We promise you’ll walk away with strategies that can transform your business by boosting your average order value without depending on price changes. Explore the magic of free shipping as a powerful incentive for increasing purchase sizes, and learn how setting strategic thresholds can entice customers to spend more. Our discussion highlights AI-powered product recommendations, featuring a compelling case study from Dan Murphy that reveals how individualized shopping experiences can skyrocket revenues.
Navigate the lucrative world of product bundling with us as we uncover how thoughtfully curated packages can simplify customer decisions and elevate your sales game. By crafting appealing bundles like themed collections for special occasions—with a nod to cross-category collaborations—you can meet diverse customer needs while enhancing AOV. Brian and I emphasize the importance of highlighting the value of these bundles, along with leveraging free shipping to further motivate buyers. Equip yourself with these actionable strategies to see marked improvements in your conversion rates and set the stage for e-commerce success.
The Digital Horizons Podcast is hosted by:
James Walker - Managing Director WHD
Brian Hastings - Managing Director Nous
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:01):
Welcome to Digital Horizons, the channel for
digital marketers, e-commerceentrepreneurs and business
owners who want to know what'sworking in the digital marketing
space.
Right now, I'm joined here withBrian Hastings.
Speaker 2 (00:11):
I'm your host James.
Speaker 1 (00:12):
Today we are getting into part two of our five-part
series.
We're actually at part threebecause we did the overview at
the beginning, but we're talkingabout the second lever for
e-commerce growth, which isaverage order value.
Speaker 2 (00:24):
Yeah, and we've got a few quickfire strategies within
the average order value lever abit of content to get through.
So we're going to try to be asefficient and succinct as
possible on each one and giveyou some real, usable ideas and
tactics to increase the averagespend of each customer at
checkout.
Speaker 1 (00:43):
Absolutely, and we're not getting into simple stuff
like as well, not as simple.
It's not a simple strategy, butpricing, because I think
pricing is a whole differentballgame.
This is more elements that youcan do within your actual
marketing strategy or yourwebsite strategy to try and
encourage people to go throughthe process to spend more.
Yeah, absolutely.
Speaker 2 (00:59):
I think that's an umbrella over everything.
Of course, we know that you canincrease your price and that
will increase the average ordervalue.
But that's very market specificand product specific 100%.
Speaker 1 (01:09):
So when we're talking about the first one here, it's
going to be using free shipping,and it kind of sounds a little
bit counterintuitive, because ifyou're offering free shipping,
you're obviously going toincrease your average order
value because you're now notcharging for shipping.
But when used in the right way,in terms of using it as a lever
to encourage people to spendmore to access the free shipping
, this can be an extremelypowerful tool.
When you're doing this, though,you don't want to just look at
(01:29):
it as all right, I'm just goingto offer free shipping.
Now there's got to be a lot ofstrategy behind it, because you
can really shoot yourself in thefoot with this style, because
you could potentially be eitherblocking current customers or
people who are potentially goingto buy, but then your threshold
is going to be set too low sothat you can't actually people.
It's deterring sales.
So the way you want to approachit is place it just below your
average order value within yourwebsite, because you don't want
(01:52):
to stop people from checking out, but you want to lift people
who aren't there to spend more.
So that way, you're nothindering your current sales and
you're elevating the people whoare sitting underneath the way
that we do this, though, though,is we're not going to look at a
site-wide average order value,because you are going to have
some big spenders who reallyblow out your average order
value, and they're not going tobe a high volume of them, though
.
So we want to look at ourcohorts and look at the highest
(02:12):
volume cohort that we havewithin our website, and then, by
looking at that, you're goingto see all right, cool, there's
a whole bunch of people that, onaverage, are, say, spending $80
.
And know that the biggest chunkof our customers are spending
$80.
So let's set our threshold at$75.
So then you're not impactingthat large group of it, because
they're going to spend thatanyway.
It's not going to impact them.
That's cool.
But then all the people thatare spending $60, they're going
(02:34):
to go oh, I need to spend anextra $15 or more to get the
free shipping.
So now you've lifted andelevated that lower cohort of
people who weren't quitespending your average of your
largest base of customers.
So this strategy really, then,will lift up your overall sales.
You're not impacting yourcurrent base, and your big
spenders are going to keepspending big anyway because
you're not impacting them, andso this strategy is really going
to help you elevate youroverall revenue through average
(02:56):
order value.
