Raise your average order value with a free gift minimum

Average order value is the total of your orders divided by the number of orders. Raising it means shoppers put a little more in each basket. A free gift at a minimum spend gives them a reason to.

#Know your starting point

Before you change anything, write down your average order value for the last few weeks. You will compare against it later. Use the same length of period each time, because seasons and other promotions also move the number.

Set the minimum for the shopper who is almost there.

#Place the minimum for the shopper who is almost there

A minimum far above what most shoppers spend feels out of reach and gets ignored. A minimum below the average order gives the gift to people who would have spent that much anyway. A minimum a little above your average order is a goal a shopper can reach by adding one more item.

#Check the gift pays for itself

Break even minimum spend is your average order value plus the gift cost divided by your margin. With an average order of 50, a gift costing 5 and a 40 percent margin, that is 62.50. These are example numbers, so put yours in the free calculator at https://taskivator.com/free-gift-threshold-calculator/.

#Pick a gift that feels worthwhile and costs little

• Cheap for you, so the gift is a small share of your margin at the minimum.
• Useful or fun for the shopper, so the gift is noticed.
• Light and easy to pack, which keeps fulfilment simple.

#Tell shoppers about it

A gift nobody knows about changes nothing. A short note near the cart or on product pages saying what the minimum is helps shoppers see the goal.

#Decide what counts toward the minimum

If sale items and discount codes count, a cart can reach the minimum while paying little. Decide whether spend counts before or after discounts and whether sale items count, then test sample carts. More on that: https://taskivator.com/articles/keep-sale-items-out-of-free-gift-threshold-shopify/

#Measure it

1. Record average order value for a period before the offer.
2. Run the offer for a period of the same length.
3. Compare average order value, and count the orders that got the gift and what the gifts cost.

If average order value rose and the gift cost is covered, keep going. If the gift mostly went to carts that would have spent that much anyway, raise the minimum a little. A planning spreadsheet with a before and after tracker is at https://taskivator.com/free-gift-offer-planner-template/.

#Setting up the gift in your store

Giftproof is a Shopify app that adds a free gift to the cart when a shopper reaches your minimum spend, and removes it if they drop below. Giftproof is coming soon.