Tips & Trick - Average Order Amount

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   This is the second of a series of Tips & Tricks that we regularly publish to this Fourm. Today we will look at some ideas on how to increase your sales by focusing on the average size of the orders you receive. As you well know, there are three ways to increase sales on your store:

Increasing the number of orders 
Increasing the average size of the orders 
Reducing the amount of returns
Let's focus on (2). The Average Order Amount is a key factor in growing sales on your store, and it's something that you can work on right away.

The average order amount can be calculated as simply as TOTAL SALES / NUMBER OF ORDERS for a certain period of time. The View Sales by Date report in ProductCart provides that figure.

A common way to increase sales on your store is to invite customers to spend an amount that exceeds that figure. You can do so by providing them with a visible incentive to place an order that goes over that amount. Take a look at how Gap.com does this.

To set up this kind of promotion in ProductCart, take the following steps:

Log into your Control Panel and navigate to "Specials/Discounts > Discounts By Code".

Click on "Add New Discount"

Enter a description for your discount (e.g. 15% Off orders over $100) and an easy to remember discount code (e.g 15off).

Under "Type of Discount", select the discount you want to create (e.g. a 15% discount).

The key is the "Order Amount" filter. Make sure that you set the discount code so that it can only be applied to orders whose total is higher than the average order amount you obtained from the View Sales by Date report.

Configure the Status, Expiration and other Parameters as you wish (see the ProductCart User Guide for details).

Make a few edits to the graphical interface of your store so that the new discount code is visible to customers. For example, look at how the 15% Off promotion is highlighted on this demo store >>

Mention the new discount code in newsletters, marketing material, etc.

You're done!
If this kind of promotion is done right, you should start seeing a measurable increase in the Average Order Amount on your store. Use this Forum to share your experiences with other ProductCart users.

Edited by earlyimp - 21-November-2005 at 9:30pm

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ProductCart Members Profile Send Private Message Find Members Posts Add to Buddy List Admin Group ProductCart Team Joined: 01-October-2003 Status: Offline Points: 135	Post Options Post Reply Quote ProductCart Report Post Thanks(0) Quote Reply Topic: Tips & Trick - Average Order Amount Posted: 21-November-2005 at 8:57pm
	This is the second of a series of Tips & Tricks that we regularly publish to this Fourm. Today we will look at some ideas on how to increase your sales by focusing on the average size of the orders you receive. As you well know, there are three ways to increase sales on your store: Increasing the number of orders Increasing the average size of the orders Reducing the amount of returns Let's focus on (2). The Average Order Amount is a key factor in growing sales on your store, and it's something that you can work on right away. The average order amount can be calculated as simply as TOTAL SALES / NUMBER OF ORDERS for a certain period of time. The View Sales by Date report in ProductCart provides that figure. A common way to increase sales on your store is to invite customers to spend an amount that exceeds that figure. You can do so by providing them with a visible incentive to place an order that goes over that amount. Take a look at how Gap.com does this. To set up this kind of promotion in ProductCart, take the following steps: Log into your Control Panel and navigate to "Specials/Discounts > Discounts By Code". Click on "Add New Discount" Enter a description for your discount (e.g. 15% Off orders over $100) and an easy to remember discount code (e.g 15off). Under "Type of Discount", select the discount you want to create (e.g. a 15% discount). The key is the "Order Amount" filter. Make sure that you set the discount code so that it can only be applied to orders whose total is higher than the average order amount you obtained from the View Sales by Date report. Configure the Status, Expiration and other Parameters as you wish (see the ProductCart User Guide for details). Make a few edits to the graphical interface of your store so that the new discount code is visible to customers. For example, look at how the 15% Off promotion is highlighted on this demo store >> Mention the new discount code in newsletters, marketing material, etc. You're done! If this kind of promotion is done right, you should start seeing a measurable increase in the Average Order Amount on your store. Use this Forum to share your experiences with other ProductCart users. Edited by earlyimp - 21-November-2005 at 9:30pm
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