Speaker 2 (02:57):
Yeah, absolutely, and it is seen as beneficial to
those customers who are spending60.
It is common practice to seethat if you spend over this
threshold, you're going to get adiscount and they will get
additional value.
They get more stuff that theywant rather than spending on
shipping.
Speaker 1 (03:12):
Well, that's it.
And I guess, if you're lookingat it, if they were spending $60
, just to your point beforeabout eBay if they were spending
$60 and then you're going tocharge $10, so that's going to
get them to $70, but it's onlyan extra $5, then they're going
to get free shipping.
It's almost like a no-brainer.
It's like, well, fuck it, I'mjust going to spend an extra $15
on product, as opposed tohaving to pay that towards
shipping.
Speaker 2 (03:28):
Yeah, exactly, it's like paying a fine.
So yeah, absolutely, exactly.
Speaker 1 (03:35):
So that's one thing, and I think that's probably one
of the more immediate thingsthat you could do and implement,
but looking at where yourbiggest group of spenders are
not your biggest spenders,because your biggest spenders
are going to spend anyway.
Correct Like a bell curve tofind that median so we're going
to move on to the second tacticnow, and that's AI product
(03:57):
recommendations 100%, and ifyou're not using AI within your
Shopify store or within youre-commerce store, now is the
time to start thinking about it.
Speaker 2 (04:04):
This is something we covered in a brand news a couple
of weeks ago that Dan Murphy'shas recently had huge success in
using AI productrecommendations.
If you've ever shopped at DanMurphy's I would presume a lot
of our listeners and well we doyou'll know that you enter your
phone number and they connect toyou as a customer and you get a
discount on some wines and somespirits.
(04:26):
What they're doing with thatinformation, though, is building
up a profile about the typicalproducts that you usually buy.
They can then target you in theapp with the best suggested
offers and recommendationstailored to what you like, or
you might step sideways and buy.
That has caused them tomassively increase the total
(04:47):
purchasing over a period of ayear from their customers by
dropping in those right offersat the right time to the right
people.
So it is effectively learningwhat your customers like by
tracking what they're spendingand buying from you and then
producing the right offers tonot reduce what they're going to
spend anyway, but to increaseit.
We've seen it work at scale forDan Murphy's, and these sort of
(05:10):
tools are going to become moreand more available, and they're
already available to connectinto Shopify right now.
Speaker 1 (05:16):
That's right.
There's one that we've foundthat's called Product Yield.
We haven't tested ourselves,but this is one that is using AI
recommendations based on yourprevious Shopify data, so it's
going to then recommend productswithin your product pages,
within your shopping cart andwithin your checkout process for
relevant products that peoplehave previously purchased in the
past.
That is very likely to go withwhatever is in the person's cart
at the moment.
So, again, there will be a costinto this.
(05:38):
But if you think about well, ifthis is going to increase my
average order value, say, by 10,20%, then it's going to be
offset very quickly.
Speaker 2 (05:44):
Yeah, I think the days of you just picking what
the recommended products foreach product yourself should be.
Maybe trial this tool alongsidethat, so that you can let data
decide on what the next bestthing is.
I feel most people don't evenactually pick anything do they
yeah, no, it's just other thingsfrom the category that is.
I mean normally it's like hey,this category goes with this
category.
Speaker 1 (06:03):
It's the majority of what we see our clients and most
businesses do, so I feel likestuff like this just gives you
an edge on the competition.
Speaker 2 (06:09):
Yeah, so this is of use to the customer.
They're going to enjoy gettingthe corresponding or relevant
supporting product to add totheir cart, rather than getting
suggested an alternative to whatthey've already got in their
cart.
Speaker 1 (06:22):
Yeah, 100%.
You need to make sure it'scomplimentary.
So let's move on to the nextone, Next one.
So the next one we're talkingabout is one click up sales, and
this is.
These have been around for along time, but I just don't see
them often enough.
Speaker 2 (06:32):
Yeah, I agree.
When I've seen it work wellonce, I was like why isn't
everyone doing this?
It gets me every time when Isee it.
Speaker 1 (06:39):
It does, and I think that you offer, but it's a high
consideration product and so yousit in there and you put a
timer on it and they can't makea decision because it's not an
impulse buy.
So you want to make sure whenyou're considering what it is
you're going to put on your cartas well on your completed
checkout page, make sure it's animpulse purchase, so it's a low
(07:01):
cost, high margin product.
