Why You Should Increase Your Average Order Value (AOV)

Regine: 00:00:11

Hey everyone, Regina here from Starter PPC.

2

: 00:00:13

Today I want to talk to you about the

most direct way that you can make more

3

: 00:00:18

money on each of your marketing dollars.

4

: 00:00:22

And this mostly applies to e

commerce companies because I'm

5

: 00:00:25

talking about very direct ways of

making more money on the website.

6

: 00:00:29

I'll have to do another video someday

for lead generation businesses and talk

7

: 00:00:33

about You know, upselling and things

like that later on, but for lead gen,

8

: 00:00:38

just know the biggest missed opportunity

that I see and the most direct way to

9

: 00:00:43

solve a low return issue with your ads

is to focus on average order value.

10

: 00:00:50

You might think to yourself, well,

you know you know, my average

11

: 00:00:53

order value is pretty average.

12

: 00:00:55

Like people are buying the

products that I want them to buy.

13

: 00:00:57

And it's.

14

: 00:00:59

Standard for my industry to make this much

that may be true, but just know this, the

15

: 00:01:04

competitors that have pulled out all the

stops on getting their average order value

16

: 00:01:10

up, they are the ones that are setting.

17

: 00:01:13

The price of a click for your industry,

if for every dollar they spend, they

18

: 00:01:18

can make more on the back end because

a percentage of their accounts are

19

: 00:01:22

buying three products instead of

two or two products instead of one,

20

: 00:01:27

then they can afford to pay more

for that click, get that top rank.

21

: 00:01:32

On their ads get all those favorite

keywords that we all want to rank

22

: 00:01:37

for, but they're expensive because

the competitors are setting the

23

: 00:01:40

cost per click out of reach.

24

: 00:01:42

unfortunately, if your competitors

are able to find ways to raise the

25

: 00:01:46

average order value, even a little

bit, it directly impacts how much

26

: 00:01:50

they can afford to pay for a click

and it directly impacts your.

27

: 00:01:53

Return because if you can't afford to pay

the same amount for that click, you're

28

: 00:01:58

going to show up lower on the page.

29

: 00:01:59

Your click through rates

are going to be lower.

30

: 00:02:01

You might get people that are

less motivated to buy, right?

31

: 00:02:03

Cause they scrolled all the

way down the page before they

32

: 00:02:05

found your ad, which means your

conversion rates going to be lower.

33

: 00:02:08

I mean, there's a spiral effect

basically for not being able to

34

: 00:02:12

afford the most expensive keywords.

35

: 00:02:14

always, always, always make sure

you're pulling out all the stops.

36

: 00:02:17

Just like your most successful

competitors are currently doing

37

: 00:02:20

to raise your average order value.

38

: 00:02:23

I'm going to walk you guys through one

of our clients and we're going to do

39

: 00:02:28

an analysis in real time to see whether

they're pulling out all the stops

40

: 00:02:32

to raise their average order value.

41

: 00:02:34

Okay, so let's see.

42

: 00:02:36

Let's go into one of

the shopping campaigns.

43

: 00:02:38

So I'm going to click on this

Pmax campaign here, performance

44

: 00:02:41

max, click on products.

45

: 00:02:43

What I like to do usually is I

just like to kind of sort by cost.

46

: 00:02:47

I do this because I want to start.

47

: 00:02:49

Analyzing the products that are

spending the most money, right?

48

: 00:02:53

If they're going to be spending

the most money, they probably

49

: 00:02:56

have the most amount of clicks.

50

: 00:02:58

I mean, not necessarily,

but probably way up there.

51

: 00:03:00

They probably are a best selling product.

52

: 00:03:03

Again, not always, but they're out there.

53

: 00:03:04

bottom line, if they're spending money,

I want to make sure that that product is.

54

: 00:03:08

Perfect.

55

: 00:03:09

I'm going to sort by cost over here.

56

: 00:03:11

You can just click on

the column to sort it.

57

: 00:03:14

And I can see that this one, Enchanted

Willow Vine Lights, is by far the top one.

