Increasing the Average Order Value in an e-commerce store is not an easy job. It is a struggle that every e-commerce store owner shares, this is for sure. If you are an e-commerce store owner, too, I bet that you’ve also been in the same shoes since you started your business, you might be there just now, or this is something that you have to face day by day.
If you, too, are one of those businessmen who spend thousands of dollars to get more visitors in the hope of more sales, by the end of this study, you’ll realize how you’ve been fooling yourself all along 🙂
Don’t get me wrong – I’m not saying that you should not spend a dollar on your marketing, on the contrary! Visitors are extremely important because, at the end of the day, they will be the ones who will get you the money. But what if you have put more work in making them stay and buy 3x more products that they intended to?
If you think that you can’t manipulate what your visitors put in their carts and that communicating discounts will hurt your business, after reading this study, I bet you’ll change your mind.
Just put yourself in the shoes of your visitors. Most of them arrive at the site with an intention to buy something, they have the desire, but they don’t know which product or products to buy yet. Just imagine, it’s your wife’s birthday, and you’d like to buy her some cosmetics but there are so many products to choose from that you fall into the ‘paradox of choice’ and finally you leave without buying.
You then go to another store and there you see the following offer:
Now this is what you’ve been looking for all along (you just didn’t know it until you saw it): you don’t have to waste more time looking around, you are satisfied because you’ll receive a whole gift set with a discount and your wife will be just as happy as you are now.
It’s as simple as that, nothing new there.
Most of your visitors arrive at your store with an intention to buy, but because there are so many products, they won’t always know which products to buy first without you showing them or communicating offers that will make them buy. You are the one who will have to show them the products that you would like them to buy.
In the first example, the store was well equipped, lots of products, great design, and marketing, lots of visitors. It only missed the one single essential point: that of communicating the right offer, to the right people (you) in the right time – thus making you go to the concurrence and increase their average order values instead of yours.
In the second example, the concurrence had lots of products, great design, but decided to cut off the budget that they spent on collecting visitors because even though they had a decent amount of visitors, they were just not able to convert them into buyers, let alone make them buy more and turn them into repeat buyers. Instead, they decided to concentrate on setting up personalized offers and messages to make their conversion rate better and increase the most important thing in the life of an e-commerce store: Average Order Value.
It’s all psychology: when the visitor is presented with the right products and the right offer at the right time, it is more likely to elicit that ‘now this is what I was looking for’ stimulating the all-important mix of emotions that leads them down the road towards purchase.
Now that you’ve seen why product recommendations are important; let’s see how HoneyGirlOrganics achieved a 5.4% increase in AOV just in the first quarter of 2018 and how they achieved to have 30% of their overall transactions coming from OptiMonk.
We’ve asked Sarina Erstad, the Online sales & marketing manager of HoneyGirlOrganics to talk about how their e-commerce store achieved an almost 20% conversion rate just in 2 months by offering volume discounts in the form of gift sets.
Hi Sarina, can you please, give us a quick overview of the company and e-commerce store?
Honey Girl Organics sells USDA certified organic skin care products handcrafted on the North Shore of Oahu, Hawaii, using beehive ingredients like honey, beeswax, pollen, as well as propolis and royal jelly.
Who is your target audience?
We see our target audience as health-conscious women from 25-65.
What were the obstacles you faced before getting involved in conversion rate optimization?
Reaching people, building our email list and getting website visitors to the checkout.
Where did you hear about OptiMonk?
Through other companies using Optimonk.
What were the best advantages you discovered about OptiMonk?
Building our email list and customizing pop-ups for various website pages.
What was the solution that you used OptiMonk for?
Building our email list and showing specific offers.
HoneyGirlOrganics used the following product recommendation popup (also shown in the example at the beginning) to increase their Average Order Value:
Offering discounts in the form of gift sets can be very effective because people love discounts even more if they can be applied to more than one product. Again, psychology 🙂
This popup is set up in a way that if someone clicks on the ‘Shop gift sets’ button they are taken to the sub-page that includes all the gift-sets available:
HoneyGirlOrganics setup the popup to appear both on PC and Mobile after spending at least 90 seconds on the page and opening at least 2 subpages, making sure that the popup doesn’t ruin the browsing experience. When the visitors spend enough time on the site and seen one or two products, the popup is shown to them:
They also made sure to only show the popup only once to a visitor:
As you can see, product recommendations, small promotions, discounts and complementary products can really convert. It all depends on the right setup, no hidden barriers 🙂
HoneyGirlOrganics have shared some more info with us on their experience with OptiMonk.
So Sarina, what was the setup process for you like?
Who did you target with the campaign and which settings were used?
Our target is whoever visit the website, browsing a few pages.
How long did it take to achieve the first results?
Results came in immediately!
How did OptiMonk impact your core metrics?
Just in the first quarter of 2018, there has been a 5.04% increase in AOV with Optimonk
By using OptiMonk did you experience any increases in revenue or growth?
Yes, we have seen an increase in revenue due to Optimonk, 30% of our overall transactions have gone through OptiMonk in 2018
How has OptiMonk impacted your success? Your team’s success?
Optimonk has become a permanent app that we use on the website and we rely on Optimonk for conversion. It pays for itself and we love the simplicity of it.
What is your favorite feature or part of our product? Why?
Easy of use setting up a new campaign, and seeing impressions & conversions right away in the campaign list.
What would you recommend to those website owners who haven’t started saving their visitors yet?
If you haven’t tried out Optimonk yet, you’re missing out! This is the easiest app out there and it pays for itself right away! We never had any problems and customer service is outstanding.
To sum up: if you’d like to sell more, you must guide your visitors through the purchase process and show them the products that you’d like them to buy from you. Remember, it’s all psychology: if the ‘paradox of choice’ stands in the way, chances are that your visitor will leave without buying. HoneyGirlOrganics guided their visitors through the buying process and made 30% of their overall transactions coming from OptiMonk. You can achieve such a great percentage, too! Just remember: in most cases, it’s up to you what you will actually sell.
(Note: Do you have products you want your visitors to see? If so here’s the perfect chance to create a free OptiMonk account. Just click here and you can start building your own campaigns immediately.)