Once merchants have set up their online store and it's live, they begin their journey to make it successful and profitable. This result is achieved by developing various pillars and considering numerous factors.
As developers of online stores on the Magento platform, we can assist merchants in leveraging the potential of the platform and the store they've already built (through built-in functionalities or extensions by Stenik or other developers) to pave the way to success. Therefore, in a series of 3 articles, we will provide recommendations for functionalities and best practices in the following areas:
- How to increase the Average Order Value (AOV)
- How to improve the conversion rate (percentage of visitors who make a purchase)
- How to boost purchase frequency
As a merchant or marketing specialist, if you are not fully satisfied with the sales of the online store you are managing or wish to improve its statistics, we recommend implementing these basic techniques. Only then should you draw conclusions about the online store and its potential or resort to more complex techniques and developments.
So, let’s get started!
In this first article, we will explore techniques and functionalities that can increase the average order value in your online store.
Promotional Banners Between Products
When a user is browsing through the product listings in the online store, scrolling through page after page of dozens of products, there is a way to catch their attention to a specific product you want to promote. And no, these are not the labels on product images (labels like “new,” “promo,” “just now,” and “hit,” etc.). While these are certainly useful and every merchant should use them, they are often applied to a large number of products and may not always stand out as much.
An effective method is to replace a product in the listing with a banner. You can even replace the positions of two products with a single banner. This will enhance the effect and will not go unnoticed by the user. This is also a good tactic to inform customers about special offers and promotions - be it for a specific product in the same category or even an entirely different category or a promotions page.
* The included image is an example from a project implemented for our client Douglas Bulgaria.
Related Products on the Product Detail Page (Related & Upsell Products)
Don’t sell to online consumers; help them buy :)
On the product detail pages, show related items to encourage users to purchase more goods than they initially planned. Offer products that complement the main item or are relevant to it. Example: when a customer is viewing a sink, offer a faucet as a related product.
Use up-selling - offer a more expensive or premium version of the product. Example: suggest a more expensive or more functional sink (whether from the same brand or another) to increase the order value. Include less popular or new items that might have gone unnoticed.
* The included image is an example from a project implemented for our client - Mar Mag.
Examples of different formulations:
- “You may also like”
- “Similar products” or “Related products”
- “Other customers also bought…”
- “More from this category”
- “More from this brand”
In Magento, we have two ready-made functionalities that can serve this purpose - Related products and Upsell products. As administrators, you can manually select these products or frequently automate this process by writing program rules that display the appropriate products. For even greater emphasis, related products can be displayed in a pop-up on the listing or product detail page after the user has added the product to their cart.
Related products are a mandatory element for recommending items to users when they encounter a product page for an out-of-stock item that will no longer be restocked. Instead of hiding the product and showing an error - 404 page or redirecting, you can display the out-of-stock product with related alternatives above it. This way, you won’t lose the customer. Amazon does it too.
Volume Discount: Buy 2, Get 5% Off. Buy 3, Get 10% Off.
An excellent feature that comes out of the box with your Magento store is a volume discount (Tier Price). Extremely useful and often overlooked by merchants. It allows online stores to offer their customers a price reduction when purchasing larger quantities of a product. This encourages customers to buy more.
Example: you sell a product for 100 leva. You can set up different pricing levels based on the purchased quantity:
- When buying 2 - 5% discount.
- When buying 3 - 10% discount.
- When buying 10 or more products - 15% discount.
* The included image is an example from a project implemented for our client O Plus.
Magento also allows you to configure product pricing for different customer groups. This means you can set up different discounts for new customers, loyal customers, wholesalers, etc.
Promotional Packages and Bundles (Product Bundles)
A customer is viewing product A, but at the same time, if they buy A+B, they get a 5% discount, and if they buy A+B+C, they get a 10% discount. What better way to encourage your customers to buy more? Everyone would want to complement their pants with a complete outfit. Or to purchase a pencil case and a water bottle from the same series at a discount along with a school backpack.
* The included image is an example from a project implemented for our client Uwear.
Promotional packages and bundles are among the effective techniques for increasing the average order value. Through them, we can encourage customers to purchase additional items along with the main product to get a better package deal. These are known as bundle packs or promotional packages. When a customer selects a specific item, the system suggests several other products to purchase along with the main chosen item. Promotional packages can be presented both on the product detail page and on a separate promotional bundles page, which we can include in the e-store’s navigation. If a customer hasn’t noticed the promotional packages while shopping, we can show them the additional products before they complete their order in the cart. This way, the customer may spontaneously add additional items to their cart. For more information on Bundle products, visit this article on our blog.
