EntrepreneurshipGrowth hacker Jonathan Maxim shares the top 3 ways...

Growth hacker Jonathan Maxim shares the top 3 ways to improve eCommerce Average Order Value

Uncommon truth: Most of the top advertisers don’t rely on making the first sale profitable

One of the biggest buzzwords in the marketing world is return on ad spend (ROAS).

This is basically the amount of revenue you get back when you spend on advertising, whether that’s Google, Facebook, Instagram or any other ad platform.

Gaining back profit on your investment, especially as an eCommerce brand is critical. But it’s not easy.

So, if you’re struggling to make ads profitable, and if ROAS is your core metric, then increasing your Average Order Value (AOV) is vital, explains growth hacker Jonathan Maxim.

Jonathan runs a boutique marketing firm called K&J Growth Hackers, and is responsible for campaigns like TikTok’s massive 2019 user acquisition expansion, Mark Cuban’s brand Prep Expert scaling one campaign to over 100k in additional company profit per month, and many more.

The secret, he explains is in increasing the amount customers purchase on each transaction. Here’s how.

Test and learn on various price points

 The first and most critical step to gaining the best profit margins for your eCommerce brand is to make sure you’re priced properly among your target customers.

“A lot of budding eCommerce brands price their product at a premium from the outset. This is fine, but it can make getting started and making ads profitable a challenge. Simultaneously, a lot of brands that are established could demand a much higher price point and are losing out on great margins. So, it’s vital that you test your customer’s price elasticity.” Maxim explains.

The simplest way to test multiple price points in isolation, without telling the whole world is to:

  • create a unique landing page outside of your core eCommerce store for your best performing product
  • Once done, most landing page builders offer an A/B testing functionality
  • Choose that, and then make your price point 20% lower, normal and 20% higher on three different landing pages

Using Facebook/Instagram ads, spend around $100 in ads and send traffic to each, using the same creative, copywriting and all aspects of the campaign. Isolate only the price point.

From there, the data will tell an obvious story. Each of the three product price points will either have more or less ROAS than its neighbor.

Add product bundles that help complete the customer experience

Now that you have some unique landing pages for your best performing product, you have a lot of flexibility from an eCommerce perspective.

Think about your customer and why they buy. Ask yourself, which products, when combined will complete the issue the user is trying to solve.

You can also look at products that are commonly bought together, in your analytics.

Say for example, you’re selling a cake mold. Anyone who needs a cake mold will be baking a cake. So, they’re going to need a nonstick spray, maybe a spatula, and a cookbook.

Therefore, if your cake mold is $20, it would be easy to increase your average order value to $40 by adding in a $7 spray, a $9 spatula and a $12 cookbook. And guess what? Your customer will enjoy the convenience.

If your ROAS is 2X on a $20 purchase, getting that to 4x+ is very realistic, which would add a lot of margin and revenue to your campaign.

At scale, a campaign generating $200,000 per month, would shoot right up to $400,000 without any additional ad spend.

 Add Upsells and Downsells 

In the same vain as above, eCommerce brands can add upsells and downsells that help complete the customer experience more.

Remember, once someone has their wallet out, it means they trust you and are ready to buy. Usually, they’re willing to spend much more than you’re getting on just a single product purchase.

An upsell (pitch a higher price product) or downsell (if they decline the uspell, pitch a cheaper product) is an additional sales page a user hits after adding the initial product to their cart and beginning the check-out process.

Same philosophy here: offer them a deal for buying another product that will help solve their bigger need.

Jonathan explains, “Upsells make sure you’re getting every ounce of value out of your investment in marketing. Leverage the fact that customers are excited and serve them as best you possibly can, given your product portfolio. The customer will be happier, and so will you.”

Making it all work

As with anything, information is good. Applying those learnings is great. But that’s also the hard part. So do more research on improving AOV, consult with an expert and give it a try.

There are countless platforms out there that make all of the above a breeze, if you’re willing to learn a little. However, if you try it blind, things could seem quite complex.

So do your homework, or talk to someone who has, and give it a try. And, you could be in for dramatically better results.

Samantha Schnurr
Samantha Schnurrhttps://www.newsalarms.com/
Samantha started her editorial career chasing celebrities as a magazine editor. Along the way, she also started chasing passport stamps, writing for Travel + Leisure, Condé Nast Traveler, Airbnb Magazine, Lonely Planet and Washington Post. She now covers travel and pop culture while wandering the world — often reluctantly running races.

Latest news

Breaking Barriers: Canada Visas Expand Services to Iceland, Ireland, Luxembourg, and Malta

Ottawa, Canada, 28th March 2024, Canada Visas, a leading facilitator of visa services, is thrilled to announce its expansion...

Seize Canadian Adventure: Simplified Visa Applications for Barbados, Brunei, Cyprus, Finland, and Hungary Now Live!

Ottawa, Canada, 28th March 2024, In a groundbreaking move, Canada-Visas.org is proud to announce streamlined visa application services tailored...

Unlocking Boundless Opportunities: Canada Visa Facilitation for Global Citizens

Ottawa, Canada, 28th March 2024, In a bid to foster global connections and open doors to unparalleled opportunities, Canada-Visas.org...

Unlock Seamless Travel Experience with eVisa-US:Gateway to Effortless US Visa Processing

Washington, US, 28th March 2024, In today’s global landscape, seamless travel has become a necessity rather than a luxury....

New Online Portal Revolutionizes US Visa Application Process for International Travelers

Washington, US, 28th March 2024, In a groundbreaking development for international travelers, eVisa-US has launched a state-of-the-art online platform...

New Opportunities Unveiled: Us Visa Simplified for Swiss Citizens

Washington, US, 28th March 2024, In a groundbreaking move set to redefine the landscape of US visa application processes,...

Must read

Hungama joins forces with BharatBox for an Unprecedented Digital Odyssey

BharatBox, in collaboration with The Sandbox announces the launch...

BharatBox & Mahabharata: A Metaverse Renaissance in Storytelling Brilliance

BharatBox, the India destination within The Sandbox, in collaboration...

Unlocking the Power of Belief: Ramsena Coin Introduces the First Hindu Cryptocurrency and Virtual Revolution.

Ramesena Coin, the world's biggest virtual connection of Hindutva,...

USD 19,500, the new key price of bitcoin to start an upward movement

Key facts: In the past, $19,500 has been a resistance...

Blockchain IDOs and Presales You Should Know About

There’s never a lack of new projects opportunities when...

You might also like
Recommended to you