So that way you can just bumpyour average order value up,
customer doesn't have to thinktoo much about it and you're
adding something that'scomplementary to what they've
already purchased.
Speaker 2 (07:09):
And to give some clarity around how that process
actually works.
When you've checked outnormally at a store and you get
the thank you page instead ofjust getting a thank you page,
the site and the app that'sconnected to do one click upsell
remembers all of your creditcard data and your postage
information and just asks if youwant this extra product, you
(07:30):
can add it to the order withouthaving to go through the process
again.
We've got it all here, ready togo.
Just click this button once andit will add to your total order
.
It's pretty amazing because yougo, yeah, why not?
That's it.
Speaker 1 (07:40):
That's it, and it's just got to be the right product
there, doesn't it?
Because you don't want to haveto think too much about it, and
so selecting that product is keySort of hack around this as
well, because the platforms thatdo do this they, I think,
simplified pages.
They charge a percentage of theactual upsells, so it can be a
bit of a it's not costly.
I mean, if you're going to getthe sales anyway I mean you're
still increasing your sales youwill get those extra fees.
(08:00):
But a way around this that wefound that can work as well is
set up an email automation, apost-purchase automation.
Then what you do there ispeople complete their purchase.
They don't see the one clickupsell there, but then you can
have an email that will go outimmediately and say hey, by the
way, would you like to add thisto your order?
If you complete the purchasewithin the next two hours or
four hours or whatever it is,that is going to give you enough
time to identify this is linkedto this order so it's not
(08:22):
duplicating your orders.
And then you're sending out twopackages, double shipping.
So it is a hack around.
It's not exactly as clean cutbecause they do have to go back
through and purchase.
It's not going to be a oneclick, but it is getting you
around that percentage thatyou're going to have to pay as a
free option there.
Speaker 2 (08:36):
And look, it could even be worthwhile testing both.
You know, if you didn, I'll getthem on the next one as well.
Speaker 1 (08:42):
There's something that I hate, though, when I see
these one-click, like we weresaying when it's done well, it
works really well, but I hatethe ones that are just like hey,
would you like this?
No, would you like this?
Speaker 2 (08:49):
No Would you like this and it just keeps going.
Speaker 1 (08:59):
You just fuck off and give me my confirmation.
I just want worst.
Speaker 2 (09:02):
Do you want a car hire?
Speaker 1 (09:03):
I'm like what's going on.
It's got to be relevant andjust make it easy.
Speaker 2 (09:07):
Yeah, absolutely so.
As far as platforms goes forthis, james mentioned one but
you can just search One Click,upsell and Shopify and it's
going to be multiple platforms.
Speaker 1 (09:16):
I think it's actually called One Click Upsell Shopify
, like that's basically the appplugin, that the app plugin,
that's the other option, so thatworks.
Speaker 2 (09:22):
The next one loyalty programs, but with a twist.
Do you want to take us throughthe twist, james?
Speaker 1 (09:27):
Yeah.
So I mean you just want to makesure you've got exclusive tier
perks.
You don't want it to just belike hey, join our club, sign up
for an email and now you're in.
You want to have it kind of, Iguess, like here in Australia,
the Qantas Club or your frequentfly airline point programs,
where you're sort of alwaysstriving for the next tier
because you know that there'sadded benefits that you're going
to receive from it.
So if you can picture, you'rein the cart and you're like all
(09:47):
right, cool, if you purchase XXand X, you're now going to get
access now for lifetime freeshipping.
Or you're now going to getearly access to our sales if
it's a very high demand.
You sell out quickly in salesperiods, so make sure that
you're setting getting people towant to add more points, add
more spend to be able to levelup into the different categories
.
Speaker 2 (10:06):
Yeah, it monitors your customers and shares with
them how much you value them byallocating them points and
giving them extra perks.
I think it's fantastic.
One of our clients is veryadvanced in the e-commerce space
is Jericho.
They sell beard butters andoils grooming products for your
beard.
They have a platform in placethat is building this tiered
(10:29):
approach and people advocates ofthe brand take it really
seriously.
They want to see their tiergetting up to the next level and
they're buying all differentscents and it's important to
them.
It becomes a really valuablething to have that ongoing
connection with the customer100%.
Speaker 1 (10:45):
And yeah, I mean it's adding value, right.
