09 Jan 9 Strategies to Increase Average Order Value for Craft Businesses
Craft businesses are more than just transactions—they’re a celebration of passion, creativity, and connection with customers who appreciate the art of handmade goods. Yet, even the most thriving craft businesses can hit a revenue plateau when relying solely on attracting new customers or increasing traffic.
Enter one of the most effective and game-changing business strategies: increasing average order value (AOV). You can unlock sustainable growth without constantly seeking new buyers by inspiring your loyal customers to add more value to their carts.
Ready to learn how?
Below, we’ve outlined actionable and proven strategies to help craft businesses boost AOV and grow smarter.
Suggested Items in Cart
When customers add an item to their cart, suggest complementary products they may like. This approach leverages the power of convenience and personalization. For example:
- If someone buys a knitting kit, recommend high-quality yarn or knitting needles.
- For customers purchasing a crafting tool, suggest a storage case or related accessories.
Product recommendation apps or plugins can help automate this process, increasing the chances of a customer adding more to their order. At Stitchcraft Marketing, we can help you add an e-commerce component to your website.
Don’t forget the IRL version of this: project bundles displayed together and goodies showcased at the register.
Free Shipping Thresholds
Free shipping thresholds are a tried-and-true method to increase AOV. Set a minimum spend requirement, such as $75 or $100, to qualify for free shipping. Customers often add items to their cart to meet the threshold, effectively increasing their order value.
To maximize this strategy:
- If you’re new to free shipping, place a thin banner at the top of your website announcing your offer.
- Use pop-up notifications during checkout to remind customers how close they are to free shipping.
- Offer suggestions for small, inexpensive add-ons to help them reach the required amount.
This strategy can also be used for expedited shipping during holiday seasons.
Upsell to Higher-Value Products
Encourage customers to upgrade to premium versions of your offerings. This works well for craft supplies and equipment. For instance:
- Suggest a top-tier sewing machine to someone browsing basic models.
- Highlight the benefits of branded paints over generic ones, such as durability and richer color.
Demonstrating the value and long-term benefits of these upgrades can make customers more willing to invest in higher-priced items.
Answer these questions:
- Do you have a defined process to help customers move from generic to name-brand products?
- Are there features or special services that a higher-value item offers that the lower-value product can’t compete with?
- Do your premium distributors offer specials you can extend to encourage your customers to buy?
Bundling Products
Take the thinking out of the equation for your customers. By bundling similar or complementary products, you make the purchase easy for your shopper. Show them how certain surface patterns or colors work well together, display the skeins for a knitting project alongside a sample of said project, or show how a specific notion or tool is necessary to accomplish a technique.
Bundling is a powerful strategy that encourages customers to purchase multiple items at once. For example:
- Combine a beginner’s crochet kit with an instructional guide and premium yarn.
- Offer a set of themed scrapbooking supplies, including paper, stickers, and embellishments.
Not only do bundles provide value for customers, but they also allow you to sell less popular items alongside bestsellers.
Consider bundling older stock with new inventory at a special price. Price it so you’re receiving a higher return than you would have if you had simply placed the old stock item on clearance. This will also make shoppers feel like they’re getting a special deal.
Gift Cards
Buy-One-Get-One (BOGO) deals, tiered discounts, and other promotions incentivize larger purchases. Consider these ideas:
- BOGO: “Buy one paintbrush set, get the second at 50% off.”
- Buy This, Get That: Offer a free pattern download with the purchase of fabric bundles.
- Buy Now, Spend Later: Encourage customers to purchase gift cards with bonus value, such as “Buy a $50 gift card and receive $10 extra.”
Punch Cards
Punch cards, like those utilized by your local coffee shop, offer a unique alternative for increasing AOV. Provide a punch for every skein or yard purchased, with a gift once a card is fully punched. Or, consider the reverse of the traditional punch card strategy, where a larger purchase up front comes with a card redeemable each month for specific product. We go into detail about this alternative strategy in our blog all about gift card strategies, but here’s the TLDR:
- Each punch accounts for one item each month for 12 months, all at roughly the same value. We suggest in the $10-$25 range and something like yard-of-the-month, pattern of the month, or mini-skein of the month.
- The punch card for the year is purchased upfront, making the card purchase a minimum of $120 per customer.
- Each month, your customer comes in to redeem a punch – or redeems online, without shipping included.
- Include terms that each month is use-it-or-lose-it.
Limited-Time Offers
Create urgency with time-sensitive promotions. Limited-time offers (LTOs) motivate customers to act quickly and increase their order size. Examples include:
- “Spend $50 and get a free holiday-themed crafting kit” during seasonal events.
- “Get 20% off your order when you buy today only.”
These tactics tap into FOMO (fear of missing out) and encourage customers to purchase more and quickly. Whether you promote a product that’s only available for a few days or until you run out, make it known!
Bonus points if you make certain items only available or first available to members of your loyalty program, which is up next.
Loyalty Programs
Loyalty programs reward repeat customers and incentivize larger purchases. Points-based systems, where customers earn points for every dollar spent, are particularly effective. For example:
- Allow customers to redeem points for discounts, exclusive products, or free shipping.
- Provide bonus points for orders above a certain value.
Loyal customers are more likely to spend more, especially when they feel appreciated.
Other loyalty offers to consider:
- Early access to limited-time offers.
- Exclusive events for program members.
- Bonus points for referring friends.
Great Customer Service
Exceptional customer service not only fosters trust but also encourages customers to return and buy more. Focus on:
- Prompt responses to inquiries.
- Offering clear guidance on product use or care.
- Hassle-free returns and exchanges.
Satisfied customers are more likely to place larger orders and recommend your business to others.
Remember, great customer service is about the experience. Listen, follow through, and build trust to keep your clientele coming back, referring friends, and spending more.
Putting It All Together
Increasing the average order value doesn’t require a significant overhaul of your operations. By implementing a combination of these strategies, craft businesses can create a more engaging shopping experience and boost revenue without spending efforts on new traffic. Start small by testing one or two tactics, such as recommending related products or introducing free shipping thresholds. As you see results, layer in other strategies like loyalty programs and limited-time offers.
Every craft business is unique, so adapt these suggestions to fit your specific audience and product offerings. With consistent effort and creativity, you can grow your business sustainably and achieve long-term success.
At Stitchcraft Marketing, we specialize in helping craft businesses thrive. From personalized marketing strategies to actionable insights, we’re here to support your growth. Contact us today to learn how we can help elevate your business to the next level!
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