Ecommerce Growth

Increasing Average Revenue Per User: 18 Proven Strategies For eCommerce Stores

June 13, 2024

Increasing Average Revenue Per User: 18 Proven Strategies For eCommerce Stores

The new visitors on your site are lukewarm at best–which is why boosting the conversion rate of your website is such an arduous task.

Between cart abandonments, bounce rates, and browsing abandonments, what suffers is–your revenue.

But what if you could drive more revenue through the current high-intent customers?

That’s where the concept of average revenue per user (ARPU) comes in.

We have listed down 18 super easy ways to increase your average revenue per user.

Let’s dive into them.

18 simple ways to increase your eCommerce store’s ARPU

1. Offer volume discounts

2. Bundle relevant products

3. Upsell and cross-sell in the cart

4. Send them post-purchase offers

5. Provide flexible payment options

6. Enable free shipping–above a threshold

7. Launch limited-edition products

8. Try personalized product recommendations

9. Offer subscriptions–in the buy section

10. Reward higher spending

11. Recommend products for loved ones

12. Place your new launches on your homepage

13. Find smart ways to promote your products via email

14. Run limited-time offers

15. Highlight benefits on the product page

16. Unlock a free gift–above a threshold

17. Offer product samples

18. Run seasonal promotions

1. Offer volume discounts

Instead of just offering flat discounts, let shoppers become eligible to get a couple of bucks off by adding more items in their cart.

Your volume discounts can look like–Buy 3 Get 1 free and Buy 5 Get 2 free or Buy 2 units get 10% off and Buy 3 units get 20% off.

If you have apprehensions about it, let’s understand the profit margin changes with such offers with an example:

Suppose,

Product cost: $20

Selling price: $50

Profit: $30

Total profit without promotions = $30

Now, let’s see what happens with the discount–Buy 3 Get 1 Free

Product cost for 4 products: $80

Selling price for 3 products: $150

Profit: $70

Profit per piece = $70/4 = $17.5

Although with volume discounts your profit per item goes down, the number of items sold, total profit per user and the average revenue per user go up.

2. Bundle relevant products

When you are bundling products, keep in mind–the products should relate to each other in some way. They can either complement each other, like a phone case and a phone or be used together, like batteries and a torch.

For best results, your product bundles should make sense and address a specific need your audience might have.

For example, a customer buying a new computer might need a screen cleaner, a spare USB cable, and a suite of software to install. Grouping together products in a practical way not only provides extra value but it shows customers you understand their needs.

Check how Quip creates bundles that really increase the shoppers’ convenience.

3. Upsell and cross-sell in the cart

Breaking it down–you are upselling when you sell an upgraded version of the product the shopper has planned to buy and you are cross-selling when you sell an additional product to your shopper–either of the two strategies increases your average revenue per user.

Let’s understand a few ways to improve your upsells.

Promote your most reviewed or most sold products
Give prominent space for the upsell
If you have customer personas in place, use those to make relevant suggestions
Make suggestions relevant by giving context: Why should I buy that instead of this?

And always make sure you suggest products from the same category. Don’t ask your website visitors to buy a 17-inch monitor when they’re shopping for a MacBook Air. The two products don’t satisfy the same needs.

Use cross-selling on the checkout page to induce impulse buying.

Cross-sell products should be at least 60% cheaper than the product added to the cart
Go for products that are easily missed out: filters for lenses, earphones for mobile phones, lighters for a gas stove, etc
Try not to bombard shoppers with too many choices that distract them

Also read: eCommerce On-site Optimization: 26 Strategies To Boost Conversions

4. Send them post-purchase offers

Once your customer has completed the purchase, it is a great idea to give a coupon for the next purchase on the ‘Thank you’ page.

This approach capitalizes on the customer's purchasing momentum, encouraging them to make additional purchases while they are still in a buying mindset.

Limit the validity of the offers to let’s say a month.

Keep telling the customer about the coupon–even after mentioning it on the Thank you page.

Send emails reminding them about it, drop a physical coupon in the delivery package and send an email and SMS informing them about the expiry of the offer at least 2 days prior to the expiry date.

This will encourage shoppers to come back for another purchase to redeem the coupon.

post-purchase deals on thank you page eCommerce

5. Provide flexible payment options

When something is to be received in the future–the value of it is perceived to be lower–this is called temporal discounting.

Let’s use this to increase your average revenue per user.

Deploy Buy Now Pay Later option.

When customers know they don't have to pay immediately but can defer the payment to the end of the month, the immediate "cost" of the purchase feels less significant.

