Ways to Increase Average Order Value (AOV) Part 1 -

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Google is not going to tell you the products that actually sold

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from the product that was clicked.

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So Google is not gonna share with you what product was actually sold.

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What they're gonna tell you is that a product sold and a conversion value

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was made something to consider when looking at the same metric that I'm

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gonna share with you here in a moment is are you tracking the tax and

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the shipping that is also going to increase the average order of value

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of a product that you are looking at.

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And sometimes.

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Throw a false positive that product wasn't actually sold when it was

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all right.

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Sales to increase average order value.

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So average order value is something that a lot of clients have the capability

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to to increase the sales of those products into campaigns themselves.

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But while also looking at the LTB as example at the same time.

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So for clients that have a different variety of products and some clients

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sell products that are $10 and all the way up to a thousand and now.

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Google is gonna try to sell whatever sells the fastest and the easiest,

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the quickest and the cheapest.

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So Google's gonna try to purposely go after the fast, easy wins

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that it wants to go after.

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Well, typically what that is is smaller AOV purchases.

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So smaller average order values so that it's, the 10, 20, $30 items

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are gonna sell more frequently.

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Well, that hurts Roaz and that also hurts a.

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One thing that's really interesting is Google is not going to tell you

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the products that actually sold from the product that was clicked.

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And so what this means is that I don't know where my window went.

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So let me get signed in here to a different ads account

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is just being really slow.

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So Google is not gonna share with you what product was actually sold.

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What they're gonna tell you is that a product sold and a conversion

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value was made, but that conversion value is not of that product.

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Perhaps.

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So we don't essentially know something to consider when looking at the same

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metric that I'm gonna share with you here in a moment is are you tracking

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the tax and the shipping that is also going to increase the average order value

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of a product that you are looking at?

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And sometimes we'll.

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Throw a false positive that product wasn't actually sold when it was a good rule of

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thumb is if there's not, a sale running or if there's not a discount that is just

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added to the card, to when they're ready to buy a good rule of thumb to look at

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is if a product price is much higher than the conversion value of that one sale,

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it's a good indication that something that was clicked on wasn't actually sold.

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And here's what I mean, I'm gonna go into the this campaign here.

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I'm gonna look at a product.

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And what do you wanna do is isolate down to a day where it maybe only

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one sale of one product was made.

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So if we look at let's do this actually that's 14 days, cause this

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isn't a high spending account here.

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So we have a $19 product.

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Now this $19 product had 68 clicks and one sale.

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We made 19 bucks.

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Right?

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Well, if we look at the conversion value, it's $76 and 88.

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Well, that's weird.

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That's how would a one conversion on this $19 product make $76?

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What Google is not gonna tell you is this may not have even the

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product that was actually sold.

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So if this product here is getting $76 conversions on a $19 product, we

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know that it was either this product that was sold along with other

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products or multiples of this product.

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Or multiples of other products or even five sales of something else.

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So all this is telling you is that there was a sale that made $76 that

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came from the click of that product.

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So before we can understand AOV, we have to understand

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what's actually producing AOV.

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Now the bad part about this here in these columns is I won't be able to

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use custom columns, which is sometimes difficult because what you would wanna do

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is take the average, take the conversion value, divided by the conversions, and

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you'd be able to see what the average order value is of that product that was

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clicked on that was end up being sold.

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So it's a bit of a manual process and there's a lot of research that

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has to be done to identify what is the actual AOB of a product.

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Now there's certain products that just looking on the face of it, you say,

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well, man, I can't sell a $19 product.

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This is gonna be terrible.

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I'm gonna spend $122 to get cost per conversion on a 19 product.

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Oh, that's gonna be horrible.

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Now this $19 product might deliver you $113 in sales after two conversions.

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Two conversions time.

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19 is $38, not 113.

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So you first have to go through all of your campaigns and all of your products

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and identify what's actually delivering you a high average order value then.

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You have to go and research through analytics.

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Analytics is gonna tell you the clicks that came in off of a campaign

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and what products were sold, and also what multiples of products.

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There's a way that you can actually start to do research and say, Hey, what

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we found is that the people that click on these pillowcases actually have a

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higher average order value than what the product is selling a quick way to do.

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is I always like to do a value per conversion, which is essentially

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the average order value.

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So if you go into the, the columns here, let me go back.

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I'm trying to do more instructions here.

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So the way to find an average order value of a group of products is if you have

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them separated up by let's just say like headbands and shower caps, and pillowcase,

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you go into columns and go into modify columns, go into your conversions.

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And you're gonna see this metric here, value per conversion.

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This is approximately how much on average each one of your conversions

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is worth average order value.

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If you're tracking obviously only e-commerce for your conversions.

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So in the average order value here you look at what is actually

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selling as a value per conversion.

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So pillow cases, we already kind of know, Hey, these $19 pillow cases, a lot of

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times people have more than one pillow.

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So they order more than one, or they're gonna buy few different styles.

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They might buy.

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Products two of each style because they have two pillows

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and they like to cycle them out.

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Let's just assume that, well, that average order value is $84 98 cents.

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That's much higher than the $39 and 27 cents.

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Well, why is this double again?

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Cuz we just looked at what is the actual order value of those type of products,

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but let's also take a look at pro hair, for example, $39 and 27 cents.

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Well, if we look at those products here, this is not a glitch.

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And now back to your regularly scheduled program.

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What we can identify is that if we see a conversion of a $12 product

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and one sale made $39, okay.

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An $8 product, one sale, $40, these are lower prices.

