What factors affect the AOV?
AOV, or the average value of the basket, is one of the key factors showing whether our online shop performs well and whether our promotional activities are going in the right direction. How should it be analysed in e-commerce?
What is the “weight” of your client's basket?
Analysing the AOV we know the shopping behaviour of our clients, and thanks to the information we receive, we can make more informed business decisions. This indicator also provides us with information on the effectiveness of our promotional activities.
For example, if your online shop generated revenues of £50,000 last month and purchases were made by 250 customers, the average value of each basket would be £200.
What if you had an influence on the AOV?
Increasing the value of the shopping basket in the e-shop is possible by introducing recommendation engines, namely:
Personalise the home page - give your customers the feeling that the offer of your e-shop has been created especially for them.
Use up-selling and cross-selling - recommend the products of a higher value than those which the customer has previously purchased or recommend complementary products.
Use zero search strategies - recommend to users of your online shop other offers on the page with no search results. Instead of leaving your website, they will have the opportunity to learn about the additional offer.
These solutions have a very positive effect on increasing the value of shopping baskets. If you want to implement these functionalities in your e-commerce, please contact us at contact@quarticon.com. You can read more about the implementation of personalisation and recommendation systems on our blog.