HomeCustomer Relationship ManagementWhat Are SaaS Ways to Increase Average Order Value?

What Are SaaS Ways to Increase Average Order Value?

In the SaaS industry, where every bit of data matters and every decision has far-reaching consequences, you must wrap your head around Average Order Value (AOV). It’s not just about those boring numbers, no, no. It’s about sifting through the hidden insights and decoding the secrets within. Trust me, mastering the nuances of AOV can be a total game-changer, my friend. So buckle up as we dive into this wild journey to explore the depths of AOV, uncover its mind-blowing significance, and unveil some serious SaaS strategies that’ll take your business to new heights.

Understanding Average Order Value(AOV)

quality, service, value, price written with chalk on blackboard

Decoding AOV: The Foundation

AOV, simply put, is the average dollar amount of dough your customers drop on your orders. To calculate it, you divide the total revenue by the number of orders. Understanding this fundamental metric is like a ninja skill in the SaaS arena.

The Equation Unveiled: AOV Formula and Calculation

AOV = Total Revenue / Number of Orders

This formula guides businesses toward increasing the average value of their AOV.

Significance of AOV: Beyond the Surface

key performance indicator

Beneath the surface lies a freakin’ treasure trove of insights. AOV isn’t just some boring metric; it’s a key performance indicator (KPI) that tells a freakin’ story. It reveals how much your customers are willing to splash in a single transaction, giving you some serious intel into their buying behavior. It’s like being a secret agent but for your business!

The Importance of SaaS Average Order Value per Customer

aov with rising bar graph

AOV as a Performance Indicator

AOV is more than just another boring number in your financial reports. It’s like a compass that shows how awesome your business is. As a CEO or manager, understanding AOV helps you gauge the effectiveness of your sales and marketing strategies.

AOV’s Impact on Revenue and Profitability

Revenue is your business’s lifeblood in Saas. And a higher AOV? It’s like finding a hidden treasure stash within your existing customer base without begging for new customers.

AOV’s Role in Customer Segmentation

To customize your offerings and sell them like a boss, you must know your customers’ preferences and buying habits. AOV can be your secret weapon to segment your customer base and serve them with personalized experiences and targeted marketing campaigns.

Challenges To Achieve Higher Average Order Value

figurine going over challenge

Inconsistent AOV Metrics

In the SaaS industry, accurate data is the name of the game. But if your Average Order Value (AOV) metrics are all over the place, it’s like being lost in a maze. Different sources and different tracking methods – it’s a recipe for confusion. So, let’s get our data ducks in a row, and these important metrics paint a clear picture of your AOV.

AOV Decline Over Time

A declining AOV is a red flag for any business. It could mean customers are going for cheaper stuff or not buying as often. My friend, it is time to rise like a phoenix and reverse this trend. Identify the root cause, rock those upselling and cross-selling strategies, and bring back the glory days of higher AOV.

Competitive Pressures like Free shipping threshold

Knowing your AOV is cool, but knowing how you stack up against competitors? That’s like playing in the big leagues. If your rivals have a higher AOV, they might offer more value or have some killer pricing strategy or free shipping threshold. It’s time to put on your detective hat, do some competitive analysis, and make those necessary adjustments.

Customer Resistance to Upselling

Boosting AOV involves some slick upselling tactics, but some customers resist. They think it’s aggressive or unnecessary. It’s time to break those barriers and win their hearts. Focus on providing genuine value, building trust, and showing them how upselling can improve their experience or solve their problems.

Awesome Hacks to Boost Your Average Order Value

How to boost average order value

Cross-Selling and Upselling Tricks

Cross-selling and upselling are like secret weapons to amp up your sales game. Cross-selling means offering existing customers additional stuff that goes hand in hand with what they’re buying. Upselling, on the other hand, is all about convincing them to upgrade to a fancier, pricier version. These tricks not only increase your average order value, but they also make customers super satisfied and loyal. Just remember, always add value and understand what they really want. Here are some cool ways to make it happen:

Product Bundling: Bundle related products together and watch the magic happen. Customers love it when they can get everything they need in one go!

Product Recommendations: Get all techy with data and AI and suggest products from online stores that your customers will love based on their browsing and buying history. It’s like having a personal shopping assistant!

Loyalty Programs: Treat your high average order value customers like VIPs! Give them exclusive benefits, free gifts, and discounts to keep them coming back for more under the loyalty program.