58

: 00:03:20

Look at that, 585 clicks

compared to all these others.

59

: 00:03:23

The next best on my screen

here is, is this product.

60

: 00:03:27

So I would do probably one of

these next First thing that I

61

: 00:03:29

do is I click on the product.

62

: 00:03:30

It shows me a preview and

here's what I'm going to do.

63

: 00:03:33

I'm going to pretend that I am.

64

: 00:03:36

A customer who's looking for

enchanted willow vine lights.

65

: 00:03:39

Let's say I went to Google and I

searched for vine lights, right?

66

: 00:03:43

Or like pretty fairy lighting for my room.

67

: 00:03:47

So whatever it is that they searched

for and they get 30 different results.

68

: 00:03:51

from all your competitors, right?

69

: 00:03:52

All of them selling different

types of pretty fairy vine lights.

70

: 00:03:56

And let's say they click on five of them.

71

: 00:03:58

They're like, Oh, this one's cheap.

72

: 00:04:00

Oh, this one's pretty.

73

: 00:04:01

Oh, this one's the one I

was imagining in my head.

74

: 00:04:03

So they right click open

in a new tab, right?

75

: 00:04:05

Click open in a new tab, right?

76

: 00:04:06

So you have a lot of competition.

77

: 00:04:08

You have to catch their

attention right away.

78

: 00:04:10

And not only that, but you also have to

try to make the most money from that sale.

79

: 00:04:14

Or again, the cost that you paid for

all these clicks, these 585 clicks will

80

: 00:04:19

not bring the return that you need.

81

: 00:04:20

we're going to click through this ad

preview over to the product landing page.

82

: 00:04:26

And we're going to pretend that we

are a customer and we have five other

83

: 00:04:31

tabs open from five other competitors

with different types of lights.

84

: 00:04:34

Maybe we clicked on this one

because it was the cheapest.

85

: 00:04:36

Maybe we clicked on this one because

something in the image caught our eyes.

86

: 00:04:39

We don't know.

87

: 00:04:40

But first thing that you see is the image.

88

: 00:04:44

So they're going to start

clicking through, right?

89

: 00:04:46

So make sure you have

some good images up there.

90

: 00:04:49

The next thing they're going to do is

think, well, they might think, okay.

91

: 00:04:52

I wonder how long this is, right?

92

: 00:04:54

So where's the description?

93

: 00:04:55

What I'm seeing right now is a lot of

empty space and the empty space is,

94

: 00:05:01

I'm, I'm bringing up the empty space

for a reason, because there's a lot

95

: 00:05:03

of opportunities that you can do to

try to get the sale or to try to get

96

: 00:05:08

people to buy more than one product and.

97

: 00:05:11

None of those opportunities are going

to do well if people have to scroll

98

: 00:05:15

and scroll and scroll and scroll.

99

: 00:05:16

So making sure that you're not

wasting space, you're spreading things

100

: 00:05:21

across the width of the page so that

you're, you're preventing people from

101

: 00:05:25

having to scroll too much is, is key.

102

: 00:05:28

Because let me, let me scroll down

and show you what I'm talking about.

103

: 00:05:30

first of all, I see a buy

more and get a discount.

104

: 00:05:33

This looks like a basic app that

just says if you buy two, you get 5%.

105

: 00:05:36

If you buy three, you get 15%.

106

: 00:05:38

I think this type of

thing is good to have.

107

: 00:05:40

I don't have any data to tell you

whether this increase, increases

108

: 00:05:44

the conversion rate or not.

109

: 00:05:46

This particular app I think is

not implemented in the best way.

110

: 00:05:50

I think that these boxes are a little bit.

111

: 00:05:52

Strange looking and need to be updated.

112

: 00:05:54

And I also think that

this is easily missed.

113

: 00:05:56

I would put this up here, you know,

up here, somehow at the top, like by

114

: 00:06:02

two doesn't change the price by 5%.

115

: 00:06:05

I just clicked on two,

I changed it to two.

