#everything-marketing
Thread
We sell a consumable product where customers typically reorder within 45-60 days. Our CPA is within our target range, but new customer AOV is lower than we'd like. New customer ROAS is 2.2-2.5 and our target is 3.
We have in cart upsells and gift tiers to encourage higher AOV.
What else would you do to increase new customer AOV?
Hey @Srini Ranganathan!
New customer AOV? These are pretty much all of your options:
• Increase price
• Quantity breaks
• Upsells / cross sells / bundles
• Free shipping threshold
• Subscription
• Post purchase upsell (AfterSell app)
Post Purchase Upsell is massively slept on…
Customers are more likely to make a second purchase immediately after buying something.
Everything else you do in your funnel influences whether or not a new customer will take action on the above.
Your copywriting, offer timing, positioning, etc.
Now…
Existing customers…
Klaviyo’s “Expected Date of Order” feature is unreal — if you aren’t using it check it out.
You can set up flows to present high AOV bundle offers triggered around when Klaviyo expects them to place another order.
From there it’s always worth have a Post Purchase Flow set up with offers.
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You might already be doing most of the above but let me know if you have any Qs!
Awesome answer!!
Thanks Alex! We don't do any post purchase upsells or use klaviyo like that.
Will test them out, thanks! 🙏
Will share with our team and post back updates to this thread
@Oscar Lora
Awesome would love to hear updates — DM anytime! @Srini Ranganathan
Do we think there's a trifecta type thing. You know like AOV, CAC, ROAS and you can only have any 2?
Or am I just making it up
You may want to make offers that motivate people to buy more. We created a few examples from upsell offers from other brands here: . Hope this helps.
@Srini Ranganathan
Most important is LTV
“The business that can spend the most to acquire a customer wins”
— Dan Kennedy
Too many businesses focus on buying a customer to win a sale
Your goal is to buy a sale to win a customer
As long as LTV > CAC then you are good
You want LTV to exceed CAC as much as possible
Optimize Retention, AOV, and COGS until LTV exceeds CAC
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Upon achieving economy of scale, you will effectively have AOV, CAC and ROAS in a solid place
But these are only metrics that paint a story about yesterday
- Determine target CPA
- When exceeding target CPA, scale spend
- When not meeting target CPA, test inputs until you exceed (i.e. creative, copy) Lmk if this helps! 🙂
Are you using affiliate or programmatic/native at all?