So all these things that we'retalking about here are trying to
add value to the customer'swell.
It's not trying to just extractextra dollars out of it just
for the sake of increasing yourIRB.
Every one of these strategiesis also trying to provide
something that is of relevance,it's in line with what they're
looking for and you're not justadding bullshit extra charges or
whatever just to increase thataverage order value.
Speaker 2 (11:04):
And, I think, the loyalty programs.
They're going to be tied to ournext lever, which is lifetime
value, or customer lifetimevalue as well as average order
value.
So a double hit there, yep,100%.
So let's move on to the lastone for today.
Speaker 1 (11:19):
Okay.
So bundling products and thisis one that I think it kind of
feels like a no-brainer.
I feel like it's like you knowit makes sense.
If you're going to, you've gotproducts that are complimentary,
why not put them in togetherinto a package and get people to
purchase them?
Just don't see this done wellenough or often enough.
It can have such a massiveimprovement in your average
order value, especially if theyare hey, like if you buy this
thing, that everybody else isbuying this other thing.
Why not just put a slightlycheaper price and then make it
(11:41):
so it's just a single purchase,rather than have a comeback and
do it as an upsell or somethingelse and just bundling up your
packages to be able to increaseAOB?
Speaker 2 (11:48):
Yeah, an example that same client the Beard Oil and
Beard Butter, beard Care brandJericho.
They introduced what they callthe wall of Jericho, which is
all of their scents together inone box, just smaller, almost
tester size versions, droppersof the scents.
But people who love the brandthey might already have one or
two of those scents.
They're buying this wall ofJericho to have the whole set.
(12:10):
It's more than just bundlingexisting products.
They found a way to bundle theminto one box, so there's
creative ways of doing it.
And then there's theold-fashioned way of going.
Well, if you're buying a beardoil, maybe you'd want a beard
butter as well, and potentiallyyou'd want a brush or a beard
straightener.
Let's turn that into a Father'sDay bundle or a gift bundle.
Speaker 1 (12:31):
Well, that's it, and gifting for the purpose of
gifting.
That's another reason to bedoing it, because sometimes you
just don't know what to buy andyou jump on a store and it's
very clearly packaged up andit's like the perfect bundle for
the person who has this need.
Then why not You're just goingto buy that, rather than a
single product or trying to workout what you need to buy for
this person?
Speaker 2 (12:47):
Yeah, absolutely, and you could go.
Well, I know they like thisbrand or this thing.
I'm just going to get this andthey get a bit of everything.
Speaker 1 (12:52):
Yeah, and I think when you're actually looking at
your bundling strategy, thinkabout it in as many different
ways as you can.
So looking at it as per thegifting solution, or looking at
as per well, this is for yourbeard one, it's a whole solution
for your grooming needs.
Yes, it's making it convenient,but then when we're looking at
see how big you can go as well,because then maybe look across
categories as well so you mightfind all right, well, if they
(13:13):
buy this and this is also goingto be very relevant for the
person ideally going to get theminto and interested in the
other category they have so ifyou're talking about beard oil,
so if you're talking about beardoil, you might have some hair
grooming products or something.
This could be an entry-levelproduct to get people interested
, and then they could become afan of this product category too
.
Speaker 2 (13:28):
I think it's also important to share the value
delivered if you bought it as abundle.
Speaker 1 (13:32):
Yes.
Speaker 2 (13:33):
And also keep in mind that if you have that free
shipping over a certainthreshold in place, this is
another way of getting that userover that threshold.
So they're going to be thinkingwell, I get $10 off for free
shipping and I'm getting thisadded value anyway by getting it
in a bundle.
It's win-win and the averageorder value goes way higher than
if they were just coming forthat one thing.
(13:54):
That's it.
Do it Okay.
Speaker 1 (13:58):
So if you're not doing any of these things.
Obviously, you're just notgetting the amount of sales that
you could be from every visitorthat's coming through your
website, each one of theseepisodes.
At the moment, what we'retalking about is if you look at
implementing a number of thesedifferent things.
Like we said right at the start, we're trying to even just set
the baseline as increasing eachof these metrics, just say by
10%, as a starting point.
So if you think about what youraverage order value is right
(14:19):
now, implement any one of these.
It's likely to increase yourAOV by 10%.
Next week we're going to becovering off on conversion rates
.
Speaker 2 (14:25):
That's a big one that's just a direct lever to
more money.
