Now that you’ve got your customers and kept them, it’s time to get the most out of them! Here are our ways to help you make the most of the customer base you have:

Increase your Average Order Value (AOV)

A way of getting more out of your customers, is to increase the size of their orders or in other terms to increase your Average Order Value. An average order value (AOV) is the average order made by all of your current customers. By increasing your AOV, you are getting more from each order. Calculating your AOV is very simple. To do this take the sum of all of your current orders and divide it by the number of orders received.

In this example, here are the orders made by four different customers:

Jenny’s Bakery - $53

Andrew’s Grocery - $72

Bob Smith - $57

Andy McPherson - $81

To calculate the AOV of these orders, take the sum of all the orders:53 + 72 + 57 + 81 = $263 and then divide that value by four: $263/4 = $65.75. Calculating this value can be cumbersome if your business has a lot of incoming orders. (Don't worry, Local Line software has tools that do this for you!)

An AOV can be increased by many different methods. Here are some to get you started:

Inventory Lists

Many returning customers order the same thing on a weekly basis. They know what they like and that they can get it from you. In order to encourage these customers to step out of their comfort zone, be sure to send an updated inventory list frequently to remind customers of others products you source as well.

Order Discounting

This can be an impactful method for getting more from your current customers. Offer different discounting methods like orders over a certain threshold get free shipping. This gives a customer incentive to order a larger quantity to get the discount.

Price Increasing

If you increase your prices by slight increments, your AOV will automatically increase. You can play around with different values and see which works the best for your business and your customer base.

Increase Product Sizing

To increase AOV, consider increasing the size of your products. For example, if you sell a weighted product, increasing this product by 0.5 lb per pack, causes the customer to order more product from you per purchase. Due to the larger size of the product, the price of the product increases, therefore increasing the AOV.

Getting customers can be a lot of work - so make sure you utilize the current customer base you have. For more tips on how to keep your current customer base, check out this blog post.