Proven Tactics to Skyrocket Average Order Value (AOV)

Subscription-based models are a powerful way to build recurring revenue and customer loyalty, but even established programs can plateau. If you’re experienced in marketing subscriptions but primarily rely on attracting new customers, it’s time for a strategy refresh. Here’s how to boost your Average Order Value (AOV) through your existing subscribers, opening up new avenues for growth.

Understand Your Baseline

Before shaking things up, gather crucial data on your current AOV. This metric tells you exactly how much your subscribers spend on average per order. To calculate it, divide your total revenue by the number of orders over a defined period. Benchmarking this starting point will help you measure the success of your new strategies.

Tactics to Supercharge Your AOV

Direct Mail's Role in the Digital Age

While implementing these tactics digitally is essential, direct mail offers a unique opportunity to stand out and further boost your AOV:
For new subscribers, go beyond digital welcome emails. A tangible kit with product samples, exclusive offers, and a beautifully designed card creates excitement and sets a premium tone from the start.

Curate mini-catalogs for individual subscribers based on their interests and purchase history. Its physical presence serves as a reminder, driving subscribers back to your website to explore targeted recommendations.

Include an exclusive direct mail insert for subscribers with a special “gift with purchase” offer valid only for a limited time, driving them online to add more to their cart.

Measure and Iterate

Track how these tactics impact your AOV compared to your initial baseline. See what works best and double down on successful strategies. Feel free to test, experiment, and refine along the way.
Remember: Your existing subscribers are your biggest asset in the subscription model. Treat them as VIPs and offer value beyond the essential subscription, and your AOV will soar, unlocking a profitable path to sustainable business growth.
While keeping your current subscribers happy is critical to increasing AOV, you don’t want to neglect your efforts to grow your customer base. Reaching new customers is critical to combat the inevitable decrease in subscribers over time. Path2Response can help you attract new customers who behave like your current subscription base through our unique modeling approach that factors in real-time web activity. Ask us how we can help you build a winning acquisition and retention strategy!

Let us know if you’d like additional tips or how to apply these tactics to specific subscription models!

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