That's right.
Speaker 1 (14:29):
So we want to make sure that now we've got people
that are coming through.
We've talked about the trafficchannels.
We're now increasing ouraverage order value.
Now we want to be convertingmore of them.
Yeah, great.
Speaker 2 (14:36):
So we covered free shipping, ai product
recommendations, post-checkout,upsell, loyalty programs with
tiered perk levels and bundlinginto packs.
That's the average order valuesession for today.
That's Digital Horizons forthis week.
Thanks for watching, thanks.
Welcome to Digital Horizons, the channel for
digital marketers, e-commerceentrepreneurs and business
owners who want to know what'sworking in the digital marketing
space.
Right now, I'm joined here withBrian Hastings.
Speaker 2 (00:11):
I'm your host James.
Speaker 1 (00:12):
Today we are getting into part two of our five-part
series.
We're actually at part threebecause we did the overview at
the beginning, but we're talkingabout the second lever for
e-commerce growth, which isaverage order value.
Speaker 2 (00:24):
Yeah, and we've got a few quickfire strategies within
the average order value lever abit of content to get through.
So we're going to try to be asefficient and succinct as
possible on each one and giveyou some real, usable ideas and
tactics to increase the averagespend of each customer at
checkout.
Speaker 1 (00:43):
Absolutely, and we're not getting into simple stuff
like as well, not as simple.
It's not a simple strategy, butpricing, because I think
pricing is a whole differentballgame.
This is more elements that youcan do within your actual
marketing strategy or yourwebsite strategy to try and
encourage people to go throughthe process to spend more.
Yeah, absolutely.
Speaker 2 (00:59):
I think that's an umbrella over everything.
Of course, we know that you canincrease your price and that
will increase the average ordervalue.
But that's very market specificand product specific 100%.
Speaker 1 (01:09):
So when we're talking about the first one here, it's
going to be using free shipping,and it kind of sounds a little
bit counterintuitive, because ifyou're offering free shipping,
you're obviously going toincrease your average order
value because you're now notcharging for shipping.
But when used in the right way,in terms of using it as a lever
to encourage people to spendmore to access the free shipping
, this can be an extremelypowerful tool.
When you're doing this, though,you don't want to just look at
(01:29):
it as all right, I'm just goingto offer free shipping.
Now there's got to be a lot ofstrategy behind it, because you
can really shoot yourself in thefoot with this style, because
you could potentially be eitherblocking current customers or
people who are potentially goingto buy, but then your threshold
is going to be set too low sothat you can't actually people.
It's deterring sales.
So the way you want to approachit is place it just below your
average order value within yourwebsite, because you don't want
(01:52):
to stop people from checking out, but you want to lift people
who aren't there to spend more.
So that way, you're nothindering your current sales and
you're elevating the people whoare sitting underneath the way
that we do this, though, though,is we're not going to look at a
site-wide average order value,because you are going to have
some big spenders who reallyblow out your average order
value, and they're not going tobe a high volume of them, though
.
So we want to look at ourcohorts and look at the highest
(02:12):
volume cohort that we havewithin our website, and then, by
looking at that, you're goingto see all right, cool, there's
a whole bunch of people that, onaverage, are, say, spending $80
.
And know that the biggest chunkof our customers are spending
$80.
So let's set our threshold at$75.
So then you're not impactingthat large group of it, because
they're going to spend thatanyway.
It's not going to impact them.
That's cool.
But then all the people thatare spending $60, they're going
(02:34):
to go oh, I need to spend anextra $15 or more to get the
free shipping.
So now you've lifted andelevated that lower cohort of
people who weren't quitespending your average of your
largest base of customers.
So this strategy really, then,will lift up your overall sales.
You're not impacting yourcurrent base, and your big
spenders are going to keepspending big anyway because
you're not impacting them, andso this strategy is really going
to help you elevate youroverall revenue through average
(02:56):
order value.
Speaker 2 (02:57):
Yeah, absolutely, and it is seen as beneficial to
those customers who are spending60.
It is common practice to seethat if you spend over this
threshold, you're going to get adiscount and they will get
additional value.
They get more stuff that theywant rather than spending on
shipping.
Speaker 1 (03:12):
Well, that's it.
And I guess, if you're lookingat it, if they were spending $60
, just to your point beforeabout eBay if they were spending
$60 and then you're going tocharge $10, so that's going to
get them to $70, but it's onlyan extra $5, then they're going
to get free shipping.