116

: 00:06:08

It didn't change the price.

117

: 00:06:09

So I think a developer could make

this a little more seamless and

118

: 00:06:12

actually save this space, right?

119

: 00:06:13

You could just write it up

here by two and get a discount.

120

: 00:06:16

And then when people change it to two.

121

: 00:06:18

It changes the price.

122

: 00:06:19

So that would be ideal.

123

: 00:06:20

Again, the description

needs to take up less space.

124

: 00:06:22

Make it full width, you guys.

125

: 00:06:24

The less scrolling, the better.

126

: 00:06:25

There are five other competitor...

127

: 00:06:27

pages that this person

has to go look at still.

128

: 00:06:29

you want them to get to your

important stuff as soon as they can.

129

: 00:06:33

The important stuff is going to

be the, you may also like section.

130

: 00:06:37

I know we've all seen these sections.

131

: 00:06:39

I really think they're effective.

132

: 00:06:41

Because if somebody has landed

on this product, because it's the

133

: 00:06:45

cheapest, you can show them a more

expensive version of a similar product.

134

: 00:06:49

And they might think, you know what,

actually like that product I don't

135

: 00:06:52

mind spending a little bit more.

136

: 00:06:54

Now you've done a Cross cell or an upsell.

137

: 00:06:56

I'm not sure what the

official term is for that.

138

: 00:06:58

you may also like section,

which actually don't see here.

139

: 00:07:01

Let's see if it's at

the bottom of the page.

140

: 00:07:03

No, there is no, you

may also like section.

141

: 00:07:05

So that definitely, definitely,

definitely needs to be added to the page.

142

: 00:07:08

You guys, if you don't have a, you may

also like section you are missing out.

143

: 00:07:11

in addition to showing people more

expensive versions of the same product,

144

: 00:07:16

you can also show them complimentary

products, So you might want to spend

145

: 00:07:20

some time in your, you may also like

section customizing what is appearing

146

: 00:07:26

for each of your best selling.

147

: 00:07:29

And high margin products.

148

: 00:07:30

you might want to show, for

example, someone's looking for some.

149

: 00:07:33

fairy vine lights for their living room.

150

: 00:07:36

They might also want some other

lighting options like hanging

151

: 00:07:40

lights that kind of match, right.

152

: 00:07:42

That kind of go along with it.

153

: 00:07:43

They also might want some nice

other decor for their living room.

154

: 00:07:47

Maybe that's just where their mindset is.

155

: 00:07:49

Maybe they're preparing

for a big event, right?

156

: 00:07:51

So that's like a complimentary product.

157

: 00:07:52

If people buy both the

lights and the other product.

158

: 00:07:55

even 10 percent of the people that land

decide to buy two products instead of

159

: 00:07:59

one, because of this section, you now

have a significant leg up over the

160

: 00:08:03

competitors who aren't doing that.

161

: 00:08:05

All the other competitors

in your industry.

162

: 00:08:08

won't be able to afford the

clicks that you can afford.

163

: 00:08:12

So you will start to rank better in your

ads, you will start to get higher click

164

: 00:08:16

through rates because of that rank, and

you'll start to get higher conversion

165

: 00:08:20

rates because the people who click on ads

at the top of the page are, tend to be

166

: 00:08:24

more motivated to buy than the people who

click on ads at the bottom of the page.

167

: 00:08:28

Make sure you have a you

may also like section.

168

: 00:08:31

I don't know.

169

: 00:08:32

I'm on the fence between putting it

above the reviews and below the reviews.

170

: 00:08:35

I'm tempted to put it above the reviews,

but I also feel that's a little awkward.

171

: 00:08:39

if it's a skinny section, you

could squeeze it in above and

172

: 00:08:42

see how that feels for you.

173

: 00:08:44

If you decide to go with putting

it below, I would just limit.

174

: 00:08:47

If you can make your review section

take up less space, maybe have a see

175

: 00:08:52

more button so that the review section

is a skinny section and people can

176

: 00:08:57

immediately see the you may also like

section right below your reviews.

