3 Ways you can Increase your AOV Right Now

Your weekly dose of best practices for building a successful DTC brand.

Welcome to this issue of The DTC Insider newsletter. πŸ‘‹

I hope you had a Merry Christmas with your loved ones ο»ΏπŸŽ…ο»Ώ ο»ΏπŸŽ„ο»Ώ

In this newsletter, you'll find:

πŸ’  One Thing the Most Successful DTC Founders Are Doing

πŸ’  3 Ways you can Increase your AOV Right Now

πŸ’  3 Levers To Grow Your Business in 2024

One Thing the Most Successful DTC Founders Are Doing

Here's one thing the most successful DTC founders are doing. πŸ’‘Β 

That many brands are not.

On The DTC Insider podcast, we've interviewed hundreds of DTC founders.

You see, we love finding patterns in successful people.

And, in this case, here's one we found:

They call their customers.

When we say "they", we refer to the founders.

That's right.

Depending on each case, they call...

...random customers

...VIP customers

...Those who bought once and never again

How often do they do it?

Some claim doing it every single day or week.

One brand has even made ads with these recordings, and it's working very well for them!

Don't you know where to start, or what to say in the call?

Here are some ideas:

1. Think your key questions ahead (ie. "did you buy for you or for someone else?", "why did you decide to buy from us?")

2. Come up with an opening line that works for them: after all, why should they give you their precious time? Think of gift cards, discounts, or just saying you're calling from the customer success department and you'd just like to know how happy they were and what you could improve.

TL;DR:

1. Call your customers, instead of guessing things they want.

2. Define your opening line and questions before calling them.

3 Ways you can Increase your AOV Right Now

First, you need to understand your value ladder.

Keeping in mind the products you need to push the most.

For some businesses, it's more linear than for others.

But the point is that you understand what people typically buy in their first order, then in the second, and so on.

Once you get this, you can apply some or all of these strategies to increase your AOV.

BUNDLES:

If you sell multiple products, you should consider creating bundles.

Sometimes, they're a result of your customers' behavior...

ie. you see that many customers buy products A, B, and C either in the same order or separate ones.

And some others, it could just be something that you think will work.

Regardless, creating great bundles will have 2 main effects:

  1. It'll increase your AOV

  2. It'll make your customers' lives easier

Don't know where to start?

Look at these 2 things:

  1. Your value ladder: if it makes sense for them to buy B after they bought A

  2. What your customers order over time: maybe you identify a trend in which many customers first bought A, and then bought B after a certain time.

IN-STORE UP-SELLS:

Bundles are great.

But it could get confusing for your customers if you promote too many of them.

This is where in-store up-sells come in handy.

When someone adds product A to their cart, you can suggest adding products B and C.

This is highly recommended, as can almost effortlessly increase the AOV.

POST-PURCHASE UP-SELLS:

This is a great instance to increase the AOV (and LTV, depending on the timeline).

After someone places an order, you could target them with an email flow.

And hook them up with products that go together with what they bought.

Sometimes, believe it or not, just educating your customers on how to use what they just bought - if makes sense - generates additional orders from them.

Even if you don't ask for them!

TL;DR:

There are 3 ways you can increase your AOV right now:

  1. Bundles

  2. In-store up-sells

  3. Post-purchase up-sells

3 Levers To Grow Your Business in 2024

For just a moment, forget about your ad account and email marketing strategies.

And think about the business layer of your DTC brand.

According to many authors, the 3 levers to grow a business are.

And in this episode, we'll go over each of them.

In this episode ofΒ The DTC InsiderΒ podcast, we discussed:

πŸ‘‰ The 3 levers to grow a business

πŸ‘‰ The 4-step framework to take action

🎧 Tune in to our latest episode: https://thedtcinsider.com/

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