This reduced immediate financial impact can encourage customers to spend more than they might if they had to pay upfront.

6. Enable free shipping–above a threshold

Free shipping above a threshold taps into the allure of "The Power of Free."

When shoppers see something for free–they often assign disproportionate value to it.

And free shipping serves as a compelling incentive that triggers positive emotions–leading to increased cart sizes.

A great way to make the most of it is–to place a progress bar on your website hinting shoppers to add more to the cart to qualify for free shipping.

free shipping above a threshold progress bar

7. Launch limited-edition products

This is how you can capitalize on consumers’ desire for unique items while increasing your average revenue per user.

Choose occasions and themes that resonate with your target audience to launch limited-edition products. This could include holidays, seasonal events, or culturally relevant moments.

Every limited-edition product should tell a story. This narrative should connect with your audience on an emotional level, making the product more than just an item to buy, but a part of a larger experience or story.

Clearly communicate the exclusive nature of the product and the limited time it’s available.

And lastly, provide early access to your loyal customers–makes them excited and even more loyal to your brand.

Promote these limited-edition products through emails, SMSes, social media campaigns and digital ads.

8. Try personalized product recommendations

So what exactly are “personalized” product recommendations?

These are recommendations based on:

User’s past purchase and browsing history
Geographic location
Activities of other shoppers with similar behaviors
General business rules (like best-selling or trending products)

The most effective places for recommendations for you to increase your average revenue are:

Category pages where you can give product recommendations by showcasing items most commonly bought together or your best sellers.

Next is the product page where the purchase intent gets higher. Offering alternative and relevant products whilst they browse can see them potentially purchase more than just the original product.

The last space is the cart page–and this is slightly tricky. Personalized product recommendations here can serve as reminders for purchasing opportunities consumers may have overlooked – just like the racks of magazines and gum at the cashier in the grocery store. But at the same time, you don’t want to distract them and pull them up the funnel–hence, suggest 1-2 very relevant items on the cart page.

9. Offer subscriptions–in the buy section

Subscription customers typically exhibit a higher level of commitment and engagement compared to one-time buyers–increasing your ARPU.

Add your subscription plans along with a one-time purchase option on the product page itself–highlight the benefits of opting for a subscription.

Additionally,

Offer tiered subscription plans with premium features–encourage customers to upgrade to higher-value plans.

Regularly introduce new and exclusive content or products to keep subscribers engaged and willing to pay more.

Also read: eCommerce Marketing Strategy: 31 Immediately-Actionable Ideas

10. Reward higher spending

A sense of achievement gives rise to intrinsic motivation for people to take action.

This is what rewards do.

Give a goal to shoppers in terms of spending for them to qualify for rewards and benefits.

To nudge customers to buy more from you, show the next level benefits to them on the thank you page and in personalized emails. Also, tell them how far they are from getting there.

This will encourage them to shop from you thereby reducing the churn of your eCommerce store.

You must also check out: 51 Marketing Ideas For Online Pet Stores (With Examples)

11. Recommend products for loved ones

When you recommend products for loved ones, you essentially tap into the emotional and sentimental values of your customers.

To capitalize on this, you can create dedicated sections for "Family Sets" or "Pet and Owner Collections," showcasing curated items that pair well with what customers are buying for themselves.

For instance, if a customer is purchasing a stylish shirt, recommend a similar shirt for their child or a matching accessory for their pet.

Additionally, consider implementing personalized marketing strategies–such as targeted email campaigns and personalized product suggestions on the website.

For example, when a customer adds an item to their cart, a pop-up could suggest complementary products for their family members, like coordinated outfits for their partners or matching accessories for pets.

12. Place your new launches on your homepage

Highlighting new products can create a sense of exclusivity and excitement.

Place your new launches on the top of your homepage–use words like "New In" or "Just Arrived”.

By highlighting these new products, you capture the attention of both returning and new customers.

Consider adding limited-time offers or early-bird discounts to these new items–further incentivizing customers to make immediate purchases.

Additionally, enhance the effectiveness of new product promotions by integrating personalized recommendations. Utilize customer data to suggest new arrivals that align with individual preferences and past purchasing behavior.

For instance, if a customer frequently buys athletic wear, feature new releases in sports apparel or related accessories tailored to their interests. Regularly updating this homepage section with fresh launches ensures customers are consistently engaged and exposed to new products, encouraging them to explore and buy more.

You might also like: Grocery eCommerce Email Marketing: 28 Incredible Examples

13. Find smart ways to promote your products via email

First off, segment your email list to target different customer groups with tailored recommendations. For example, if a customer frequently buys skincare products, send them emails showcasing the latest skincare arrivals or special bundles that match their preferences.