Cross-Selling Products in the Cart
When a customer is at the checkout in a supermarket and places their products on the conveyor belt, they often pick up items near the checkout - gums, sweets, or other small goods that they didn't plan to buy. The cashier suggests other small or promotional products, and the customer often buys those as well.
The same cross-selling strategy, which is an out-of-the-box solution, can be effectively applied in the online store. And even more targeted and precise. Example: if a customer adds a smartphone to their cart, you can suggest additional accessories like a protective case, screen protector, headphones, or a charger on the cart page. Or, if a customer adds pillows to their cart, you can suggest a duvet, pillowcase, sheet, etc. in the cart. Or simply place a few discounted products that you want to clear from your stock or want to sell more of. Offer additional products through a pop-up window that catches the customer's attention.
* The included image is an example from a project implemented for our client Dilios.
The option to automatically display related products on the product detail page, in the category, or in the cart can be added through an additional module. If complex conditions are required for displaying these products, a module for automation can be used to manage the blocks based on defined rules in the admin panel, similar to promotion rules.
Gifts in the Shopping Cart
Imagine the following scenario: the customer is back at the supermarket, and young promoters offer them to taste a new product. Additionally, they present a special offer—when buying 2 pieces of the new product, the customer will receive another product from the same brand for free at the checkout or an attractive brand merchandise item. Can you guess how this approach can be applied in an online store?
On the cart page, you can offer a special promotion: when purchasing an additional quantity of the product, the customer receives a free gift. The option can vary, offering, for example, a gift with the purchase of an item from the same category, brand, or product group. Inform customers with a pop-up and in the cart.
* For the purposes of this article, the included image is an example from a project realized for our client Douglas Bulgaria.
Gifts can be provided under specific conditions, making the offer more attractive and motivating. Gift-giving options include:
- A gift upon reaching a certain order value. Example: for orders over X BGN, customers receive a free product or sample.
* For the purposes of this article, the included image is an example from a project realized for our client Mattro.
- A gift with the purchase of a specific product: When customers purchase a particular product, they receive an additional gift. Example: buy a mattress and get a gift of an orthopedic pillow or fitted sheet.
- A gift for first purchase or registration: Customers who make their first purchase or register an account on the site receive a gift.
- A gift with every order: Provide a small gift with every order to enhance the customer experience.
- A gift when adding 2 or 3 pieces of the product.
- No gifts to give away?
Talk to your suppliers to provide you with brand merchandise and run different campaigns. Consumers will always buy a product just to get a piece of merchandise, which they often won't even use.
Communicate the opportunity to receive gifts on the product detail page to inform customers in advance and encourage them to complete their purchase. Use clear and attractive messages to emphasize the value of the offer and capture customers' attention. In Magento, you have a built-in feature that allows you to display banners on the detailed product pages directly from the admin panel, where you can even show a picture of the gift itself. Take advantage of it!
Product Packaging and Greeting Cards
Probably each of us has thought: "Wow, how much money I spent on gift wrapping at the mall stand!" Why not turn this opportunity into added value for your online store? Integrate the gift-wrapping option and add the money already prepared by consumers to your online store's cart. This way, you provide added value to consumers while also benefiting yourself.
Offer different wrapping options.
- Standard wrapping at a low cost: Every purchase can be wrapped for free for the customer. Include an "Add free gift wrap" option during checkout. This option can be presented as an additional option in the form of a checkbox or dropdown menu, where customers can easily choose whether they want wrapping for their products.
- Premium gift wrapping with payment: Offer customers a choice of luxurious wrapping options, such as "Wrap in a luxury gift box." You can display different designs and sizes of boxes, accompanied by information about what the boxes are suitable for, their sizes, and prices.
* For the purposes of this article, the included image is an example from a project realized for our client Casavino.
And more. You can also earn extra by offering cards. Add an option "add a card," which customers can add to the wrapped product.
- Offer greeting cards with messages: "Happy Birthday," "Thank You," or "Special for You." This is a small but significant gesture that customers will appreciate.
