Unlocking The Power of Average Order Value (AOV) For Your Business!

Have you heard about Average Order Value (AOV)?

Regardless of whether you hear it or not, as an entrepreneur, you may come across it as AOV helps to determine your business revenue.

So, what is AOV? Theoretically, AOV measures the average total of every order placed with a merchant over a defined period. In simpler words, AOV is the average amount of money customers spend each time they make a purchase from your business.

This helps in determining how much money you make per customer, evaluating your business, and identifying areas that can be improved or expanded. How can businesses increase their AOV? Here are some tricks you can apply:

Bundle Deal

Combining a few items and offering a cheaper price than buying them separately helps to pique customers’ interest because it is customary to assume that anything on sale is a good deal. As a business owner, you need strategies for which product to bundle and how to set prices without compromising much on cost (it should be cheaper than the combined price of each individual product).

Combinations also help in introducing and emphasising products that are likely less noticed by customers. As a result, a combination promo promotes other goods and boosts sales while enticing customers by allowing them to get all their desired products in one package at a reasonable price.

A local fast-food brand, and Rakan Usahawan PUNB known as CFC Sarawak, have followed the following principle:

CFC Sarawak offers a variety of combo sets that combine its famous chicken crispy menu with other products such as burgers, nuggets, and fries, along with a complimentary beverage. Customers could then purchase any sets available at a discounted rate instead of buying the item separately. Did you realise that they basically tried to ‘serve’ everything onto customers’ plates and sort of offer them the ‘power of control’ over what they ate?

Upsizing/Add-on…Almost Everything

If you are in the food and beverage industry, particularly in the beverage cafe-based business, perhaps this concept can improve your AOV.

Have you ever gotten caught up in this conversation while trying to buy a drink? “Why not upgrade to a venti? It’s only a few ringgit differences,” and almost every time the customer will say, “Yes, please!”

This strategy is all about convincing customers to buy upgraded versions of products they already intended to purchase. Offering them a limited number of cup sizes or topping flavour options, for instance, allows them to select the ideal preferences by paying extra money, which most customers thought was well spent.

The better they upgrade, the more revenue you’ll make!

However, as a business owner, you should never upsell your product; instead, approach your customer like a friend or problem-solver; be genuine and helpful, and try to use ‘encouragement’ or persuasive phrases whenever describing products and why they should go for the upgrade version. Of course, this requires skills and some experience, therefore practice, practice, practice!

Did you know that waiters and cashiers in Malaysia commonly use the phrases “Lagi?” and “Itu Saja?” to encourage customers to place more orders?

Buy More, Save Even More

Customers enjoy it more when there is a discount or promotion for the products they purchase because they can get a better deal than paying the regular price.

Customers sometimes feel guilty when they must spend more money on greater quantities. Therefore, proper planning is essential for an entrepreneur to ensure customers do not limit their spending and continue to purchase your goods.

You may run a “Buy More, Save Even More” campaign by giving customers a price break or discount if they purchase more items. This technique can indirectly allay their doubts about purchasing, especially in big amounts as they are aware of the price offer.

It is important to emphasise the amount of money they could save if they spent more!

However, research on the costs involved, as well as the profit and loss, must be done in advance to avoid any difficulties.


Of course, there are various other strategies to consider, such as offering gift cards, renting out your space for events, establishing a client loyalty program, and even offering free delivery for online businesses, depending on the type of business you run. Try the options and determine which one is the most effective, then work on that. Good Luck!


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