Improving Average Order Value (AOV) is an ongoing objective for businesses seeking to enhance revenue. Technology plays a crucial role in this endeavor, offering a range of innovative tools to boost AOV. From personalized recommendations to streamlined checkout processes, technology can be leveraged to substantially increase AOV even without relying on cookies.
Personalization Algorithms
Leveraging machine learning algorithms, businesses can provide highly personalized shopping experiences to customers. By analyzing browsing behavior, algorithms can create customized product recommendations. These personalized suggestions not only improve customer satisfaction but also drive extra purchases, ultimately increasing AOV.
Data privacy concerns are increasing, prompting businesses to protect customer data more effectively. Calls to restrict targeted advertising are growing, highlighting the importance of privacy-focused strategies.
“The practice of targeted advertising is increasingly under fire. New rules now under consideration in the EU could put limits on how tech companies make money… And it’s not just a European issue. Some Democrats in Washington have proposed a bill that seeks to nearly ban targeted advertising altogether.” (Jillian Deutsch).
Seamless Personalisation
Utilizing a highly precise AI tagging system is one way to avoid privacy issues. By incorporating this tool into an e-commerce platform, brands can enable personalization without relying on intrusive data collection methods. This fosters trust from the beginning of a shopper’s journey.
A growing number of people are becoming more conscious of their data and privacy, and are less inclined to share such information. “Today’s businesses have a fragile social contract with their customers. They have a responsibility not only to protect customers’ data to the highest standards….businesses must deliver on both fronts in an increasingly complicated regulatory environment.” (Adobe Digital Trends).
The AI-driven tagging system enhances all personalization products and features. Extracting over 20 tags per item through Selectika’s platform (for example), it customizes each shopper’s experience from their first click without depending on cookies.
What are the capabilities that an artificial intelligence (AI)-driven tagging system can provide and enhance?
- Personalized Product Recommendations/Shop Similar
- Dynamic In-Cart Recommendations/Complementary Items
- AI-Powered Chatbots
- Sizing Solutions
A/B Testing and Optimization
A crucial element in boosting AOV is to constantly test and refine upselling and cross-selling tactics to pinpoint what connects best with the target audience. Trying out various messaging, placement, and timing to establish the most efficient method for increasing sales and optimizing AOV.