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How Loyalty Programs Supercharge Your eCommerce Sales with Increased Average Order Value

  • Posted on September 15, 2023 by Robert
  • Reading time about 5 minutes
ecommerce loyalty program

In an era marked by the proliferation of eCommerce apps, businesses are in the race to drive more sales. Average order value (AOV) refers to the mean amount spent every time a customer places an order through an eCommerce platform. It is one such metric that every eCommerce app owner wants to enhance so that customers can add extra items to their shopping carts to effectively increase their overall sales.

Today, merely attracting customers isn’t enough. eCommerce platforms need to boost the value derived from each transaction. Retail loyalty program software is one such effective tool for increasing the AOV for eCommerce businesses by providing incentives, personalization, and exclusivity that encourage customers to spend more. When executed well, these programs not only boost AOV but also foster customer loyalty and retention, contributing to long-term business success.

How Loyalty Programs Increase Average Order Value

Loyalty programs can have a significant impact on increasing the average order value (AOV) for eCommerce apps or businesses. eCommerce loyalty program provider like Novus Loyalty helps e-commerce businesses increase their average order value with an enterprise loyalty management system to enhance and boost the AOV of customers.

1. Incentivizing Larger Purchases

Enterprise loyalty management system helps eCommerce owners reward customers with points or discounts based on their purchase value. Offering bundled discounts, incentives, and savings on purchasing multiple products in the same cart makes it more cost-effective to improve the average order value on your eCommerce app. As customers aim to earn more points or unlock higher loyalty tiers, they are encouraged to make larger purchases.

2. Product Personalization Through Cross-Selling and Up-Selling

Up-selling inspires customers to consider a more expensive variant of items while cross-selling suggests complementary items that enhance the main product’s value. eCommerce loyalty program provider like Novus helps you in designing a loyalty program that encourages customers to explore a wider range of products or premium options with personalized cross-selling and up-selling of products to enhance higher AOV.

3. Deliver Exclusive Discounts and Offers

Everyone loves discounts and offers while shopping online. Enterprise loyalty management system allows you to deliver personalized and exclusive deals, discounts, and rewards to customers who are more loyal to your brand and purchase frequently. This added value can motivate customers to add more items to their cart to take advantage of exclusive offers and discounts to increase AOV.

4. Integrate Tiered-based Rewards for Customers

Loyalty programs with tiered-based structures where customers can unlock better rewards as they accumulate more points or reach higher levels of loyalty. This progression can motivate customers to spend more to reach the next tier and access more valuable rewards. Customers can earn badges, compete with others, or participate in challenges to make shopping more engaging. This engagement often leads to higher AOV as customers strive to achieve specific goals within the program.

5. Retargeting and Abandoned Cart Recovery

Retargeting and abandoned cart recovery strategies are perfect for increasing the average order value. Existing customers are more likely to spend more when compared with newly targeted customers. Re-engaging customers and giving them additional offers, discounts, and perks about their forgotten cart can amplify a higher average order value.

6. Referral Programs Brings Higher AOV

Enterprise loyalty management system allows you to deliver referral incentives to your existing customers for referring new customers. When customers are motivated to refer friends and family then it can lead to an increase in both the number of customers and the AOV. On successful referral, reward your existing customer as well as new customer so that they both feel motivated and can bring in more potential customers. This builds a sense of trust, and they will come to shop again and again.

How Does AOV Enhance Your Customer’s Lifetime Value?

Customer Lifetime Value (CLV) represents the amount of revenue or profit gained from one customer throughout the period of their commitment to a business. Average Order Value (AOV) plays a significant role in enhancing a customer’s lifetime value because when they shop more, the business will gain more profit.

Most eCommerce business owners think that CLV is the amount of profit that a customer spends throughout the year and how much they spend to acquire new customers. When customers stay engaged with a particular eCommerce platform then they are likely to purchase more. Thus, eCommerce stores that have a higher AOV can spend on advertising to bring in customers.

By focusing on increasing AOV, you not only enhance short-term revenue but also set the stage for improved customer lifetime value. Customers who consistently spend more per transaction are more likely to remain loyal, refer others, and contribute significantly to your business’s long-term success.


Loyalty programs are effective tools for increasing the AOV in the eCommerce industry by providing incentives, personalization, and exclusivity that encourage customers to spend more. eCommerce loyalty program provider like Novus Loyalty helps eCommerce businesses in integrating loyalty programs that not only boost AOV but also foster customer loyalty and retention and contribute to long-term business success.

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