How to Calculate Your Value Shoppers for Your Ecommerce Store
Just as there are many types of online businesses, there are many types of online customers. Most online retailers will tell you that the most common type of buyer they encounter is the value shopper. A value shopper is someone who is looking for the best possible value for the cost of the product or service. That doesn’t necessarily mean that they are looking for the lowest price, it means that they are focused on the value per dollar they spend.
Why Should You Calculate Your Value Shoppers?
When you are able to identify those customers who are value-sensitive you can employ the right strategies to encourage them to buy more products or more profitable products, which will increase your bottom line. Here are some tactics that may appeal to the value shopper:
While these strategies are efficient for all customers, they are especially useful for value shoppers as they encourage them to spend more, increase their average order value (AOV), and increase your profitability.
How to Calculate Your Value Shoppers
Average order value (AOV) is easy to calculate:
To illustrate this, imagine you sell running shoes. Your total sales for last month were $6,700 and you had 90 sales. $6,700 divided by 90 equals $74, so your AOV was $74.
Easily Find Your Value Shoppers with Glew
To understand the overall profitability of each of your customers, you have to break down your calculations to the customer level. If you have more than just a few customers, you can count on that taking a lot of time and brain power. But when you have the right software solution, the data you need is right at your fingertips, available quickly and easily. Glew offers a full array of ecommerce reporting and analytics that will help you determine just what type of shoppers you have so you can appeal to them specifically.
Let Glew help you make sound business decisions about your product line. Try us for free for 7 days.