Pricing Hacks

affordable price stamp

Pricing is no joke, my friend. It’s a game of strategy, understanding the market, and knowing your competition. Get it right, and you’ll see sales skyrocket, competitiveness goes through the roof, and profits hit new heights. But remember, it’s not just about slapping a price tag on something. Check out these cool pricing hacks:

Tiered Pricing: Give customers options, man! Offer different pricing tiers to cater to segment customers and their needs. Let them choose what suits them best and watch that average order value climb.

Volume Discounts: Want customers to buy in bulk? Give them a sweet deal with volume discounts. More sales, more inventory moved, more money made – it’s a win-win.

Add-On Services: If you’re in the SaaS business, this one’s for you. Boost that average order value by offering extra services or features that complement your core product. Customers dig comprehensive packages.

Rocking Customer Experience

In this crazy competitive world, giving customers an amazing experience is the name of the game. It’s not just about customer service – it’s about every single interaction they have with your brand. Trust me, improving that experience will lead to loyal, repeat customers, a killer brand rep, and more cash in your pocket. Here’s how to make it happen:

Personalization: Make them feel special. Tailor the shopping experience to each customer. Use data and stuff to give personalized recommendations and offers. It’s like magic!

User-Generated Content: Let your customers do the talking. Encourage them to leave reviews, testimonials, or user-generated content. Positive vibes will boost their confidence and make them buy more.

Sales and Marketing Hacks

increase sales with arrow

Sales and marketing are like the fuel to your business engine. They bring in customers, make your revenue grow, and get your brand recognized. It’s all about creating the best content, nailing social media, and building relationships that last. Check out these killer tactics:

Targeted Email Campaigns: Time to get personal, my friend. Segment your email list based on customer behavior and preferences. Send targeted emails with personalized offers and incentives. They won’t be able to resist.

Retargeting Ads: Chase down those customers who showed interest but didn’t seal the deal. Use retargeting ads and tempt them back with fantastic incentives. They’ll come running!

Content Marketing for Education and Promotion: Educate your customers, man! Create informative blog posts, guides, and resources that show them the high-value customers out of high-value purchases. It’s all about showcasing what you’ve got.

Maximizing Average Order Value Using SaaS Tools

compass pointing to maximum

Alright, listen up! In this ever-changing world of e-commerce and SaaS solutions, we’re on a mission to get a higher Average Order Value (AOV) than ever before. AOV, the average dollar amount worth of orders placed by customers, is our compass to profitability and growth. CEOs and managers of SaaS enterprises, especially those in ERP (Enterprise Resource Planning), buckle up! We’re about to embark on a wild journey of SaaS tools that’ll take our average order value strategies to new heights. Get ready to explore the transformative power of Customer Relationship Management (CRM), Enterprise Resource Planning (ERP), and payment gateway integration. These bad boys will not only boost AOV but also strengthen customer relationships and propel SaaS businesses toward unrivaled success.

CRM (Customer Relationship Management)

customer relationship management (CRM)

Segmentation and Targeting: Know Your Squad

Time to get personal! Segment your customer base based on demographics, purchase history, and behavior of online businesses. Then, hit them with tailored messages and irresistible offers.

Personalized Communication: Bye-Bye One-Size-Fits-All

Say no to generic marketing! Personalized communication is the name of the game. Use your CRM system to create messages that speak directly to each customer’s needs and preferences.

Customer Engagement Automation: Let the Robots Do the Work

Automation is our secret weapon. Set up automated marketing campaigns triggered by customer actions like abandoned carts or product views. These automated touchpoints will guide customers toward those high-value purchases.

Loyalty Program Integration: VIP Treatment, Baby!

Integrate your loyalty program with your CRM system seamlessly. Identify and reward those high AOV customers, making them feel like part of an exclusive club under a loyalty program. Get ready for some serious repeat purchases!

Customer Feedback and Surveys: Ask and You Shall Receive

Forget the guesswork! Use your CRM to collect feedback through surveys and customer interactions. This treasure trove of information will shape your strategies, complementary products, and offerings to match exactly what your customers want.

ERP (Enterprise Resource Planning)

functions of erp in form of diagram

Inventory Management

In the wild world of SaaS, nailing inventory management is a total game-changer. ERP systems come to the rescue with real-time visibility into your stock levels, saving you from those dreaded out-of-stock moments for your hottest products.

Order Fulfillment Optimization

Lightning-fast order fulfillment is the name of the game. ERP systems swoop in to streamline your order processing workflows, slashing lead times and giving your customers a smooth-as-butter experience.