177

: 00:09:01

But again, I don't think

it's horrible above that.

178

: 00:09:03

That's how Amazon does it right?

179

: 00:09:05

When you are looking.

180

: 00:09:06

Add a product they have like two or three.

181

: 00:09:08

You may also like sections.

182

: 00:09:10

Actually, they have two above the

reviews and one below the review.

183

: 00:09:13

I know.

184

: 00:09:13

Cause I spend a lot of time on Amazon.

185

: 00:09:15

I like this free shipping when you spend

over 50, if you don't have like a basic

186

: 00:09:19

banner at the top, encouraging people

to increase their average order value.

187

: 00:09:24

definitely get that.

188

: 00:09:25

You can also have a pop up that

encourages people to spend money

189

: 00:09:29

because a lot of people tune this out.

190

: 00:09:31

So you could have, for example, this

same call to action in a pop up.

191

: 00:09:35

My only recommendation is not

to have the pop up happen right

192

: 00:09:38

away, like before people have a

chance to look at the product.

193

: 00:09:40

I would have it pop up

when they start to scroll.

194

: 00:09:43

Right.

195

: 00:09:43

So when they're about halfway down the

page, maybe you pop up and say, Hey, by

196

: 00:09:47

the way, you get free shipping if you

spend over 50 and you want to choose that

197

: 00:09:51

50 or in this case, 50 euros by looking

at the average amount of money that

198

: 00:09:57

people spend on your site and then picking

something just slightly above that.

199

: 00:10:01

So if most people are spending 45,

make them spend 50, that'll force

200

: 00:10:06

them to get two products instead of

one, if they want that free shipping.

201

: 00:10:10

Yeah, I think.

202

: 00:10:11

I think that's that for now.

203

: 00:10:14

You can also what I've seen in websites.

204

: 00:10:17

Well, I'm not sure that this really

goes with the average order value,

205

: 00:10:20

but you can pull in like images

from affiliates or images from your

206

: 00:10:24

Instagram of people using this product.

207

: 00:10:27

So in addition to having images

from customer reviews, you know,

208

: 00:10:31

you can have a section that shows.

209

: 00:10:33

People in real life

making use of the product.

210

: 00:10:36

And I always think that that helps, that

helps increase the conversion rate, but

211

: 00:10:40

not necessarily the average order value.

212

: 00:10:42

that's that.

213

: 00:10:43

Make sure you're pulling out all the stops

to increase your average order value.

214

: 00:10:47

Oh, something I forgot to mention.

215

: 00:10:50

Always, always, always have a

menu at the top of your page.

216

: 00:10:53

I think most e commerce sites do, but

I'm just making sure you guys want

217

: 00:10:58

to encourage people to browse, right?

218

: 00:11:00

So if they're just landing on a product

page and there's no other categories

219

: 00:11:04

to catch their eye, maybe they're

like, Oh yeah, I actually, I have been

220

: 00:11:08

looking for a crystal bracelet lately.

221

: 00:11:10

Maybe I'll just, while I'm here, I'll

just go and check that section out.

222

: 00:11:14

Right?

223

: 00:11:14

So you want to.

224

: 00:11:15

Have a couple of categories, enticing

people to browse around a sale category.

225

: 00:11:21

It's always good to have for those

budget shoppers who are always going to

226

: 00:11:25

check the sale rack on their way out.

227

: 00:11:27

Yeah.

228

: 00:11:27

Frequently asked questions, reviews.

229

: 00:11:29

I love this.

230

: 00:11:30

Although it's strange that

the reviews are duplicated.

231

: 00:11:33

So I think this website needs

a little bit of help there.

232

: 00:11:36

Make sure you're pulling out all the stops

to increase your average order value.

233

: 00:11:39

It is the most direct way

to make more money on every

234

: 00:11:42

dollar you spend on your ads.

235

: 00:11:44

So it raises your media efficiency

ratio, your MER, right away, overnight.

236

: 00:11:49

Don't forget to like and subscribe.