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3 Ways for Wineries to Increase Average Order Value

Brandon Harvie
May 18, 2022   |   Brandon Harvie Recommended for:   Marketing, Ecommerce
WineDirect DTC Online Shopping WineDirect DTC Online Shopping

We know growing your DTC sales is essential. You may be working to increase the number of sales you get, however, it would help if you also focused on increasing your average order value (AOV). In this post, we're sharing some simple ways for your winery to increase average order value. WineDirect’s industry-leading features allow you to optimize your winery for DTC sales and grow your average order value with ease.

What is Average Order Value (AOV)?

AOV is a key metric that all wineries should consider using. It measures the average dollar amount for every order placed with your winery within a specific period.

How to Calculate Average Order Value

To calculate AOV, simply take total revenue and divide it by the total number of orders. Make sure both are over the same period, such as one month or one year.

WineDirect Academy Average Order Value


For example, let's say your January online DTC sales were $20,000 and you had a total of 250 orders. $20,000 divided by 250 = $80, so January’s monthly AOV was $80. You now know that orders made through your website were $80 each for January on average.

Why is Average Order Value Important?

AOV is often overlooked, but it is a fundamental metric for ecommerce success and something you as a winery should pay close attention to. It provides a window into your customer's purchasing behavior, and you can use this data to improve the effectiveness of your marketing efforts and pricing strategy.

Ways to Increase Average Order Value

Provide Product Bundles

An excellent way to encourage customers to purchase more items is to create product bundles, which is when you group multiple products into one product. Grouping products that go well together or commonly sell together as bundles will encourage customers that were only looking to purchase one bottle, to purchase the complete set, increasing your average order value. Another way to increase average order value is to use Carrots, which is a tool that allows you to create messaging to entice customers to purchase more.

Learn more about Product Bundles and how to create them for free in the WineDirect Academy.

Start a Loyalty Program

Loyalty programs are a powerful way to build up your brand and help forge relationships with your customers, leading to increasing customer lifetime value. A study by Smile.io found that loyalty programs increase average order value by nearly 14%. Customers appreciate a personalized experience where they can earn rewards such as points, freebies, and more. You can build that group of highly engaged customers who love your brand and continue to come back.

Learn more about loyalty points in your WineDirect store with the free WineDirect Academy Mastery Course.

Optimize Shipping Strategies

Shipping cost is one of the top reasons that lead to shopping cart abandonment and offering discounted or flat rate shipping can incentivize customers to continue shopping and reach that threshold. For example, you could offer flat $5 shipping for all orders of at least 6 bottles. Offering free/discounted shipping at a certain point is a fantastic way to get customers to increase their average order value. It is crucial to show this threshold throughout your website so customers can shop with it in mind. We recommend using Carrots throughout your modal cart to entice customers to achieve the minimum spend to quality for a shipping discount.

Learn more about Shipping Strategies and how to set them up for free in the WineDirect Academy.

Conclusion

As you can see, there are numerous ways wineries can test and increase their average order value. We recommend trying one method at a time to find out what works best for your winery - and then sticking to it for some time. For more helpful tips on optimizing your WineDirect store, check out the WineDirect Academy.

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