Before starting to see together what we have done (and how you could replicate it for your business) there is one thing we need to focus on...

The starting objective was to reduce the cost of acquisition (CAC) but after an analysis of the data it was clear that the real objective for the business at that stage was another...

That is, increasing the value of the average order (AOV) and the reason was quite clear, increasing the AOV would have made it possible to:

- bear higher acquisition costs

- improve cash flows by keeping it stable or even increasing margins

- have a very high response from the customer to the offers studied because you are going to work in a phase very close to the final conversion and therefore at the bottom of the funnel.

A fundamental aspect is to always be able to prioritize work cycles, focusing the effort on activities over which you can have greater control.

In this case, for example, the acquisition cost depends largely on the increase in the cost of advertising channels, while it is possible to obtain excellent room for improvement and greater control over the AOV regardless of the increase in the costs of the advertising channels.

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First you need to calculate the AOV and it's pretty simple:

‍AOV = Store Revenue/Order Number

What did we start with

We focused mainly on 2 strategies: Cross-selling and Quantity discount.

Let's see specifically what they are and how we have implemented them...

The Cross-selling is the sale of additional products that are directly related to the product that interests the potential customer.

It's important to know exactly what a customer who buys a specific product might need.

In the case of JNPR being a distillate used to make alcohol-free cocktails, we already had a list of what could be the products to offer to make the perfect aperitif in addition to the bottles already on the site (for example gin glasses, premium tonic water, ginger beer):

However, to have a greater degree of certainty about what the conversion rate would have been, we analyzed all the thousands of responses collected during the post-purchase survey to customers in which we asked what their favorite cocktail was.

(each of JNPR's 3 distillates can be used to make many different cocktails, knowing exactly which one was most interesting was essential to be able to offer the right products to make it as a cross-sell).

The second aspect we have focused on is the Quantity discount that is, a strategy that involves offering a discount if a larger quantity of the same product is purchased.

This offer is very effective for consumable products, as in the case of JNPR:

When a person adds a specific product to the cart, in addition to seeing the cross-sell with the products recommended for the preparation of different cocktails, they also see a specific discount on the purchase of a second bottle.‍

How we chose products and offers to introduce

Here we get to the heart of the matter...

Proposing the right products that can be really interesting for the potential customer who is about to finalize the purchase is of fundamental importance and has a direct impact on the final conversion rate and on the value of the order.

The strategic process took place in 3 phases:

‍1. Analysis of sales data

‍Within the catalog, we analyzed the products that were already purchased together, thus finding common patterns that we re-proposed during the cross-sell phase on the product page

‍2. Cross-sell architecture and quantity discount

We also selected some products that were not in the catalog, with high margins, for which we knew that there were interesting research volumes and that would allow the user to complete the experience of using the product in an optimal way.

An example are gin glasses and since JNPR's flagship product is a distillate for making non-alcoholic gin tonics, this would certainly have been the right choice.

In addition to this, we knew that a very important aspect for customers was to always have new cocktail ideas to make to amaze friends at aperitif time.

As soon as we realized that the purchase process for the product was very fast and did not require a long information phase, we decided to make the information material available to customers at a later stage to increase its retention, thus not focusing attention only on the first purchase but also and above all on the following steps, being a consumable product and therefore suitable for being repurchased with a high frequency.

This is why we decided to add among the products offered during the cross-sell phase also an eBook with 38 recipes that are easy to make at home according to your tastes:

3. Implementation of the stack (the set of working tools) for golive

We have inserted a popup that is activated after adding a product to the cart, offering various exclusive offers for the user depending on what they had selected.

There are different Apps that allow you to do an excellent job depending on the type of need and complexity required.

There are also several moments during the buying process when you can implement these strategies to increase the value of the average order, for example:

• immediately after adding to the cart - as in our case
• In the cart itself
• on the order thank you page

After an initial analysis to understand which products to introduce and in which phase of the customer journey, it is an excellent idea to do some tests to evaluate their effectiveness, analyzing the store's conversion rate and the various drop offs.

Results

In a few months we were able to reach x2 of the average order value, increasing at the same time the margin.

But the work didn't end there...

Analyzing the customer target, we noticed that a new, very interesting segment is beginning to make room, namely expectant mothers who cannot consume alcohol for 9 months but would appreciate being able to enjoy an aperitif with friends.

This is why we have introduced a new eBook with specific recipes for mums-to-be created in collaboration with a nutritionist:

This has also made it possible to work on a very specific segment, increasing not only volumes but also the average order value.