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How to Improve "Order Value"
How to Improve "Order Value"

Actionable advice on how to iterate and improve your "Order Value" performance - one of the 7 strategies for growth.

Jessica Nash avatar
Written by Jessica Nash
Updated over a week ago

💡 Get an introduction to the Growth Engine and the full glossary of terms here.

What is the "Order Value" Growth Strategy?

Order Value is the first of seven growth strategies that make up the Growth Model.

Your "Order Value" Performance

The “Order Value” growth strategy is all about whether your team are upselling/cross-selling your products/services successfully and using all the tools available to increase your average order value. Take a look to see if your upsell/cross-sell performance is on the up (or not) in your Growth Engine.

How is "Order Value" performance calculated?

Your "Order Value" performance is calculated based on the average amount (monetary value) that a customer would spend on an average order. This is calculated by looking at your average revenue divided by total number of orders.

To represent your data as a comparable trend over time, we've used trailing twelve months (TTM) (a period consisting of data for twelve consecutive months), so that every period is comparable and contains an instance of every month. This is done to reduce effects of seasonality in the metrics. TTM analysis is the clearest way to see true trends in velocity accounting for seasonal variances in December, summer vs. winter, bank holidays etc. It clearly illustrates whether you're successfully accelerating the velocity - are you generating more Enquiries in a period, or is your velocity static or even falling?

Whether you need to reverse a falling trend, bump up a static trend, or accelerate an already upward trending velocity, keep reading for great strategies, advice, hints & tips.

Ways to improve your "Order Value" performance

For product businesses, the most obvious way to maximise customer lifetime value is by getting your customers to buy a wider range of products. By encouraging customers to buy more, the average order value will increase. Use this guide for ideas on improve your average order value per customer.

Configure links to highlight upsell opportunities

If you're selling hundreds or even thousands or products, you can't expect your Sales team to just remember which products sell well together, or which should be sold together.

By setting up upsell links in the CRM, it makes it easier for Sales to upsell a customer's order. Not only are they automatically prompted in the quoting process, making it quicker to action, suggestions and recommendations are relevant.

Action: Understand the different upsell options, then set them up using this guide.

Use the Magic Matrix to identify cross-sell opportunities

Without knowing what products your customers are already aware of, or what they've already bought, it can be difficult to understand opportunities for cross-sell. With the Magic Matrix, you can more strategically target customers based on their purchase history, building awareness of products that customers haven't bought yet.

Action: Get started with the Magic Matrix using this guide.

Broaden Contacts for Strong Customer Marketing

Ensure you have added any customers you communicate with into your CRM. Organise all customers, including as much information about them as possible to maximise Order Value. Knowing the basics such as Job Roles, Industry, and whether they are a Prospect/Customer etc. can strengthen bonds and make Marketing easier.

Action: Strengthen business contacts by identifying and recording key information.

Set up a "bought X but not Y" campaign to drive up AOV

Discover which customers purchased one specific product from you but not another using the "Customers who bought X but not Y" Report in the CRM. Knowing who these customers are and making them aware of a second item can encourage greater purchase volume per customer and increase average order values. You could create campaigns to market:

  • Similar products

  • Complimentary products

Action: Integrate your CRM to your preferred marketing tool, then use the pre-made "bought X but not Y" Report to identify campaign opportunities.

➡️ Next, take a look at our guide on how to improve "Order Frequency".

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