Boom that Average Order Value pt 2

Howdy readers!

Now, Instagram will allow all users in the USA to tag products on the platform, earlier this was only limited to a business or a creator account. 

Users will be able to simply tap on a product and get redirected to a trackable link or within the app itself to make a purchase. (team D2C, boot up😁) 

Instagram is also experimenting with an affiliate network that would allow select users to profit from the sales they make.

Let’s dive into the newsletter! In this newsletter you will find:

💥Boom that Average Order Value pt 2

📽️TikTok's retail engine is revving up, but are brands successful at driving sales?

🛍Product of the week 

If you’re new to ScaleUP then a hearty welcome to you, you’ve reached the right place along with 5k+ CEOs, CMO, and marketers.😉 Let’s get into it, shall we? Oh! Before you forget, if someone forwarded this newsletter to you then don't forget to subscribe to our newsletter so you never miss out!

BOOM THAT AVERAGE ORDER VALUE PT 2

Continuing today on how to boom that AOV, here are a few more interesting tips, but before we go ahead, if you liked the previous version do let us know your comments below :) 

🤌 Add Product suggestions to every product description page 

The best place you can upsell an existing customer is the product description page as the customers are already considering a purchase and while they read more about the product they’re most likely to check out more products related to the same. 

These recommendations can work miracles 🪄 if given with a personalized approach, as personalized product recommendations reduce cognitive decision-making, aiding in a quick and easy purchase decision. 

❤️ Offer personalized membership programs 

Personalized membership programs are a great means to upsell your existing customers. The success of this completely depends on the benefits the membership offers. 

PRO TIP: Add things beyond just free shipping to the membership, for example: 

🎂Birthday discounts 

😍 Free demo products

⏱Early access to festive sales etc.

📧 Email and SMS for the win 

Even though promotional emails and SMS are annoying, if used right they can act as powerful tools to cross-sell your customers.

Provide customers with personalized recommendations on post-purchase emails and consider adding product blocks in the following emails 

👉Thank you emails after every purchase

👉Welcome Emails with product education and info about your brand

👉Emails for status updates like Shipping and delivery notifications

💵 Use price anchoring

Yet again an amazing way to upsell is to deliberately present the customer with an inferior choice at a marginally higher price than the product you want to upsell. 

And boom SOLD! 

Here’s an interesting study that proves this fact. 

A few years back, The Economist ran an ad that looked like this:

Dan Ariely took the ad and showed it to 100 MIT students to see what they would choose.

An overwhelming majority of 84% chose what seemed the ‘best’ option – both print and web subscription at $125. 16% chose the web-only subscription. Nobody chose the print-only subscription at $125. 

Dan then took off the middle choice—the print-only one and ran the test again on 100 people. Surprisingly, the majority (68%) of people chose the cheaper option when the dummy choice was removed. The print and web subscription that saw 84% subscription in the presence of the dummy choice now got a significantly low 32% subscription rate.

An inferior choice makes a similar but superior choice look better even when other options are cheaper.

🛍 Provide Product bundles and BOGO offers but for Buy 2 get 1 free:

Providing Bundles is one of the best strategies that help in a significant chance of people being upsold easily, as the value perceived is of the bundle entirely and not each product separately. 

When brands provide Buy 2 get 1 offer, the customer sees value in getting three items for the price of two, encouraging them to make that extra purchase as they feel they are the ones who are winning here. ( is it? 😁)

Here’s an example of Apple bundling its products and giving customers more value than they would have received by purchasing them separately.

To conclude, here are a few best practices to keep in mind while upselling and cross-selling  your customers: 

💸 Experiment with various Offers for your audiences:

Audiences may react differently to different offers, to figure out what works the best for your brand TEST different types of offers, and in each test do the following : 

👉Constantly monitor and analyze user behavior to summarize their reaction to the offers and define the success rate of every offer.

👉Optimize user experiences on your eCommerce platforms according to the offers being run, let every active person on the platform be aware of the offer and identify at which stage of the funnel are users stuck, to plan the consecutive offers. 

⚠️ Do not overdo the offers: 

While experimenting is necessary, it’s important to not overdo it, as a frequent display of discounts and offers, decreases their value. This has an impact on the data then received and loses the entire point of running the promotion in the first place. 

🧐 Make the increase in the value to upsell count: 

While upselling it’s important to keep the price hike and the value provided through the upgrade directly proportional. For example, if the upsell is going to be from a basic model at $40 to the upgraded version at $400 for just a few additional features, it’s not going to make a significant impact on the customer and thus the upsell is most likely to fail. 

So keep all these tips in mind the next time you’re planning to increase your Average Order Value. 

If you liked this and think this can be helpful to people you know

SMOKIN TRENDING

TikTok's retail engine is revving up, but are brands successful at driving sales?