It's almost like a no-brainer.
It's like, well, fuck it, I'mjust going to spend an extra $15
on product, as opposed tohaving to pay that towards
shipping.
Speaker 2 (03:28):
Yeah, exactly, it's like paying a fine.
So yeah, absolutely, exactly.
Speaker 1 (03:35):
So that's one thing, and I think that's probably one
of the more immediate thingsthat you could do and implement,
but looking at where yourbiggest group of spenders are
not your biggest spenders,because your biggest spenders
are going to spend anyway.
Correct Like a bell curve tofind that median so we're going
to move on to the second tacticnow, and that's AI product
(03:57):
recommendations 100%, and ifyou're not using AI within your
Shopify store or within youre-commerce store, now is the
time to start thinking about it.
Speaker 2 (04:04):
This is something we covered in a brand news a couple
of weeks ago that Dan Murphy'shas recently had huge success in
using AI productrecommendations.
If you've ever shopped at DanMurphy's I would presume a lot
of our listeners and well we doyou'll know that you enter your
phone number and they connect toyou as a customer and you get a
discount on some wines and somespirits.
(04:26):
What they're doing with thatinformation, though, is building
up a profile about the typicalproducts that you usually buy.
They can then target you in theapp with the best suggested
offers and recommendationstailored to what you like, or
you might step sideways and buy.
That has caused them tomassively increase the total
(04:47):
purchasing over a period of ayear from their customers by
dropping in those right offersat the right time to the right
people.
So it is effectively learningwhat your customers like by
tracking what they're spendingand buying from you and then
producing the right offers tonot reduce what they're going to
spend anyway, but to increaseit.
We've seen it work at scale forDan Murphy's, and these sort of
(05:10):
tools are going to become moreand more available, and they're
already available to connectinto Shopify right now.
Speaker 1 (05:16):
That's right.
There's one that we've foundthat's called Product Yield.
We haven't tested ourselves,but this is one that is using AI
recommendations based on yourprevious Shopify data, so it's
going to then recommend productswithin your product pages,
within your shopping cart andwithin your checkout process for
relevant products that peoplehave previously purchased in the
past.
That is very likely to go withwhatever is in the person's cart
at the moment.
So, again, there will be a costinto this.
(05:38):
But if you think about well, ifthis is going to increase my
average order value, say, by 10,20%, then it's going to be
offset very quickly.
Speaker 2 (05:44):
Yeah, I think the days of you just picking what
the recommended products foreach product yourself should be.
Maybe trial this tool alongsidethat, so that you can let data
decide on what the next bestthing is.
I feel most people don't evenactually pick anything do they
yeah, no, it's just other thingsfrom the category that is.
I mean normally it's like hey,this category goes with this
category.
Speaker 1 (06:03):
It's the majority of what we see our clients and most
businesses do, so I feel likestuff like this just gives you
an edge on the competition.
Speaker 2 (06:09):
Yeah, so this is of use to the customer.
They're going to enjoy gettingthe corresponding or relevant
supporting product to add totheir cart, rather than getting
suggested an alternative to whatthey've already got in their
cart.
Speaker 1 (06:22):
Yeah, 100%.
You need to make sure it'scomplimentary.
So let's move on to the nextone, Next one.
So the next one we're talkingabout is one click up sales, and
this is.
These have been around for along time, but I just don't see
them often enough.
Speaker 2 (06:32):
Yeah, I agree.
When I've seen it work wellonce, I was like why isn't
everyone doing this?
It gets me every time when Isee it.
Speaker 1 (06:39):
It does, and I think that you offer, but it's a high
consideration product and so yousit in there and you put a
timer on it and they can't makea decision because it's not an
impulse buy.
So you want to make sure whenyou're considering what it is
you're going to put on your cartas well on your completed
checkout page, make sure it's animpulse purchase, so it's a low
(07:01):
cost, high margin product.
So that way you can just bumpyour average order value up,
customer doesn't have to thinktoo much about it and you're
adding something that'scomplementary to what they've
already purchased.
Speaker 2 (07:09):
And to give some clarity around how that process
actually works.
When you've checked outnormally at a store and you get
the thank you page instead ofjust getting a thank you page,
the site and the app that'sconnected to do one click upsell
remembers all of your creditcard data and your postage
information and just asks if youwant this extra product, you
(07:30):
can add it to the order withouthaving to go through the process
again.