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And the average cart value is lower when they're purchasing these products, or when

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they're clicking on these products and purchasing, you have to understand why are

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they actually clicking on these products?

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Well, a, three piece bun twist, or maybe a, ponytail Clip may not deliver

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you a high average order value.

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Yeah, it's delivering me a 1.52 and a three point 13

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version value by cost as row.

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I'm still gonna run these, but they're not gonna be delivering

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me as good as an average order value as our pillow cases are.

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So if we go back and we look at what the daily aspect is, the pro

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hair of spending $200 a day in the pillow case, I'm spending seven 50.

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Well, the average order value is higher, which means my row as it's.

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This is only possible though.

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If you're breaking them out or will need to plan to break them out.

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When you break out your products, you can adjust budgets accordingly.

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You can adjust for AOB.

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You can adjust for profit margin.

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You can adjust to Roaz.

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You can adjust to.

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LTV, if you like, or you can even just adjust to what's working this

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month compared to previous month, if it's a cyclical type of market.

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So when you're looking at the average order value, try to

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identify what is delivering you a higher average order value.

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Typically that also will mean a higher row as, and you'll start to spend accordingly.

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Now.

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Here's what we don't know though, is why is pillowcase so high?

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Is pillowcase actually selling pro hair inside pillowcase could be.

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This is a much harder situation to do takes much more time, but one quick

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way to not hop into analytics just yet, and identify what your average

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cards are selling is going to tools and settings and into your conversions.

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This also helps if you're running Shopify as well.

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It's a little bit more if you're running Shopify, because it it's an easier way to

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identify the conversions, but purchase GTM here, the webpages that were tracked, I

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can actually start to look at, okay, well, What is actually selling in the cart.

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So we look at here, we say, okay, we have these, these purchases here

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$120 purchase, what was purchased and you can actually go to the page

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and identify when I have big items.

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What's typically involved.

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There's a list here of things that were sold.

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Shopify will do this every single time.

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And if you have a lot of clients that are Shopify, it's a very good way to say, Hey,

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I've been looking through the conversions.

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I noticed that actually these purchases actually happen quite frequently.

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But Jasper remember when I, did this actually with a client

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this week, it was on Tuesday.

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I said, Hey, we have one campaign.

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That's crushing it.

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And one campaign that does, it has not made a sale this week.

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And I said, I looked into every single purchase that took place this last week.

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It found that the other product that we're trying to market is actually selling the

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other campaign is actually selling it because the other campaign has product a.

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And the sales from campaign a had campaign A's products,

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but also campaign B products.

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So now we're just using an attribution model.

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Essentially saying I'm seeing the ads for product a, I'm

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seeing the ads for product B.

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But when I click on the ads on product a I'm actually buying

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ads in product a buying products of campaign a, of the product.

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A and I'm also adding to cards, the, the products from campaign B.

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So campaign B says I'm showing ads.

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People are getting clicks from, I'm not getting any conversions.

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All we did was just identify the path that people are doing to take

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when they were the people that are taking when they purchase something.

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So I just started to reduce, spend in the other campaign and say, I'm just

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gonna put that into this campaign.

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This is obviously the path that people are taking when they grow to purchase.

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The way to find this out in more detail is to hop into analytics.

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So I'm gonna hop in analytics now and I'll share with you how to

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identify the products that are actually sold, because you can.

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Necessarily increase AOV.

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You're not gonna move a market by what you're doing in Google ads.

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I'm not gonna be able to tell people, Hey, trust me, buy two of this.

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It's gonna be good for you.

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That doesn't happen.

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We're gonna beat our heads against the wall until we're blue in the face.

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Basically not being able to increase the average order value.

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So we have to look for ways to identify where is the average order

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value, the highest and lean into that that will raise your average over

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or all value in the account, which means your ROAS goes up, which means.

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Your LTD should also be better, which means you can spend more,

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which means you can scale more.

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So forgive me, cuz I don't know which account this is in.

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So just gimme a moment.

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Should try to find this analytics account.

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Okay.

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So in this account, here you go into your analytics account.

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And you go into conversions, eCommerce, product performance,

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and inside of conversions, eCommerce, product performance.

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It will tell you what was sold.

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This is attribution agnostic.

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This is channel agnostic.

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This is just what's sold on the website.

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It's a beautiful, beautiful metric because you get to see everything.

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Now you get to see what is actually saw the best.

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Here's a fun way to do this.

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If you look at this product here, what we'll see is there's $92,000

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in revenue this past week and 4,735 purchases for a quantity of 5,127.

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Well, what does that mean?

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The average order quantity is 1.08.

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That's good.

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When you see a pillowcase here that has $20,000 in sales and the unique purchases

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are 560, but the quantity is a thousand.

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This is two products per purchase on average.

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Now, if I was going for AOV?

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If the average price is 18 and people buy 1.0.

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Or if this is a 19 and 1.96, which one would I start to push more?

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I'm gonna take the one that sells at $40 more often the one that sells at 19.

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So our average order value isn't necessarily moving the market.

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We're not trying to convince people to spend double.

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We're simply just going to bring more attention to what already is

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spending double, which is the reason why I'm spending triple on pillowcase

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is rather than everything else.

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That's why my row as is high.

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So this is working well for clients that have a multitude of products.

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That's, what's interesting for the people that have a singular product,

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it's not gonna happen from Google ads.

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unless you're running a sale, a bundle with a discount.

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Or you're leaning into a upsell offer on the, page or you're doing

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email or even just SMS follow up.

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For example, the average order value on a singular product or a group of products

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is not gonna do well with this model.

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This is for clients that will have to have at least 20 or 30 SKUs.