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March 3, 2023

How to Better Drive Higher AOV and Repeat Purchases

a notification encouraging repeat purchases

Customer acquisition costs can be a huge line item for e-commerce businesses of all sizes. Finding new customers and convincing them to buy your products is one of the most challenging aspects of any business—and a huge portion of most marketing budgets.

All businesses need to acquire new customers, but are you doing enough to retain your existing ones? Increasing your average order value and driving repeat purchases is a smarter way to increase your revenue and bolster sales. But first, you have to find creative ways to incentivize them to click “add to cart.”

Ways to Increase Average Order Value 

Average order value is a vital metric for businesses across industries. AOV measures the average amount customers spend every time they make a purchase. Regularly evaluating your AOV can help you more easily assess the impact of advertising spend, make pricing adjustments, and track customer spending habits.  

Try these strategic methods to increase your average order value and encourage repeat purchases. 

Always Upsell

Upselling is an easy way to get your customers to spend more per purchase and increase your AOV. Offer premium subscriptions, add-on opportunities, or an extra discount when products are purchased together. You can also add cross-selling opportunities at check-out by showing customers related products they might have missed. Making these small changes can help entice customers to buy more than they originally intended and up your AOV in the long run.

Create Product Bundles

Similar to upselling and cross-selling, product bundles are a cost-effective option for consumers that also raise their order value. Grouping two related products together at a discounted rate make customers feel like they’re getting a deal, and also increases your AOV for a win-win solution. 

Offer Free Shipping

Once you’ve calculated your AOV, set a free shipping threshold a bit higher. If your current AOV is $40, for example, offer free shipping starting on orders $50 and over. Free shipping is an appealing incentive for shoppers, and it can help encourage them to add another item or two to their cart to meet the minimum—and, in turn, up their AOV without a lot of extra legwork. 

Start a Loyalty Program

Loyalty programs allow you to build a strong, ongoing relationship with your customers. By allowing them to accrue points for every dollar spent, they’ll have more incentive to purchase additional items. You can also create a tiered program that has added perks at each level to encourage them to spend a certain amount annually, which can help increase your AOV. 

Utilize Discounts & Limited-Time Deals

Creating a sense of urgency can help people finally buy those items that have been sitting in their shopping cart. For customers who are on the fence, limited-time offers like added discounts or free expedited shipping can be just the thing they need to finally make a purchase. Try creating site-wide discounts or buy more, save more promotions that will encourage people to purchase more because they feel like they’re getting a deal. This can help bump up your AOV and increase repeat purchases.  

Offer a Branded Credit Card

Like loyalty programs, branded credit cards help foster a deeper connection with your customers. These branded cards, also sometimes called private-label credit cards, are issued by individual retailers to offer customers the “richest” possible perks. From bonuses to added discounts to more lenient return windows, there are many benefits for consumers. 

For retailers, branded credit cards incentivize customers to spend more money, which can lead to higher AOV and improved customer lifetime value. Tandym makes it possible for retailers to easily create their own store credit cards. With low transaction fees and easy set-up, it not only helps retailers reduce processing costs but also increases AOV and repeat purchases for a positive impact on their bottom line. 

Learn more about Tandym can drive repeat purchases today.

Hannah Warne is a copywriter and journalist who loves bringing brands to life. With a background working for both global brands like Tiffany & Co. and Groupon and local businesses, Hannah loves to find the perfect words to tell the best story. Based in New York City, she loves to explore the city’s different neighborhoods by way of new restaurants, coffee shops and bakeries.


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