While retailers zero in on driving customer acquisition and celebrate as new orders roll in, they often overlook a goldmine left sitting in the shadows of order confirmation: average transaction value (ATV). ATV may not be a priority KPI for many retailers, but it is a forgotten opportunity to significantly impact revenue goals and maximize business value.
But boosting ATV isn’t easy – driving consumers to make higher volume and value purchases requires retailers to establish more authentic and transparent one-to-one connections with customers. We’ve outlined 10 quick and proven tips to help you increase basket size while building customer trust and lifetime value.
1. Activity Feed
Word-of-mouth is still the most trusted and effective form of marketing (Digital Intelligence Today). Increase ATV by showcasing a real-time feed of valuable customer actions – like favoriting an item, leaving a review or making a purchase – to surface popular items, generate on-site word-of-mouth and boost product discovery.
Bonus Points: Highlight actions taken by members of consumers’ social circles within the activity feed for more compelling and influential consumer connectivity.
2. Event-based Campaigns
Automatically trigger customer outreach based on specific user actions to reach consumers at the most influential moments of the decision making process. For example, if a customer removes an item from her cart during the checkout process, send her an email with a special discount code, or text her a reminder about an item she recently browsed on-site the next time she checks in to your store on Facebook.
3. Mobile Commerce
There is no better channel to influence real-time buying decisions than mobile, and mcommerce is growing at a promising clip. 81% of smartphone purchases are “spur of the moment” (Google), making it the perfect medium to suggest add-ons relevant to users’ spontaneous mobile purchases based on their real-time needs and locations.
Bonus Points: Reduce barrier to mobile entry and checkout by enabling consumers to easily register and login to your mobile site or app using one of their existing social media accounts.
4. Two-way Dialogues
Give users a fast and direct way to pose questions about the items they are considering. Incorporate live chat on your site if possible, or implement and consistently monitor user comments. Developing personal rapports and relationships with customers makes consumers feel more comfortable with their purchase decisions.
5. Ratings & Reviews
Conversion rates are 105% higher for users who interact with ratings and reviews (Prestige Marketing) – that’s probably because consumers trust peer reviews 12x more than manufacturer descriptions (Brick Marketing). Showcase customer feedback across product pages to boost consumer trust and prove that adding those extra items to their carts is worth it!
Bonus Points: Increase effectiveness by personalizing reviews to feature those left by customers’ individual social connections. After all, 81% of people say that posts by friends on social media influence their purchase decisions (Forbes).
6. Personalized Coupons
You have to spend to save, and nothing urges consumers to add a little something extra to their shopping carts like an exclusive discount – especially if it saves them money on something they actually want to purchase. Tailor coupons to consumers’ on-site behaviors and social interests, and they’ll be happy to click “add to cart.”
7. Customized Product Recommendations
59% of shoppers believe it’s easier to find more interesting items on personalized retail stores (Get Elastic), which in turn makes them likely to purchase larger volumes of products at greater speeds. Showcase personalized product showcases when consumers login to your site or app, as well as additional recommendations based on users’ current shopping cart items on checkout pages.
8. Transparent Communication
Nothing makes consumers more reluctant to purchase than lack of trust in your brand and their privacy. 77% of online shoppers would trust businesses more if they explained how they use their personal information (Get Elastic), and hidden charges are the number one reason for cart abandonment (Econsultancy). Encourage consumers to trust you with larger dollar amounts and feel comfortable purchasing big ticket items by being completely transparent about shipping fees, data collection processes, and more.
9. Loyalty Programs
Give consumers incentive to become high value, repeat customers by creating a loyalty program that rewards buyers for shopping and interacting with your brand. This strategy works to build ATV over time for a lifetime of overflowing carts.
Bonus Points: Gamify your loyalty program by turning it into a highly interactive experience that keeps consumers engaged and coming back for more. Offer consumers rewards for completing a series of actions that leads to KPIs like bigger basket size. Gamification has been shown to increase valuable site actions by 29% (Gigya).
10. Social Commerce
Just because the actual checkout process doesn’t take place on-network, don’t overlook social media as a key channel for increasing basket size. Social networks are highly valuable for driving product awareness and discovery, and are becoming an increasingly influential part of the shopping experience. Need proof? As of Q4 2013, one pin on Pinterest was making brands up to 78 cents – a 25% YOY increase (etouches).
Increasing ATV is a key yet often overlooked opportunity for retailers to significantly improve business performance. Follow these ten tips to start building the types of genuine, personal customer relationships that lead to bountiful basket sizes.
By Tobias Meyer-Grunow