In order to build the highest-performing checkout it’s critical to optimize all three metrics of the Checkout Power Trio (conversion, AOV, and LTV). All three are vital, but today, we’re honing in on AOV; or the average amount your customers spend per transaction. Building checkout flows that boost AOV helps you capture more revenue without needing to bring in more customers. This article will guide you through the basics of a checkout flow and detail strategies you can follow to boost AOV through tailored checkout experiences.
What is a Checkout Flow?
Think of a checkout flow as your online store’s checkout counter, but digitally redesigned to offer a customized shopping experience. These flows can be tailored to achieve the ideal balance between the Power Trio metrics, with the aim of maximizing profitability. For instance, a customer adding a pair of shoes to their cart could be presented with matching accessories or a two-pair bundle deal – all are strategies designed to boost AOV.
Building Your Ideal Checkout Experience Step-by-Step
1- Set your criteria:
The first step involves setting the criteria that will trigger different checkout flows. Bold Checkout allows you to set your criteria based on the following:
- Customer’s device: mobile or desktop?
- Current channel: social media, email, or direct website visit?
- Previous buying behavior: first-time buyer or repeat customer?
- Unique brand-specific considerations: seasonal promotions, special offers etc.
2- Design your interface:
The visual layout of your checkout also influences AOV. Bold Checkout offers multiple choices so that you can select the best-looking checkout for your experience.
- One-page checkout: everything on a single page
- Three-page checkout: separates information gathering into steps
- One-click checkout: for returning customers
- Embedded checkout: inside a blog or social media page
- Fully customized design: checkout that is unique to your brand’s aesthetics
3- Shape your experience optimizers:
This stage involves specifying the front-end logic needed to deliver an ideal customer experience.
- Shipping options: free, fast, international, free shipping threshold, etc
- Features: loyalty programs, discounts, donation options, and other widgets
4- Configure your business optimizers:
Your back-end logic takes care of:
- Payment gateway: PayPal, Stripe, etc.
- Backup options: in case the primary gateway fails
- Carrier choices: FedEx, UPS, USPS, etc.
- Tax provider: based on your specific requirements
Strategies to Optimize AOV in Checkout Flows
1- Utilize upsells and cross-sells:
A classic strategy to increase AOV is to offer relevant upsells and cross-sells to your customers. For example, if someone is buying a laptop, suggesting a compatible mouse or keyboard can add value to the purchase and increase the total order size.
2- Offer volume discounts:
Utilize tiered pricing to encourage customers to buy more. If your products are often purchased in bulk or are consumable – like a beauty brand offering a discount for buying shampoo and conditioner together – this strategy can be incredibly effective.
3- Offer product bundles:
Product bundles are a great way to create value for your customers while also boosting AOV. For example, a kitchenware brand could offer a cooking set that includes pots, pans, and utensils at a lower combined price than if these items are purchased individually.
4- Free shipping thresholds:
Free shipping is a significant motivator for online shoppers. By setting free shipping thresholds just above your current AOV, you’re helping encourage your customers to increase their order size to unlock free shipping.
5- Loyalty Programs:
Points, cashback, and future discounts incentivize customers to spend more per order, significantly contributing to higher AOV.
Bring Your Tailored Checkout Flows to Life
Legacy commerce platforms can be rigid and limit customization. However, headless solutions like Bold Checkout offer more flexibility. To bring your checkout experience into the next generation, consider these key features:
1. Headless architecture:
An API-first approach that separates front-end and back-end functionalities and allows more flexibility in designing tailored experiences. Headless architecture is especially important when optimizing for AOV. LTV, and conversion in your checkout.
2. Ecosystem of partners:
Partnering with experienced providers in payments, shipping, and loyalty programs can give you an extra edge in crafting world-class checkout experiences.
Extensibility features allow you to tweak and change business logic according to evolving needs, thereby future-proofing your checkout flows.
Regardless of the strategies you choose, the key to enhancing AOV within your checkout is to create an experience that is tailored to your customer’s journey. By setting the right criteria, designing intuitive interfaces, and offering value-add options to your customers you can successfully optimize your checkout flows to yield higher AOV, contributing to your brand’s long-term profitability.
Click here to see tailored checkout in action!
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