We've got it all here, ready togo.
Just click this button once andit will add to your total order
.
It's pretty amazing because yougo, yeah, why not?
That's it.
Speaker 1 (07:40):
That's it, and it's just got to be the right product
there, doesn't it?
Because you don't want to haveto think too much about it, and
so selecting that product is keySort of hack around this as
well, because the platforms thatdo do this they, I think,
simplified pages.
They charge a percentage of theactual upsells, so it can be a
bit of a it's not costly.
I mean, if you're going to getthe sales anyway I mean you're
still increasing your sales youwill get those extra fees.
(08:00):
But a way around this that wefound that can work as well is
set up an email automation, apost-purchase automation.
Then what you do there ispeople complete their purchase.
They don't see the one clickupsell there, but then you can
have an email that will go outimmediately and say hey, by the
way, would you like to add thisto your order?
If you complete the purchasewithin the next two hours or
four hours or whatever it is,that is going to give you enough
time to identify this is linkedto this order so it's not
(08:22):
duplicating your orders.
And then you're sending out twopackages, double shipping.
So it is a hack around.
It's not exactly as clean cutbecause they do have to go back
through and purchase.
It's not going to be a oneclick, but it is getting you
around that percentage thatyou're going to have to pay as a
free option there.
Speaker 2 (08:36):
And look, it could even be worthwhile testing both.
You know, if you didn, I'll getthem on the next one as well.
Speaker 1 (08:42):
There's something that I hate, though, when I see
these one-click, like we weresaying when it's done well, it
works really well, but I hatethe ones that are just like hey,
would you like this?
No, would you like this?
Speaker 2 (08:49):
No Would you like this and it just keeps going.
Speaker 1 (08:59):
You just fuck off and give me my confirmation.
I just want worst.
Speaker 2 (09:02):
Do you want a car hire?
Speaker 1 (09:03):
I'm like what's going on.
It's got to be relevant andjust make it easy.
Speaker 2 (09:07):
Yeah, absolutely so.
As far as platforms goes forthis, james mentioned one but
you can just search One Click,upsell and Shopify and it's
going to be multiple platforms.
Speaker 1 (09:16):
I think it's actually called One Click Upsell Shopify
, like that's basically the appplugin, that the app plugin,
that's the other option, so thatworks.
Speaker 2 (09:22):
The next one loyalty programs, but with a twist.
Do you want to take us throughthe twist, james?
Speaker 1 (09:27):
Yeah.
So I mean you just want to makesure you've got exclusive tier
perks.
You don't want it to just belike hey, join our club, sign up
for an email and now you're in.
You want to have it kind of, Iguess, like here in Australia,
the Qantas Club or your frequentfly airline point programs,
where you're sort of alwaysstriving for the next tier
because you know that there'sadded benefits that you're going
to receive from it.
So if you can picture, you'rein the cart and you're like all
(09:47):
right, cool, if you purchase XXand X, you're now going to get
access now for lifetime freeshipping.
Or you're now going to getearly access to our sales if
it's a very high demand.
You sell out quickly in salesperiods, so make sure that
you're setting getting people towant to add more points, add
more spend to be able to levelup into the different categories
.
Speaker 2 (10:06):
Yeah, it monitors your customers and shares with
them how much you value them byallocating them points and
giving them extra perks.
I think it's fantastic.
One of our clients is veryadvanced in the e-commerce space
is Jericho.
They sell beard butters andoils grooming products for your
beard.
They have a platform in placethat is building this tiered
(10:29):
approach and people advocates ofthe brand take it really
seriously.
They want to see their tiergetting up to the next level and
they're buying all differentscents and it's important to
them.
It becomes a really valuablething to have that ongoing
connection with the customer100%.
Speaker 1 (10:45):
And yeah, I mean it's adding value, right.
So all these things that we'retalking about here are trying to
add value to the customer'swell.
It's not trying to just extractextra dollars out of it just
for the sake of increasing yourIRB.
Every one of these strategiesis also trying to provide
something that is of relevance,it's in line with what they're
looking for and you're not justadding bullshit extra charges or
whatever just to increase thataverage order value.
Speaker 2 (11:04):
And, I think, the loyalty programs.
They're going to be tied to ournext lever, which is lifetime
value, or customer lifetimevalue as well as average order
value.
So a double hit there, yep,100%.
