Gamifying Average Order Value

Challenge:

It is always a misconception by brands that we will do a competitive pricing and try to acquire more consumers. While it might still work, most of the time it doesn’t because with the increasing acquisition costs it’s very hard to balance the ROI. One very important lever in order for a better ROI and also to sustain the increasing costs is Average Order Value. Now most of the times, in order to push the AOV everybody suggests that we will have to sell combos, with a 3 seconds hook time, it’s hard to convince the customer for a single product purchase, which is why most of the times combos don’t work well for your cold audiences.

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Solution:

We were able to shoot up the AOV by 31% by using a simple technique: gamification of the cart and making it more visually appealing. We made it convenient for the user to add discount codes and best-seller products.

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Results: 

By implementing the Shopify cart app and making the cart more visually appealing and user-friendly, we were able to increase the AOV by 31%. Compared to the previous month, 7% of total orders came with a 1200 ₹ basket size due to a discount code that only revealed after the cart reached a certain value. By focusing on increasing the AOV rather than solely relying on competitive pricing, we were able to balance ROI and sustain the increasing costs.

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