Case Study: Increasing Average Order Value (AOV) at E-Commerce Shop

Starry Jewelry is an online Jewelry Shop that specializes in selling rings, necklaces, and accessories. Despite experiencing steady growth in its customer base, E-Shop was facing challenges in maximizing its revenue potential. The company's management recognized that increasing the Average Order Value (AOV) could significantly boost its profitability. This case study explores the strategies implemented by E-Shop to increase Average Order Value (AOV) in just 3 days successfully.

1. Low AOV: The average order value was relatively low, indicating that customers were not purchasing multiple items or high-value products in a single transaction.

2. Competitive Market: E-Shop operated in a highly competitive market where customers had multiple options for purchasing jewelry accessories.

3. Seasonal Fluctuations: AOV varied significantly throughout the year, with peak seasons like Black Friday and Christmas generating higher AOV compared to the rest of the year.

- E-Shop introduced a loyalty program that rewarded customers with points for each purchase.

- These points could be redeemed for discounts or exclusive offers, encouraging customers to buy more to accumulate points.

- E-Shop implemented a minimum purchase requirement for free shipping.

- Customers were more likely to add additional items to their cart to reach this threshold, increasing AOV.

- The company periodically ran limited-time promotions, such as "Buy 2, Get 1 Free" or "Flash Sales."

- These promotions created a sense of urgency and incentive customers to purchase more items in a single transaction.

Loyalty Program:

Minimum Purchase Requirement for Free Shipping:

- This strategy led to a 46% increase in AOV, as customers added items to their cart to qualify for free shipping.

- Limited-time offers generated a 46% increase in AOV during promotional periods.

E-Shop successfully implemented a multi-faceted strategy to increase its AOV. Through bundling, cross-selling, loyalty programs, minimum purchase requirements for free shipping, and limited-time offers, the company saw a significant boost in AOV and, consequently, increased revenue and profitability.

The lessons learned from this case study highlight the importance of understanding customer behavior and using targeted strategies to encourage customers to spend more per transaction. E-Shop's experience demonstrates that a combination of tactics can be highly effective in increasing AOV and improving overall business performance.