So let's move on to the lastone for today.
Speaker 1 (11:19):
Okay.
So bundling products and thisis one that I think it kind of
feels like a no-brainer.
I feel like it's like you knowit makes sense.
If you're going to, you've gotproducts that are complimentary,
why not put them in togetherinto a package and get people to
purchase them?
Just don't see this done wellenough or often enough.
It can have such a massiveimprovement in your average
order value, especially if theyare hey, like if you buy this
thing, that everybody else isbuying this other thing.
Why not just put a slightlycheaper price and then make it
(11:41):
so it's just a single purchase,rather than have a comeback and
do it as an upsell or somethingelse and just bundling up your
packages to be able to increaseAOB?
Speaker 2 (11:48):
Yeah, an example that same client the Beard Oil and
Beard Butter, beard Care brandJericho.
They introduced what they callthe wall of Jericho, which is
all of their scents together inone box, just smaller, almost
tester size versions, droppersof the scents.
But people who love the brandthey might already have one or
two of those scents.
They're buying this wall ofJericho to have the whole set.
(12:10):
It's more than just bundlingexisting products.
They found a way to bundle theminto one box, so there's
creative ways of doing it.
And then there's theold-fashioned way of going.
Well, if you're buying a beardoil, maybe you'd want a beard
butter as well, and potentiallyyou'd want a brush or a beard
straightener.
Let's turn that into a Father'sDay bundle or a gift bundle.
Speaker 1 (12:31):
Well, that's it, and gifting for the purpose of
gifting.
That's another reason to bedoing it, because sometimes you
just don't know what to buy andyou jump on a store and it's
very clearly packaged up andit's like the perfect bundle for
the person who has this need.
Then why not You're just goingto buy that, rather than a
single product or trying to workout what you need to buy for
this person?
Speaker 2 (12:47):
Yeah, absolutely, and you could go.
Well, I know they like thisbrand or this thing.
I'm just going to get this andthey get a bit of everything.
Speaker 1 (12:52):
Yeah, and I think when you're actually looking at
your bundling strategy, thinkabout it in as many different
ways as you can.
So looking at it as per thegifting solution, or looking at
as per well, this is for yourbeard one, it's a whole solution
for your grooming needs.
Yes, it's making it convenient,but then when we're looking at
see how big you can go as well,because then maybe look across
categories as well so you mightfind all right, well, if they
(13:13):
buy this and this is also goingto be very relevant for the
person ideally going to get theminto and interested in the
other category they have so ifyou're talking about beard oil,
so if you're talking about beardoil, you might have some hair
grooming products or something.
This could be an entry-levelproduct to get people interested
, and then they could become afan of this product category too
.
Speaker 2 (13:28):
I think it's also important to share the value
delivered if you bought it as abundle.
Speaker 1 (13:32):
Yes.
Speaker 2 (13:33):
And also keep in mind that if you have that free
shipping over a certainthreshold in place, this is
another way of getting that userover that threshold.
So they're going to be thinkingwell, I get $10 off for free
shipping and I'm getting thisadded value anyway by getting it
in a bundle.
It's win-win and the averageorder value goes way higher than
if they were just coming forthat one thing.
(13:54):
That's it.
Do it Okay.
Speaker 1 (13:58):
So if you're not doing any of these things.
Obviously, you're just notgetting the amount of sales that
you could be from every visitorthat's coming through your
website, each one of theseepisodes.
At the moment, what we'retalking about is if you look at
implementing a number of thesedifferent things.
Like we said right at the start, we're trying to even just set
the baseline as increasing eachof these metrics, just say by
10%, as a starting point.
So if you think about what youraverage order value is right
(14:19):
now, implement any one of these.
It's likely to increase yourAOV by 10%.
Next week we're going to becovering off on conversion rates
.
Speaker 2 (14:25):
That's a big one that's just a direct lever to
more money.
That's right.
Speaker 1 (14:29):
So we want to make sure that now we've got people
that are coming through.
We've talked about the trafficchannels.
We're now increasing ouraverage order value.
Now we want to be convertingmore of them.
Yeah, great.
Speaker 2 (14:36):
So we covered free shipping, ai product
recommendations, post-checkout,upsell, loyalty programs with
tiered perk levels and bundlinginto packs.
That's the average order valuesession for today.
That's Digital Horizons forthis week.
Thanks for watching, thanks.
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