For e-commerce stores, increasing the Average Order Value (AOV) is a key strategy to boost revenue without having to acquire new customers. While attracting more visitors and converting them into customers is important, maximizing the value of each sale can make a huge difference to the bottom line. Facebook ads, with their advanced targeting features and creative capabilities, can be a powerful tool for increasing AOV.
In this article, we’ll explore the different ways e-commerce stores can use Facebook ads to increase their Average Order Value and provide actionable strategies for better results.
1. Use Dynamic Product Ads to Upsell and Cross-Sell
One of the most effective ways to increase AOV using Facebook ads is by showing personalized product recommendations. Dynamic Product Ads (DPAs) allow e-commerce stores to retarget visitors who have viewed specific products on their site and show them related items they are likely to buy. This is where upselling and cross-selling come into play.
Upselling is when you offer a more expensive version of the product a customer is already interested in. Cross-selling involves offering complementary products that go well with the items in their cart.
For example, if a customer is looking at a pair of shoes, dynamic ads can show them matching accessories or other products they may need. This approach is effective in boosting AOV by encouraging customers to add more items to their cart.
What to do:
-
Set up Dynamic Product Ads on Facebook to showcase products users have previously viewed or added to their cart.
-
Use upselling and cross-selling techniques in your ad copy and visuals.
According to Facebook, businesses that use dynamic ads to retarget potential buyers see a 30% increase in sales.
2. Leverage Facebook’s Carousel Ads for Multiple Product Offers
Carousel ads are a great way to display multiple products in a single ad. For e-commerce stores looking to increase AOV, this format allows you to showcase a range of products within one ad unit. By displaying a combination of bestsellers, add-on products, or items that are frequently bought together, you can tempt shoppers to purchase more than one item in a single transaction.
Using carousel ads for cross-sells and bundles allows users to browse through multiple options without leaving the ad, which is especially effective when they see products they didn’t initially consider.
What to do:
-
Design carousel ads to highlight product bundles or related items that encourage higher-value purchases.
-
Include a compelling offer or discount on bundled products to drive interest and conversions.
Research indicates that Facebook carousel ads can increase click-through rates (CTR) by up to 10x compared to static image ads.
3. Offer Limited-Time Discounts or Free Shipping for Minimum Purchases
A great way to encourage shoppers to increase their cart value is by offering limited-time discounts or free shipping for orders over a certain amount. Facebook ads are perfect for promoting these types of offers, as you can target users who are already interested in your brand or products.
By presenting a time-sensitive offer in your ads, you create a sense of urgency, which often leads to customers purchasing more in order to meet the minimum required for the offer.
What to do:
-
Use Facebook’s ad targeting to reach users who are most likely to take advantage of your offer.
-
Highlight the limited-time nature of the deal and include a clear call to action that encourages them to spend more to unlock the offer.
Statistics show that 75% of online shoppers are motivated by free shipping offers, and customers tend to add more items to their cart when they are close to qualifying for free shipping.
4. Retarget Cart Abandoners with Special Offers
Shopping cart abandonment is a common challenge for e-commerce stores, with an average abandonment rate of 70%. However, Facebook ads can be used to re-engage these customers with special offers designed to encourage them to complete their purchase. Retargeting cart abandoners is an effective way to increase AOV, especially if you offer an incentive like a discount or additional product recommendations.
When you retarget users with Facebook ads who abandoned their carts, you can remind them of the items they left behind and provide them with an enticing offer to close the sale.
What to do:
-
Set up a retargeting campaign on Facebook to reach users who have abandoned their carts.
-
Include a special offer, such as a discount or free shipping, to entice them to complete the purchase.
According to a study by SaleCycle, retargeted ads can increase conversions by 70% for cart abandoners, and when combined with a discount offer, they’re more likely to increase AOV.
5. Target High-Value Customers with Lookalike Audiences
Another effective Facebook ads strategy to increase AOV is using Lookalike Audiences to target high-value customers. These are customers who have made larger-than-average purchases or bought multiple items from your store. By creating Lookalike Audiences based on your highest-value customers, you can target new users who are likely to make bigger purchases.
What to do:
-
Create Lookalike Audiences based on customers who have already made large purchases or have high AOV.
-
Target these audiences with ads promoting high-ticket items or bundles to encourage larger purchases.
A study by Facebook found that Lookalike Audiences are up to 1.5x more likely to convert than other types of targeting, which helps increase AOV by reaching customers who are most likely to spend more.
Final Thoughts
Increasing your Average Order Value is a smart and efficient way to boost your e-commerce store's revenue without needing to acquire more customers. By leveraging Facebook ads with strategies like Dynamic Product Ads, Carousel Ads, special offers, retargeting, and Lookalike Audiences, you can increase your AOV and drive higher sales volumes.
