When advertisers talk about ROAS, most think about cutting costs or improving targeting. But there’s another lever that often goes unnoticed: Average Order Value (AOV). Simply put, AOV is the average amount a customer spends each time they purchase. Even a modest increase in AOV can significantly improve your ROAS, without requiring more ad spend.
Consider this: if your current AOV is $50 and you’re spending $1,000 on ads that bring in 100 customers, your revenue is $5,000. That’s a 5:1 ROAS. If you raise your AOV to $60 with the same number of customers, your revenue becomes $6,000 — instantly increasing your ROAS to 6:1. Same spend, same customers, better results.
The Statistics Behind It
-
According to Shopify, increasing AOV by just 10% can often boost overall profits by more than 25%, since the additional revenue doesn’t require additional customer acquisition costs.
-
Adobe’s Digital Economy Index reported that customers who take advantage of upsell offers spend on average 20–30% more per transaction.
-
Businesses that implement cross-selling strategies see, on average, a 3–5% lift in AOV, which compounds heavily over time.
These numbers show why focusing on AOV is a high-leverage strategy. You don’t need more traffic — you need better monetization of the traffic you already have.
Proven Ways to Boost Your AOV
-
Upselling and Cross-Selling
Offer customers higher-value alternatives or complementary products at checkout. Done right, this feels like added value rather than a pushy sales tactic. -
Bundles and Packages
Create product bundles that make sense for your audience. Shoppers often prefer pre-made combinations, and they’re willing to pay more for convenience. -
Free Shipping Thresholds
Set a free shipping minimum just above your current AOV. For example, if your AOV is $45, offer free shipping at $60. Many customers will add more to their cart to avoid shipping fees. -
Limited-Time Offers
Encourage larger purchases by offering discounts on orders over a certain amount. Scarcity and urgency can drive higher spend per customer.
Why This Improves ROAS Directly
Improving AOV boosts the numerator in your ROAS equation (revenue) without touching the denominator (ad spend). This means even small increases in customer spend can have an outsized effect on your overall advertising performance. In a world where ad costs keep rising and targeting precision is decreasing, AOV gives you control where you need it most.
Related Articles to Explore
If you found this article useful, you’ll also benefit from these resources on LeadEnforce:
-
Custom vs Lookalike Audiences: What Works Best for Facebook Campaigns?
-
How to Use Facebook Detailed Targeting to Reach Micro-Niche Audiences
Final Thoughts
If you want to improve your ROAS, don’t just look at ad optimization. Look at how much each customer is spending. Average Order Value is the lever that can multiply the impact of every marketing dollar you invest. Start implementing small changes today, and watch your ROAS rise without increasing your ad budget.
