What metrics do you track to grow your business? One of the most crucial metrics to assess the health of your business is Average Order Value (AOV). You may already be aware of a variety of strategies to increase AOV, such as Upsells, Cross-sells, Product bundling, or Free shipping with min order value. However, there is another method—Group Order—to amazingly improve AOV that you might not have tried. Big Sale season Black Friday Cyber Monday (BFCB) is coming, read the article below to discover how amazingly Group Order function can maximize and level up your average order value.

Go through the article and you'll grab:

  1. What's Average Order Value (AOV) and how to calculate it
  2. How Group Order helps you increase your AOV
  3. How to enable Group Order function for your online store

Check it out and make more money now!

What's Average Order Value (AOV) and How to calculate it?

What metrics do you monitor to assess your business health? Which one do you optimize first?

Stop thinking your business is doing well because of high website traffic and conversion rate. Instead, consider your order value and the amount that customers are spending to determine whether you can earn more. Increasing revenue or optimizing return on ad spent is typically one of the first things business owners aim to improve. However, growing value for each order, have you tried it out?

Obviously, no measure of central tendency is best, but using only one is certainly the worst. Therefore, monitoring and optimizing all of them is the best way to maintain the health of your business and boost revenue.

Let's get to know what's average order value is and how to calculate it.

According to Shopify, average order value is the metric that tells you the average amount customers are spending at one time on your online store.

 

 

 

To calculate, follow the formula:

AOV = Total Revenue / Total number of orders

The numbers are reported and calculated in the same period of time

Let's say you own a clothing store with total revenue of $1200 in October. The 1200$ came from 100 orders, your average order value was $12

Some following sale strategies people often use to increase AOV: 

  • Upsells

  •  Cross-sells

  •  Product bundling

  •  Free shipping with min order value

Group Order: A new approach will be beyond your expectation

There's no denying that some traditional sales tactics and methods may significantly raise AOV, but there's another approach that can be just as successful, if not more so: Group Order.

The methods stated above basically squeeze more value out of a single customer, and don't really assist to attract more potential consumers or grow your client base. Therefore, the most effective way to increase AOV is to employ both an extensive and intensive approach, using group orders to drive more potential customers and get more people involved in one cart, then using traditional sales strategies to nudge individual customers to pay more. Although many people order in the same cart they are still treated as a single customer. They pick orders individually on their own device and they are free to add their favorites to the shared cart.

Keep your attention till the next part, you'll find out what's group order and how group order helps you increase your AOV!

 

How Group Order helps you increase your AOV?

Group Order's definition

Find out what Group Order is first before seeing how marvelously it may help you increase your AOV.

  • A group order is a buying activity where a group of people join a shared order link that they can use to place orders together

  • Each person adds their own orders to a shared online cart from their own device at the same time

  • They also get delivered together to the same location at the same time. Orders are individually packaged and labeled for easy distribution

  •  The owner pays for the full cart and splits the payment among the invitees later

How Group Order helps you increase your AOV?

In essence, group order allows you to include more individual orders in a cart. There is no need to spend a lot of money on marketing to attract more clients and individual sales when you can make more in a single transaction by accepting bulk orders instead. 

Rather than trying to persuade customers to buy as many products as possible, Group Order is a radical and sustainable solution that grows AOV by improving customer experience and giving them numerous benefits (such as saving on delivery fees and purchase costs). It has even more significance if you are annoying your customers by using irreverent upsell or cross-sell products as a part of your sales tactics

>>> So, what drives buyers to place a group order with their friends? Discover here

There are a lot of additional advantages that you might get when enabling this function for your online store:

  • Increase customer experience

  • Get more customer base

  • Level up your total revenue

  • Set a new standard for business competition

  • Reduce marketing costs

  • Reduce delivery costs and staff resources

  • Process orders faster

Therefore, Group Order is considered a new e-commerce standard, the future of online shopping

How to enable Group Order function for your online store

 

Merchant's flow

 

Group Order is designed to be the easiest to set up, most user-friendly, and straightforward on the Shopify app store.

No code required, custom CSS included, and fully integrated, you are easy to start Group Order with five steps:

1. Get the app installed here

2. Enable this function

Group Order comes free with all stores having DingDoong installed. All you need to do is go to DingDoong app on Shopify admin, go to the tab Group Order, enable this function and you're ready!

        3. Decide the position & tailor the Group Order widget

You are free to decide the look & feel of the widget in terms of position, color, style, format, icon & wording to visually fit better to your store.

        4. Choose your promotion

Group Order can be used to meet promotional requirements, this is what entices online shoppers to place group orders with their friends the most.

You should thus build a discount strategy to generate revenue while your customers are still satisfied. Go here if you are new to all discount settings for your Shopify store

Although DingDoong does not directly aid you in creating discounts, it fully integrates with all discount apps.

If you run into a problem when enabling this feature for your store, get in touch with us at This email address is being protected from spambots. You need JavaScript enabled to view it.. You can be confident that our developers are always available to make sure you have a hassle-free experience.

       5. Go to the storefront and look it over

You are at the final step of your settings. Remember to double-check your settings both in the app and the storefront (widget's look & feel, discounts & promos) before your customers begin their Group order experience.

Customer's flow

Your customers get a friendly experience with simple steps:

          1. Create a group order

A group order is created with a custom name, either at the beginning of shopping when a store is chosen or at check out. A link will be created to invite people. The one who created the group order is the owner of the cart. 

         2. Send invitations to friends

The link is sent to the people whom the owner wishes to invite. Their friends enter their names and start shopping.

         3. Add items to the cart

Both the owner and their friends can add items to the cart. The owner can see who’s adding what and at what price.

        4. Review the cart

Everyone finishes their shopping and finalizes their decisions. The group’s owner reviews the cart, decides which one they’re willing to pay for, and edits the final cart. He is the only person who has control of all the invitees’ orders

        5. Pick delivery date & time (optional)

The host consults his invitees to make the final decision on their preferred delivery date and time.

       6. Payment

The owner of the group pays for everything in the cart, either theirs or their friends'. Their friends pay the owner their due personally. 

       7. Shipment

The cart is shipped to the owner’s chosen address.

>>> Get in touch with us at This email address is being protected from spambots. You need JavaScript enabled to view it. for a docs tutorial, both for you and for your customers to make the most of this feature. 

What are you waiting for?

There is no need to sign up with a third party and split the commission with them, you completely control the whole purchase process, from fulfillment to shipping and payment. It is incredibly effective and simple to get started.

Group Order is fully free during BFCM. Click here to get the app installed, or email us to ask for a 1-on-1 trial with our technical support!

So, What are you waiting for? Get the app to level up your sales now!What's Average Order Value (AOV) and How to calculate it?

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