you can message me, you can message Vira, you can ask any kind of questions and we are like I'm personally checking every day and responding to people in the chat.

Vira:

Yeah. Well, thank you so much for listening. All of the links we described or discussed will be in the description box, so make sure to check them out. Thank you so much and we'll talk to you next Tuesday.

Andriy:

Thank you. Bye.

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Vira Sadlak

Host