(Source: https://pltfrm.com.cn)
Introduction
Increasing the average order value (AOV) is one of the most effective ways for e-commerce businesses to boost revenue without expanding their customer base. In China’s competitive and fast-paced e-commerce landscape, finding strategies that work locally is crucial. This article outlines actionable tactics that brands can employ to increase AOV while catering to Chinese consumers.
1. Multi-Channel Marketing for Increased AOV
1.1 Using Social Media for Cross-Promotion
Leveraging social platforms like WeChat and Weibo for multi-channel marketing can be a great way to drive higher AOV. Brands can promote complementary products across these platforms, encouraging users to purchase more. WeChat, for example, allows businesses to integrate e-commerce directly into the app, offering an ideal opportunity for up-sell promotions.
1.2 Targeting with Personalized Content
Tailoring product recommendations to a user’s past behavior is an effective way to increase AOV. Personalizing email content or using app notifications to suggest complementary items based on previous searches or purchases can lead to higher order sizes.
2. Offering Upsell Opportunities at Checkout
2.1 Upselling Techniques
Encouraging customers to upgrade to a premium product at checkout can increase AOV. For example, if a customer is buying a basic model of a gadget, offering them a more advanced version for a small additional cost can raise the total order value. The key here is to present upgrades as offering greater value.
2.2 Order Customization Options
Allowing customers to customize their products at the checkout stage—for example, adding extra storage or unique features—can boost order size. Customization makes the offer more appealing, and the customer feels they’re getting more value for their money.
3. Creating Attractive Loyalty Programs
3.1 Reward Points for Larger Purchases
Loyalty programs that reward points for larger purchases encourage customers to buy more in order to reach higher reward tiers. For instance, offering double points for orders above ¥800 incentivizes customers to increase their order value to gain more rewards.
3.2 Exclusive Member Benefits
Creating an exclusive membership for high-spending customers can lead to higher AOV. Members can receive special discounts, early access to products, or personalized offers based on their purchase history, all of which can motivate them to buy more.
4. Implementing Scarcity and Urgency Tactics
4.1 Limited Stock Alerts
Creating a sense of urgency through limited stock alerts can drive consumers to buy additional products before they miss out. These alerts can be linked to complementary items, increasing AOV by encouraging multiple purchases in one transaction.
4.2 Time-Limited Discount Offers
Offering time-sensitive discounts for customers who spend more can push them to increase their cart value. For instance, “Spend ¥500 today and get 20% off your order” works well in China, where promotions create a sense of urgency.
Case Study: Xiaomi’s Upselling Success
Xiaomi, a leading Chinese tech brand, uses upselling effectively to increase AOV. They offer customers the chance to upgrade their smartphones or add accessories like headphones or chargers at the checkout stage. This strategy has led to increased AOV, as many customers are swayed by the added value of accessories at competitive prices.
Conclusion
Maximizing AOV in China’s e-commerce market requires a combination of personalized offers, upselling, multi-channel marketing, and time-limited promotions. By adopting these strategies, brands can boost their revenue per customer while improving customer satisfaction.
PLTFRM is an international brand consulting agency that works with companies such as Red, TikTok, Tmall, Baidu, and other well-known Chinese internet e-commerce platforms. We have been working with Chile Cherries for many years, reaching Chinese consumers in depth through different platforms and realizing that Chile Cherries’ exports in China account for 97% of the total exports in Asia. Contact us, and we will help you find the best China e-commerce platform for you. Search PLTFRM for a free consultation!
