For retail brands, increasing the number of orders from new and existing customers is crucial. However, boosting the average order value can be even more impactful for long-term profitability.
Rather than relying solely on acquiring new customers, retail brands can leverage the power of marketing automation to encourage existing customers to spend more with each transaction.
By implementing personalised, data-driven marketing automation strategies, retail brands can maximise the value of every sale without additional marketing costs, resource, or manual effort.
Sounds great, right?
If you agree, then read on to learn six proven ways marketing automation can increase order value, helping retailers get the most out of every customer interaction.
Personalised cross-sell recommendations
One of the most successful ways for retailers to increase order value is through cross-selling, which boasts an impressive conversion rate of 60-70%.
By utilising data and insights into customers’ browsing and purchasing history, marketing automation tools can automatically generate emails that suggest useful complementary items based on a recent purchase.
For example, if a customer buys a new floor lamp, an automated email can be triggered immediately after purchase to recommend the appropriate lightbulbs for that specific item. Retailers could go one step further and also promote other items from that range, such as matching table lamps or lampshades.
By tailoring these recommendations to individual customers, retailers can encourage cross-sells whilst the customer is still highly engaged with the new purchase, which in turn, increases the order value.
Post-purchase upsell suggestions
The post-purchase window provides an excellent opportunity to increase order value, even after a sale, by suggesting upgrades that can improve the customer’s initial purchase.
For example, after a customer buys a computer, an email can be automated offering a discounted extended warranty or upgraded hardware to encourage additional spending.
These emails provide suggestions of relevant upgrades which the customer may not have previously been aware of, whilst also capitalising on their post-purchase engagement, increasing the chances of additions to the original purchase.
Bundling items with package deals
Package deals are a highly effective way to increase the perceived value of an offer, whilst also raising the total order value.
By packaging together related items and offering them at a slightly discounted rate, retailers can entice customers to purchase additional items which they may not have previously considered, whilst the customer still feels like they’re getting a bargain.
With the use of browsing and purchase data, marketing automation can target customers with packages based on recent products browsed or purchases made.
For example, if a customer has recently browsed a facial day cream, an email can be automated promoting a bundle that includes eye cream and night cream from the same brand. Offering the package at a lower price compared to buying each item individually.
By presenting these packaged options to customers, retailers can encourage larger purchases in one single transaction.
Dynamic discounts based on order size
Similarly, with marketing automation, retailers can trigger campaigns and notifications that incorporate dynamic content to promote discounts which change based on order size.
Through email marketing or landing page notifications, retail brands can offer escalating discounts depending on how much a customer spends, encouraging them to buy more in order to save more.
For example, an email could offer “10% off on orders over £100” to incentivise customers to increase their order size to unlock greater savings, leading to a higher average order value.
Higher spend incentives through loyalty schemes
Loyalty schemes are the perfect way to gamify increased order size by encouraging customers to make higher purchases to gain more rewards.
Through automated marketing campaigns, retail brands can notify customers when they’re close to reaching a reward tier or earning bonus points for making larger purchases.
For example, email marketing could alert customers that they’re only £50 away from earning double loyalty points on their next purchase.
This strategy encourages immediate purchases whilst also motivating customers to spend more per order to unlock the next reward, increasing the overall order value.
Basket abandonment emails featuring upsell offers
Whilst basket abandonment emails are already a proven strategy for recovering lost sales, boasting an open rate of almost 40%, incorporating upsell opportunities into these campaigns can drive even greater value.
With the use of marketing automation, retail brands can trigger email and SMS reminders to customers about the items in their online basket and also include offers that encourage them to increase their order’s total value.
For example, an automated email could offer alternative products at a higher price compared to the item abandoned, or feature free shipping for orders that exceed a certain threshold, both encouraging the customer to finish their purchase, and spend more in the process.
Next steps
Increasing order value can be an overlooked tactic in retail growth. However, with the right campaigns and marketing automation technology, this approach offers a powerful, scalable way to achieve additional ROI with little additional effort.
From personalised cross-sell recommendations to dynamic discounts and upsell opportunities, automated marketing campaigns allow brands to capitalise on a customer’s level of engagement when making a purchase, encouraging them to splash out a little more to drive higher revenue per transaction.
At Deployteq, not only do we provide an industry-leading marketing automation solution which has helped retail brands such as Wickes, Pendragon, and Wacoal to revolutionise their marketing, but we also boast a team who are experts in the retail landscape.
Get in touch today to get the most out of your customers’ orders.
