You’ve tried it all but you can’t get your CPA down to where you need it.
You’ve likely figured out that you need to increase your average order value (AOV), and your customer lifetime value (LTV)
In this post, let’s look at increasing the AOV side of things.
Tactics To Improve Your Average Order Value
A quick Google search will bring up the usual recommendations:
- Add product recommendations
- Up-sell/cross-sell related products
- Try product bundles/ bulk sales/ quantity breaks
- Add a free shipping threshold
If those strategies didn’t move the needle for you, then you’re likely suffering from a low perceived value of whatever it is you sell.
If you haven’t already, try the Zipify One-Click Upsell app.
This tool has given us a huge boost in AOV for our clients.
The great thing about it: People buy, and are then pitched an irresistible upsell.
This helps people make a very quick decision to purchase an additional unit from you. Plus, people are more likely to take the upsell as their brain has just said “Yes” to the previous purchase, so taking the upsell just makes them feel they’re getting an even better deal.
Proven Strategies To Increase Your Perceived Product Value To Strengthen Your Offer
Great offers have a perceived value that is significantly higher than the perceived cost, e.g. if your customers evaluate your offer at $50 but you offer it for $30.
Add a sprinkling of urgency to this and people will buy like crazy.
If you’re struggling to get results, your may have a low perceived value. So remember:
Great offer = (higher than expected perceived value) ÷ (lower than expected perceived cost) x Urgency
A common mistake is thinking that creating great offers = giving massive discounts. That’s totally wrong, and may even hurt your brand long-term as your customers get used to buying on discount, and your promotions become less effective.
How To Create An Irresistible Offer: Strategies To Increase Perceived Value
1: Sell an idea/concept/outcome instead of a product. Tim Ferris didn’t sell a book about systems, optimization and delegation. He sold “The 4 hour workweek”. Steve Jobs didn’t just sell an mp3 player, he sold the idea of “thousand songs in your pocket.” See the difference? The perceived value of these products increased tremendously with the right marketing message.
2: Increase the value of your offer with something that has a high perceived value at very little cost, for example a free gift or bonuses with the purchase. We worked with a client that was selling a fermenting tool. By creating a video course that we gave as a bonus with each purchase, our perceived value increased and we scaled the tool without any discounts. The best thing was the course didn’t have any additional cost once produced.
The bigger benefits:
- We now had a much larger target audience as the product became relevant for people who weren’t familiar with fermenting
- We had lots of great video content for more ads and page posts
- We had a new course to sell as a standalone product
- People had a better experience with our product, leading to better word of mouth
- Wingman strategy: As opposed 3rd party platforms like Amazon or Etsy, you have full control over your landing page. A cool trick that increases the perceived value of your offer is to place higher-priced offers next to the offer you’re trying to sell. This makes your offer look like an even better deal because people use related offers to determine whether the offer they’re looking at is a great deal or not.
You may also want to read our blog post “7 crucial elements of a high-converting landing page” to learn how to present your offer in a way that people buy from you!