Yesterday I did my first keynote at an in-person event in Miami.

I stood up in front of a room full of 100+ entrepreneurs who are all building and growing online businesses

I was nervous but as I started talking the rush fizzled away and I got into my bag

This week I want to challenge all of you to do something you haven’t done before

Whether it is personal, professional, or even a fun experience like skydiving.

Get yourself outside your comfort zone and force yourself to evolve

Now enough talking!

Today’s topic is interesting.

I prepared my 2024 roadmap for one of our brands, and one of the main goals was increasing revenue (obviously)

But growth in terms of AOV - our current AOV for this brand fluctuates around $50-$60 but the goal is to 2x that this year

Today’s newsletter is all about the strategies I’m going to be testing to do that

So let’s get into it.

Turning average orders into more valuable orders

The AOV Dilemma we all work so hard to push traffic to our website then we work harder to get them to buy but what a lot of us don’t realize is our customers aren't splurging the way we want them to.

They're consistently sticking to lower-than-desired order values.

Bumping up AOV is one of the key KPIs we need to monitor as our businesses grow.

The idea is simple: get people to spend more per order, the more they spend the more we make

Picture this: Your store brings in $2,000 from 100 orders; your AOV is $20. How much better would it be if the same 100 orders were worth $4,000

A LOT!

One thing I’ve learned over the years is its easier to sell to current customers than it is to find new ones.

So let’s talk breakdown the gameplan!

The Traditional AOV Fix:

The most common play in the book is the “free shipping method” on orders over X. I like this but it’s basic and it barely works.

Sure it can work and boost revenue, but it doesn't always guarantee the juiciest returns and it’s pretty hard to track.

I’m going to optimize our purchase journey instead and just using this as a “plant the seed” moment.

Taylor Holiday gives a good perspective on AOV, instead of looking at it from one measure, he recommends looking at it from three measures:

1. Mean (average order value)

2. Median (middle order value)

3. Mode (most frequently occurring order value)

Why? Because the mean might not represent your customers' typical behavior. Focus on moving those modal orders up—the ones that occur most often.

This is something I’ve implemented this week on our end - each MODE now has personalized upsells - doing that has given us much more clarity on our customer cohorts compared to just upselling the same sh#t to everyone.

AOV is not the North Star.

It's like counting calories—the focus should be on the quality, not just the quantity. Some calories are better than others, and it's best to cut down on the not-so-great ones.

Now let's break down the 4 main pillars I plan to work on to double that AOV:

1. Setting up Order Minimums for Free Shipping and Gifts:

• Increase the perceived value of free shipping by adding gifts for orders exceeding a certain value.

• Calculate the threshold based on modal order values.

• Avoid setting it too high, work on marginal increases instead of unrealistic jumps.

2. More Product Bundles:

• Create product bundles that cost less than buying items individually

• Test bundles the same way we do with ads - if customers don’t bite keep irritating and launch new options

Here’s a shop all page from a 450 Million dollar brand BLOOM

3. Upsell and Cross-sell:

• Create more info products and offer them at “steal” prices

• Offer low-value upsells for higher purchase likelihood. (more sample kits, mini accessories, and anything else that makes sense under $10

4. Live Chat Support

I connected with some brand owners recently and it opened my eyes on how they use customer support as a sales team - specifically in live form.

1st Phorm does this well.

• Live chat can boost cart values by 10% to 15% by easily walking somebody through a purchase and giving them a “live offer to buy more” and helping high-intent buyers make informed decisions.

When you focus on AOV, you're targeting customers who already want to buy.

They're at your doorstep, ready to shop.

Hope I’ve opened your eyes to do something different today, until next week.

Keep the Moementum!

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