Demand Forecasting

ERP software taps into the power of data to predict your future product demand. Smart stocking and planning are the name of the game, maximizing your chances of higher average order value (AOV).

Supplier Relationship Management (SRM)

Tight-knit relationships with suppliers can totally give you the upper hand. Work your magic with suppliers to score better pricing on those high-margin products. Get those exclusive goodies that make customers go wild and splurge on their AOV.

Pricing Strategies

ERP systems are your secret weapon for dynamic pricing wizardry. Analyze the market, keep an eye on the competition, and stay on top of your inventory. Adjust those prices in real-time to optimize that AOV and keep the cash flowing.

Cross-Channel Integration

Keep the good vibes flowing between your ERP system and other sales channels. Make sure it’s all seamless, from online store orders to in-store pickups and returns. Give your customers that unified shopping experience they crave, and avoid any inventory mishaps.

Payment Gateway

making payment from one account to another

Incentivizing Preferred Payment Methods

It’s time to sweet-talk your customers into using their favorite payment methods. Offer some juicy discounts or cashback incentives to seal the deal. Let them know about the perks, like speedier checkouts and extra security.

Reducing Abandoned Carts

Say goodbye to those pesky abandoned carts. Optimize your payment gateway like a boss. One-click checkouts are where it’s at, making payments a breeze. And remember those nifty abandoned cart recovery emails to remind customers what they’re missing out on. Throw in some irresistible incentives, and watch those carts get back on track.

Mobile Wallet Integration

It’s time to join the cool kids with mobile wallets. Get on board with Apple Pay, Google Pay, or PayPal, and make it rain convenience and security. Let your customers know they’re in for a treat when they use these mobile wallet gems. And hey, exclusive discounts for mobile wallet users? Cha-ching!

Payment Plan Options

Flexibility is the name of the game. Give your customers the power to split their purchases into bite-sized payments with installment options. Lay out all the deets during checkout so they know what they’re getting into. Show them how affordable and flexible it can be, and watch that AOV soar.



As you venture into the realm of AOV enhancement, keep in mind that it’s not a one-and-done deal but an exciting ongoing journey. Stay sharp, my friend, because the e-commerce and AOV strategies landscape is ever-changing. It’s not just about crunching numbers; it’s about unleashing the hidden potential within your customer base. Get ready to rock the boat with cross-selling, killer pricing strategies, personalized communication, and the magic of SaaS tools like CRM, ERP, and payment gateways.

Oh, and by the way, the path to increasing average order value and growth isn’t a one-size-fits-all thing. Nope, it’s a wild ride that demands continuous refinement, a deep understanding of customer behavior, and the strategic mastery of SaaS tools to stay ahead of the game.


a girl thinking on questions
  1. What is Average Order Value (AOV), and why should SaaS businesses care?

Average Order Value (AOV) is the average amount of moolah customers spend when placing an order. It’s a big deal for SaaS businesses because it tells us how customers behave and spend, which affects our money and profits.

  1. How can SaaS businesses boost their Average Order Value (AOV)?

SaaS businesses can make bank with average order value by cross-selling like a boss, optimizing prices, personalizing communication (aka gettin’ cozy), and using fancy SaaS tools like CRM, ERP, and payment gateways.

  1. What’s the deal with CRM in maximizing Average Order Value (AOV)?

CRM (Customer Relationship Management) helps us slice and dice customers like a ninja so we can talk to them like they’re our BFFs. It also hooks us up with a loyalty program, collects customer feedback, and all that jazz, which pumps up our AOV.

  1. How can ERP systems make Average Order Value (AOV) even cooler?

ERP (Enterprise Resource Planning) systems are like the superheroes of average order and customer lifetime value. They manage inventory like a boss, streamline average order fulfillment, predict demand like psychics, and support killer pricing strategies. Plus, they make sure the shopping experience is smooth across all channels.

  1. What’s the secret to reducing abandoned carts and increasing AOV with payment gateways?

To kick abandoned carts to the curb and boost AOV revenue growth, payment gateways have some tricks up their sleeves. They offer sweet deals for preferred payment methods, make checkout a breeze with one-click options, send rescue emails for abandoned carts, hook up mobile wallets, and even give customers some flexible payment plans.

Mark Farrar
Mark Farrar
Mark Farrar is the Senior Manager of Technicali's Content Strategy Team with 12 years of experience. Previously, he helped entrepreneurs build and grow software. And, now puts great effort into understanding work cultures and saas' trends to drop ninja value to his readers. He does that all with his turtle "Drago" besides all the time and likes watching ninja movies with him.


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