In 2021, Tiktok was the most downloaded app. It has a monthly active user base of over one billion people. It's also the world's third-largest social media platform.😮

TikTok has gone to the top of the app store faster than nearly any other platform, and its market domination is providing untapped opportunities for brands and retailers to create and improve client relationships. 

What distinguishes TikTok as a shopping platform?🤔

The company's sweet spot is figuring out how to monetize user-generated content. It has been seen over 4.1 billion times. 

🏬Shopping on TikTok 

TikTok has teamed with Shopify to make the platform shoppable, and in-app purchasing capabilities were enabled in select markets. 

Users can access a Shopping tab on a company's TikTok profile after discovering products while scrolling through videos.( tik tok making it easy🥳) Companies can sell directly on TikTok in a native shopping experience that includes product management, shipping, invoicing, purchasing, and returns. ⛴️

🎟️Dynamic Showcase Ads on TikTok

TikTok introduced Dynamic Showcase Ads, which make it easier for marketers and shops to sell their items on the network through tailored, targeted advertisements. 🏪

Companies can develop commercials from accessible templates that match the look of TikTok's distinctive video🎥 format, rather than beginning from scratch. Dynamic Showcase Ads autogenerate material that is interesting, relevant( Relevant content is all we want😌), and attractive to TikTok's audience by pulling data straight from product feeds. 

🛒API for the TikTok Creator Marketplace

Brands and retailers can now access audience demographics, growth trends, best-performing videos, and real-time campaign reporting via the new API. 

Now let's look at how we can drive sales on TikTok.

4️⃣On TikTok, there are four phases to increasing sales.

Companies are failing to maintain quality, consistent, and accurate product feeds that are required to power successful TikTok campaigns  Product-to-consumer (P2C) management, on the other hand, can assist brands and retailers manage their product data on TikTok. Companies can create a great TikTok experience for consumers by following the four stages below, leveraging a solid P2C strategy:

🗳️Select the appropriate products.

Users of TikTok do not want to be swamped with advertisements. (isn't it for everyone?🤔)  They expect to come across items in a natural, unobtrusive manner. Companies need to understand which goods create the most conversions on TikTok by having full visibility into campaign success across the whole commerce ecosystem.💻

💃Customize the content

From dancing videos and trip collections to cooking tutorials and history classes,( Which we all love watching👁️‍🗨️ ) TikTok content covers a wide spectrum of topics. For organizations to interact with relevant audiences, the personalization of product data is also critical. Although it is a common misperception that TikTok is mainly used by younger generations.

⚡Keep the standard high.

People's consumption of information about companies and items on TikTok must be consistent with their consumption of information on other social platforms or retail marketplaces. To guarantee that their presence on TikTok is consistent with all other customer touchpoints, businesses must standardize and automate how they update product data across the whole commerce ecosystem.

🔜Quickly adapt

The best-performing TikToks are all based on viral trends. Following these trends is critical for businesses since 83% of TikTok users indicate that seeing trending content has prompted them to buy something. Brands and retailers with an agile commerce strategy, such as P2C management, can instantly modify their commercials and product information to the most popular TikToks to acquire traction.

It's not difficult to recognize TikTok's importance and influence. To take advantage of the platform's selling and branding capabilities, the difficult part is matching tech stacks and obtaining control over commerce processes. Brands and merchants can revolutionize how they communicate with consumers using the leading video storytelling app by prioritizing high-quality product information and building up effective management processes.

PRODUCT OF THE WEEK IS…..

Loopple

Is building efficient dashboards a pain? Is building and managing your websites both on front and backends becoming a never-ending process? Do you want to build websites and dashboards in a few clicks, probably just drag and drop?

Well, Loopple is the perfect tool for you! 

With loopple, you can now create easy-to-use and edit dashboards and websites in minutes. Loopple uses its Bootstrap-based model, allowing users to build their bootstrap dashboards with its preset customizable templates in minutes with just a few drags and drops. 

It is also coupled with the content editing system that lets the user directly change content on the browser with the preferred additions. 

So what’re you waiting for? Go try Loopple now🤩

NEWS UP

👷‍♂️LinkedIn Adds Newsletters for Pages

🐦Twitter might start charging for TweetDeck through Twitter Blue

🍜Instacart’s new ‘Shoppable Recipes’ feature lets creators link shopping lists to their TikTok videos

👟Nike plans stand-alone Jordan stores

🖼️Favorites and Following, Two New Ways to Control Your Instagram Feed

QUICK BITES 

🥉3 Types of Pillar Pages and How They Help With Ranking 

💥The Ultimate List of the 54 Best SEO Tools

🖐️5 Hidden Gems in Shopify Analytics to Help You Scale Your Revenue Growth

We'd love to hear your thoughts and feedback on this newsletter🤗. If you have any suggestions, please reply to this email, and we will see you on Tuesday ✨

Have a great weekend

 and see you soon👋

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