It’s called Average Cart Value (ACV).
Sometimes, Average Transaction Amount.
Regardless, it’s the average amount of money a new customer spends with you on the first transaction.
It’s one of the most valuable and useable metrics in all of direct response marketing.
It tells you how much you can afford to spend to generate a single new customer without going negative (i.e. losing money when making a new sale).
Increasing the ACV can significantly improve the economics of your entire business.
* It can allow you to pay higher traffic costs.
* It can allow you to tap into traffic channels your competitors can’t.
* It can allow you to get to profits quicker.
* And more.
That’s why savvy marketers regularly work on increasing their Average Cart Value. So should you.
Here are 4 ways to do it:
(1) Order Form Option Offer
Selling a single product?
Offer a bundle of two of them on the order form at a discount.
Selling a monthly membership?
Offer an annual or quarterly option.
Selling a dollar trial?
Offer an option to pre-pay right now at cheaper price than after the trial. Or, with an extra bonus only offered today.
Whatever you’re selling, give folks the opportunity to get more of it, a bigger version, or something extra.
The beauty is… this higher priced option doesn’t even have to be mentioned anywhere on the sales page. Just be having it on the order form some folks will take advantage of it.
And in the process, you’ll increase your Average Cart Value (ACV).
(2) Order Form Bump Offer
This is low-hanging fruit.
Include an extra, congruent offer on your order form which prospects can add to their order by checking a box.
The key with making this work well for you — 30%+ conversion rate — is the Bump Offer needs to be congruent with the main offer, extremely sexy and compelling, and priced as a percentage of the main offer.
It should be viewed as a perfect companion to what they’ve already decided to buy… high value… and priced low enough to be an impulse purchase.
When done correctly, a good Order Form Bump Offer can significantly increase Average Cart Value (ACV).
(3) Add-On Offer Sequence
Think of this as your typical series of upsells, with a twist.
Instead of having your first “upsell” be something priced significantly higher than the main offer on the order form, start with an Add-On Offer which is priced between 60-80%.
Meaning: If the product your customer just bought was priced at $50, your first Add-On Offer should be priced between $30-$40.
Why does this work so well?
Because this type of offer falls within typical consumer experience.
Consumers are used to buying products… then being offered other things to go along with their purchase… which are a fraction of the price of what they just paid.
Done correctly, another ACV boost.
(4) Second-Chance Offer Sequence
More low hanging fruit.
This begins 48 hours after their purchase.
Here, you’re giving your new customers a second opportunity to purchase any of the offers from the Add-On Offer sequence they may have skipped.
Done most effectively, the whole process is also one click.
Meaning: You send customers back to a webpage which explains the offer, and gives them a chance to added it to their purchase with one click — no filling out an order form again.
There are other methods for increasing Average Cart Value (ACV). But these are the basic ones you should start with.
Used individually they can increase your ACV nicely. Used together… they can completely change the economics of your business.
Enjoy,
Todd 🙂
Note: If you find value in learning these sort of methods, you’ll love Acquire & Monetize™. It’s where I share everything I know about acquiring mass customers and deep customer monetization.