- Personalized cards that customers can purchase: Give customers the opportunity to enter a personalized message in a text field, which will be written on the selected card. This makes it easier for customers who want to send gifts directly to the recipients, saving them time and effort.
You can also activate a pop-up window that appears when the user selects the gift-wrapping option on the cart page.
In this window, the user will see all the products in the cart and will be able to choose which of them to be wrapped. The advanced solution offers configuration options that allow controlling how many products can be wrapped for free, with the option to choose the type of wrapping and add a card for each one individually. Offer free wrapping or a card for a certain number of products or under certain conditions.
All these described functionalities come directly with a ready extension in Magento.
Pop-up Windows with Different Messages
Pop-up windows should not only be associated with subscribing to a newsletter. Don't think that just because you close them, users ignore them too. On the contrary, these messages capture users' attention.
In Magento, through an additional ready extension, you can create different Pop-up windows and set various rules on which pages to display them, after how much time of stay, and how often.
You can highlight a promotion or promo code only in a specific category when you see that the user is interested.
You can offer something extra in the cart. The possibilities are many, and the result is likely an added product in the cart.
Pop-up windows are an effective marketing tool that allows you to communicate important notifications about new products, promotions, or to collect user emails.
* For the purposes of this article, the included image is an example from a project realized for our client Douglas Bulgaria.
By integrating this functionality, you have the opportunity to create different pop-up messages that are displayed to the user in one or several windows. You have the opportunity to:
- Determine how often the pop-up message appears.
- Decide where it appears.
- Target it to a specific customer group.
- Analyze views, clicks, and CTR.
- Each pop-up window can have its own design.
- Create exit pop-ups to prevent cart abandonment, promote special offers for loyal customers, collect feedback, and notify of new stock in certain categories.
Free Shipping Threshold
An effective way to motivate users to increase their order value is through a message displayed in the cart during shopping in the online store, informing how much remains to reach the free shipping threshold. Example: "Add products for another X BGN to get free shipping," which would motivate customers to add additional items to their cart.
In Magento, we have developed functionality that automatically calculates the remaining amount to free shipping directly in the cart. This feature provides customers with accurate information about the amount they need to add to their order to avoid shipping costs. Merchants have the option to set a free shipping threshold tailored to their business needs and strategies. After reaching the set threshold, the free shipping rule is automatically activated, and the customer receives free shipping.
For maximum efficiency, it is important to communicate the free shipping threshold on key pages in the online store, including the homepage, product page, and in the cart. This ensures constant visibility of the offer and increases the likelihood that customers will complete their purchases by adding additional products to avoid shipping costs.
Remaining Amount to Discount
Similar to the free shipping threshold functionality, a feature for the remaining amount to receive a discount can also be implemented. Example: "Add products for another 50 BGN and get a 7% discount."
Installment Purchases
Adding installment payment options to an online store makes more expensive products more accessible to consumers.
For example, if a customer wants to buy a new watch but the price exceeds their monthly budget, they can choose to spread the cost into smaller monthly payments instead of paying the full amount at once. On the product page, the customer sees a "Buy in Installments" or "Buy on Credit" button, accompanied by icons of the credit institutions with which the merchant works (e.g., BNP Paribas, TBI Bank, DSK Bank, Unicredit Bulbank, and others).
Clicking this button opens an informative table with separate tabs for each credit institution. In each tab, the customer can view the monthly installments and terms for installment payments, presented in a tabular format for each bank individually. This makes it easier to compare different offers and helps the customer make an informed choice.
* For the purposes of this article, the included image is an example from a project implemented for our client - Timeland.
At Stenik, we have developed a Magento module that allows integration with various credit institutions. By integrating your store with the relevant credit institution, a credit (leasing) calculator can also be added, enabling the customer to enter the initial down payment. The calculator automatically recalculates the loan amount based on the entered information and generates various installment plans. This functionality significantly simplifies the process for customers in choosing the most suitable financing option.
In Magento, you can set the position of the payment method - installment payment in the checkout, relative to the other payment methods offered by the merchant.
The entire process is fully automated and intuitive, making it easier to apply for leasing and improving the customer experience. For more information about the integration, please refer to the article on our blog.
What’s the Next Step?
In Magento, you have a wide range of functionalities that can be integrated to increase average order value and enhance user experience. It is important to know and understand them well to apply them effectively—this way, you will leverage the full potential of your online store. Our project managers are ready to consult and assist you!
