When you think of increasing revenue first thing that marketers do is find more and more customers, but apart from that, there are other ways too and one such is optimizing Average Revenue Per User. In this article, we will learn different ways to increase average revenue per user in eCommerce.
What is the Average Revenue Per User?
Average Revenue Per User in eCommerce is the most vital metric representing your ability to retain and continually deliver value to customers more than any other.
By definition, it is the value obtained by dividing the total income by the number of people who actively used your site over a specific time period is known as ARPU or Average Revenue Per User. It takes around a month on average. An increasingly popular way to assess profit is ARPU. The metric is particularly beneficial to analysts and the management of businesses. The greater the ARPU, the more value that company provides to clients, and the greater profit they make.
Proven Ways to Increase Average Revenue Per User in eCommerce in 2022
1. Let Customers Buy More products or Increase Their Transaction Amount
Proven ways by marketers to increase average revenue per user in eCommerce is to indirectly tell customers to buy more products, basically increasing their average transaction. For example, if we talk food joint Dominos, they try to do this so buy giving complementary products with pizza, either combo offers or complementary drinks with the same. This is great for order amount enhancement. There are a few ways in which you can let customers buy more products which would in turn increase average transaction value;
- Opt for Cross-Selling
- Opt for Up-Selling
- Offer Free-Shipping over a certain amount of purchase
2. Provide Personal Customer Service
Customers today expect exceptional treatment in addition to competent customer service.
According to Media Post’s research, 70% of customers have quit shopping websites permanently as a result of bad customer care experience. As opposed to this, the study found that “78% of customers said that their most satisfying encounter occurred because of capable and professional customer service agents.”
Customers are more likely to remember your company if you can recall their names. According to research on brain activity, hearing one’s name is the sweetest and most emotional sound a person can hear. This is the awareness of being noticed. Customers are typically enthusiastic about hearing their own names, which increases their interest in and commitment to your website.
What’s even more amazing is that they might be willing to buy what you’re selling. Although providing them with a personalised service can be challenging on a large scale, if you genuinely care about your consumers, you should make the effort. For example Magento Customer Service
3. Offer Discounts to Your Shoppers
There is nothing that offers, discounts or deals can resolve. So, another proven way to improve ARPU is by offering deals and discounts to customers. Now, this can be done in multiple ways;
- You can offer discounts to your ELITE or frequent customers
- Start Sale day for VIP customers one day prior, like Amazon or myntra does.
- Quick Customer Service Experience
- Remember your customer’s date of birth and offer special coupons.
- Start loyalty programs
- Educate your customers
- Report or reshare your customer on your website or social media.
- Add a blog with customer reviews
4. Give Customers Multiple Options to Shop
With data maintained you can offer customers-related searches. If customers see related products or services they tend to buy them too. Businesses tend to put related products under two categories namely;
- Frequently Bought Together
- Those who bought this also bought
For example: If your customer bought athleisure pants, you can show them gym t-shirts or shakers along. High chances are they now know they may have missed it or may be they made up minds to buy one.
5. Offer High Priced Payment Plan on Your Website
By increasing your average order value you are improving your average revenue also and it is among the most sustainable way to grow your business.
There is this saying by Casey Hill;
“The most effective way to increase AOV is to present the purchase options in a way that highlights your higher dollar value options.”
He states that whether or not you offer three-tier plans, businesses always tend to sell their high-priced plans.
Visual aesthetics of websites matter a lot when you want consumers to buy higher or mid-tier payment plans. This definitely increases average revenue per user.
Conclusion
Hope you find this article helpful and helps in increasing your revenues and improving the average revenue per user. But you should remember acquiring new leads is important but when it comes to growing your startup then retaining existing customers by looking at ways to increase loyalty and ARPU can be highly effective as a growth tool. Happy Reading, do visit this website for more such useful articles.