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    Increase average order value to drive more revenue

    Course overview
    Lesson
    4 min read

    Drive repeat purchases and loyalty

    Retaining your customers and nurturing loyalty are essential for maximizing the long-term value each shopper brings to your business. This lesson explores how to identify and segment valuable audiences, craft targeted campaigns, and implement loyalty strategies to keep your customers coming back.

    Personalize content with data-driven messaging

    Imagine you have been a loyal Beantown Coffee customer for 5 years. Which email are you more likely to click on?

    Example emails from Beantown Coffee with subject lines: Cheers to five years! And What make Beantown special?

    Different AOV strategies work well for different groups of customers.

    Use data about your customers to craft the perfect messages and identify the correct audience. Then, you can strategically use this data to customize your content based on customer behavior and employ the right AOV strategies for each customer.

    Feature AOV promotions

    Use email, SMS, and push to promote discounts that help boost AOV, like sales on high-valued products and promotions on bundles.

    Use these copy examples for inspiration:

    • “Take advantage of your discount! Check out our new featured products.”
    • “Hey Emily, ready to check out our featured products and use your discount?”
    • “Don’t wait any longer! Shop by midnight for FREE shipping and 10% off.”
    • “Hydrate your way to healthier skin! Take 10% off and get FREE shipping this week with code H2O.”
    • “Limited-time offer ends at midnight, Mason! Enjoy 10% off and get a small gift just for you.”
    Flow email offering free shipping with minimum purchase

    Use clear CTAs

    Include a clear call to action (CTA) in every communication with your customer. Each piece of content should contain one main CTA that draws the customer's eye, and clearly lets them know what the next step is.

    To prevent lost revenue, set your CTAs to the exact page you want your customers to take action on. For example, if you are promoting a product, send customers to the product page rather than your website's homepage.

    Email with subject line "Our mouthwatering croissants" and a clear Shop now butotn

    Send targeted messages

    Klaviyo's Advanced KDP and Marketing Analytics features provide additional analysis, including RFM (recency, frequency, monetary) segments.

    RFM reporting automatically separates loyal customers from more at-risk customers.

    Use the following strategies:

    • Send lapsed shippers exclusive offers and winback messaging.
    • Send VIP experiences and early access to loyal customers.
    RFM funnel analysis

    Cross-sell related products

    Klaviyo's powerful predictive analytics include "expected date of next order," which uses customer data to predict when each customer will make their next purchase.

    With Advanced KDP, customers will also have a Best cross-sell date property, which uses data to predict the optimal date to cross-sell to each customer.

    Use this property to:

    • Cross-sell products when Expected date of next order or Best cross-sell date is approaching.
    • Send reorder reminders when you anticipate a customer needs to restock.
    Cross-sell flow text message cross-selling body lotion

    Use loyalty data

    Target customers who have not yet joined your loyalty program. Highlight the benefits of joining the program, like rewards, early access, and special perks, and make signup effortless.

    On the other hand, target and reward your most loyal customers. Use your loyalty program data to identify your loyal customers and share extra perks, like:

    • Additional discounts
    • Loyalty points
    • Early access
    Adding loyalty points to a loyal customer's profile

    Encourage long-term engagement

    Increasing AOV isn't just about one purchase. Establish a long-term relationship with your customers to drive higher value with each purchase.

    When you reward loyalty and foster deeper relationships, customers are more likely to return, explore new products or services, and spend more per order. The strategies below will help you encourage ongoing engagement, making each interaction with your brand more meaningful and profitable.

    Set up a loyalty program

    A compelling loyalty program is central to increasing customer lifetime value. Design a structure that rewards customers for every purchase. Think points systems, tiered benefits, or exclusive members-only offers. Not only do these programs boost repeat purchases, but they also make customers feel valued and special.

    Check out these loyalty programs that you can integrate directly with Klaviyo.

    Build brand loyalty and customer affinity

    Beyond transactional rewards, foster emotional loyalty by building brand affinity. This looks different for every brand, but use these best practices as a starting point to build up brand loyalty and affinity:

    • Share your brand mission and values consistently, especially post-purchase when customers are most receptive.
    • Keep engaging with personalized follow-ups and helpful educational content.
    • Share invitations to share feedback or join your community.
    • Collect and use user-generated content.

    This ongoing connection turns ordinary shoppers into lifelong advocates.

    Drive repeat purchases and loyalty