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Increasing AOV by Offloading Inventory to Discount Buyers

In the previous chapter, we introduced you to Customer Insights and how its reports can be leveraged to increase a customer's lifetime value. We'll continue that discussion by focusing on the Low AOV Customers report.

Low AOV Customers report

Customers in the Low AOV Customers report are in the top 20% for number of orders but lowest 20% for spending. Similar to your best customers, these customer purchase often, but their carts are much smaller. These customers are either new to the store or only purchase items at discount rates. They provide a great opportunity to increase average order value and are equally as important in your loyalty and marketing efforts.


Getting Started

You'll be using the same methods as discussed in the previous chapter but tailoring them specifically for this customer segment. You'll want to export these customers and import them into your email marketing program as a new group. Be sure to label them appropriately, so you don't get them confused. For example, this group could be labeled as "Discount Buyers."

Our App Marketplace hosts a variety of email integrations, like Klaviyo, MailChimp, and Constant Contact if you're not currently using one.

App Marketplace

In the previous chapter, we made our best customers feel like VIPs by giving them the chance to purchase new products before they were released to the public. We accomplished this by segmenting them into a VIP customer group, restricting these new products to that group, then informing them through our email marketing tools.

You can provide this same level of exclusivity to your low AOV customers by giving them access to sales or promotions before they go live to everyone else. Since these customers purchase often, this group is perfect for offloading Cold Products or Non-Sellers. For example, let's say you're planning on having a weekend sale to liquidate surplus inventory. You can use the same VIP segmentation tactics and give your low AOV customers early access a few days before it goes live. It's a win-win!

You can drive their AOV and lifetime value even higher by incorporating a loyalty program as discussed in the previous chapter. Send loyalty program information and discount emails to these customers on a more regular basis. Many loyalty programs have built-in referral programs. Encourage these customers to spread word-of-mouth promotion with a variety of rewards for sharing your store with friends. Namely, give them offers to save more as they buy more — another win-win.

So far you have learned how to leverage Customer Insights into identifying your best customers, and whether they spend a lot or a little. However, Customer Insights can also be instrumental in helping you identify customers at risk of never coming back.

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