Then, design visually appealing emails that highlight new product launches, exclusive offers, and personalized recommendations.

For instance, craft emails featuring high-quality images and compelling descriptions of your latest arrivals, accompanied by eye-catching subject lines like "Discover Our Newest Collection" or "Be the First to Shop Our Latest Products."

A few email sequences that you can create are:

New arrivals and insider tips

Subject line example: "Fresh Finds Await! Plus, Insider Tips Just for You."

Content idea: This email can introduce subscribers to the latest arrivals in our store–showcasing exciting new products across various categories. Alongside these new releases, include expert tips or usage ideas related to our products.

Customer favorites and offers

Subject line example: "Tried, Tested, and Loved: Shop Customer Favorites Now!"

Content idea: Feature best-selling products based on customer feedback and reviews–highlighting their popularity and reliability.Also introduce limited-time offers or special discounts on select items to create a sense of urgency. Additionally, include testimonials or user-generated content to further validate the quality of these products.

Expert recommendations and bundle deals

Subject line example: "Top Picks from Our Experts + Deals You Can't Miss!"

Content idea: Showcase curated product recommendations handpicked by experts, focusing on must-have items or seasonal favorites. Also, introduce bundle deals or product sets that offer value and convenience to customers. Provide expert advice on product usage or styling tips.

Exclusive sneak-peaks and VIP access

Subject line example: "Get Ahead of the Curve: Exclusive Sneak Peek + VIP Perks Inside!"

Content idea: Offer subscribers an exclusive sneak peek at upcoming releases or future collections, creating excitement and anticipation. Additionally, introduce a VIP program or loyalty rewards that offer special perks such as early access to sales, birthday discounts, or free shipping.

14. Run limited-time offers

Limited-time offers are a classic way to capitalize on FOMO.

You can host flash sales, offering steep discounts on select products for a short period, like "24-Hour Flash Sale: Get 50% Off Select Items!"

Alternatively, you might create exclusive deals with a limited quantity available, such as "First 50 Customers Get a Free Gift with Purchase!"

You can promote these offers through various channels–such as email marketing, social media, or on your website's homepage.

Additionally, implementing countdown timers or prominently displaying the remaining time for the offer can further emphasize the urgency and drive conversions.

Also read: 31 Insanely Powerful Online Promotion Ideas For eCommerce

15. Highlight benefits on the product page

Your shoppers browse through your website before making a purchase–make your product descriptions so enticing that shoppers can’t stop themselves from adding a few extra products to their cart.

For this, add a section just below the buy section–the second fold of your product page–highlighting the key benefits of your product.

Make it catchy and readable–add images and icons and avoid adding a lot of text to it.

16. Unlock a free gift–above a threshold

The key is to choose a threshold that encourages customers to spend more than they typically would–without making it seem unattainable.

For instance, if your average order value is $50, you might set the threshold at $75 to encourage a significant yet achievable increase in spending.

To implement this, clearly promote the free gift offer on your homepage, product pages, cart page and at checkout.

Make sure to add value through the free gift.

Let’s say you run a beauty eCommerce store, offering a popular and exclusive travel-size item as a free gift can be highly attractive.

Also, consider adding a progress bar that shows how far the shopper is from unlocking that free gift.

17. Offer product samples

Can you really expect a customer to buy a perfume bottle without trying it with a couple of sprays? No, right? And to enable this on your eCommerce store, consider sending samples with purchases.

When customers receive a sample of a product they haven't tried before and they like it, they are more likely to return to your store to purchase the full-sized version.

Ensure that the samples you offer are relevant to the customers' purchases and highlight your best or new products.

For example, if a customer buys skincare products, including a sample of a new serum or moisturizer would be ideal.

Do read: Back To School Email Marketing: 24 Amazing Examples From eCommerce Brands

18. Run seasonal promotions

Seasonal promotions capitalize on the natural shopping cycles of customers–such as holidays, back-to-school periods, or summer sales.

By offering limited-time discounts, bundles, or exclusive products during these peak shopping times, you can encourage customers to make larger purchases and take advantage of the special deals.

Plan your marketing calendar around key dates and seasons that are relevant to your target audience.

Promote your seasonal offers prominently on your homepage, through email campaigns, and across your social media channels to ensure maximum visibility.

For example, during the winter holiday season, you could offer a discount on gift bundles or provide free gift wrapping with purchases over a certain amount. During the back-to-school season, consider offering special deals on essential items or creating exclusive product bundles for students.