What is average Cart Value?
Average cart value (ACV) tracks the average dollar amount spent on your website by any given customer. ACV is calculated by dividing your total revenue by total number of sales within a set period of time. This key metric is usually measured monthly or quarterly. Once you know your ACV, you can use it to evaluate the effectiveness of your online marketing approach and pricing strategies. Given that each transaction within your marketplace has an associated cost, increasing your ACV directly increases revenue when customers are already buying from your store. Keep in mind that increasing your ACV does not require an increase in traffic to your website.
Strategies to increase ACV
There are myriad ways to increase your average cart value. A few of the more common strategies include setting a threshold for free shipping (higher minimum purchase), suggesting similar items that are of a higher price (upselling) and volume discounts (discount for purchasing a set number of units or bundling). You can also increase your ACV by suggesting items associated with the current items in your customer’s cart. The possibilities are endless. Be sure to methodically test your strategies via A/B testing in order to gain a clear picture of which are the most effective.