Average Order Value: Predicting and Solving Your Students’ Problems
Can you read minds? Oh, no, you can’t? It would be a lot easier if you could, but, lucky for you, you have the concept of average order value (AOV), which is the next best thing to help increase your real estate school’s profitability and ensure students’ loyalty to your school.
Now, the average order value is a lot less about magic and more about critical thinking and solving your student’s problem before it even arises. It can be quite confusing at first, but after reading this article and watching the corresponding recorded webinar, you will be a pro.
We live in a digital world; we can do almost everything online from buying groceries to getting a degree. Technology is at the epicenter of it all—especially shopping.
What Is Average Order Value?
Average order value tracks the average amount spent every time a customer orders on a website. To figure out your average order value, you want to divide your total revenue by the total number of orders you get. AOV is a key performance indicator (KPI) for online businesses and understanding customers’ purchasing behavior.
How to Increase Average Order Value
When you go to an online store and click on an item, scroll down, add it to your cart, and then the site recommends a couple of other items to you, this is what we call suggestive selling.
For example, your customer finds a book and puts it into their cart; however, that particular book has a prequel and three other books in the series. This is valuable information to the customer; the customer already knows they want this one book, but they don’t know they want the whole series.
You need to recommend the other books to them as they add the first book to their cart. The customer is online right now and wants to buy the book from you. This is your chance to increase your profits and have them buy the whole series in one transaction.
Suppose corresponding books are offered somewhere else, or you are unable to offer related products through the purchase experience. In that case, it becomes crucial to market and package similar items to ensure students understand what is available and that they can buy them all from your school.
Bundling your courses or textbooks into a complete solution ensures that your students will feel confident knowing they purchased the correct courses and products for their educational needs. And it’s a bonus that you only have to sell to your students once.
Now that you understand your customer is on the site and ready to buy, take this knowledge, and use it to your advantage. Not only will the customer be more inclined to purchase the whole series, but you have guaranteed a profit from them buying the series rather than just that one book.
Take advantage of all that Dearborn has to offer. Become a Partner >