How to Increase Average Order Value and Grow Your Business
- Dr. Giovanni Calise
- Aug 29
- 4 min read
Updated: Sep 2
Why Increasing Average Order Value is a Growth Multiplier
Every entrepreneur dreams of scaling revenue, but too often the focus stays locked on chasing new customers. The truth? The fastest way to grow isn’t always through acquisition—it’s through extraction. When you can get each customer to spend more every time they buy, your growth multiplies without ballooning your marketing costs.
That’s the essence of learning how to increase average order value (AOV). It’s about maximizing the opportunity in front of you, deepening the value of every transaction, and turning every checkout into a bigger win for your customer and your business.
As Proverbs 13:11 reminds us: “Wealth gained hastily will dwindle, but whoever gathers little by little will increase it.”Growth doesn’t come from shortcuts—it comes from consistent strategies like boosting order value over time.
Let’s explore four proven plays to increase average order value and scale your business strategically.
Bundling High-Margin Items: Make Bigger Feel Better
One of the oldest and most effective ways to increase average order value is bundling. This strategy combines products into a package that feels like a better deal to the customer while raising the overall ticket size for you.
Think of McDonald’s value meals—an entrée, fries, and a drink cost more together, yet customers perceive value and convenience. The same works for suits with shirts and ties, or cosmetics kits combining multiple products.
The secret? Bundle high-margin items. Don’t just sell the main product—add accessories or add-ons that significantly improve profitability. Apple is a master of this, pairing MacBooks with cases, AirPods, or software subscriptions.
👉 Bundling works because it simplifies decision-making and amplifies perceived value. Customers walk away happy, and your bottom line grows.
Cross-Selling at Checkout: The Power of “Would You Like Fries with That?”
Cross-selling at checkout is legendary because it works. From Amazon’s “frequently bought together” suggestions to a cashier asking, “Would you like fries with that?”—this tactic adds incremental revenue in the moment of decision.
Relevance is everything. Customers don’t want random upsells, but they love helpful suggestions that improve their purchase. A belt with pants. Batteries with electronics. A lipstick shade that complements the foundation in the cart.
Amazon has built an empire on cross-selling, with algorithms that surface the perfect add-on. Even small businesses can mimic this at checkout—whether online or in-store.
👉 Cross-sell opportunities are everywhere; the key is positioning them as relevant enhancements, not pushy add-ons.
Tiered Pricing: Turn Small Upgrades into Big Wins
Sometimes, increasing average order value isn’t about adding more products—it’s about encouraging customers to upgrade their purchase.
This is where tiered pricing shines. Offer low-friction, high-relevance add-ons that feel like a no-brainer. For example:
AppleCare with an iPhone
Cheesy bread with a pizza
Sephora checkout minis
Premium packaging upgrades
These small add-ons often have massive margins, and studies show nearly 50% of customers say “yes” to impulse upgrades when they’re relevant.
👉 Tiered pricing works best when the upsell feels effortless—like a natural extension of the original purchase.
Threshold Incentives: Unlocking Bigger Baskets
The final strategy is about psychology: threshold incentives.
Ever spent a little extra just to unlock free shipping? That’s a threshold incentive. The idea is simple: give customers a target to hit, and they’ll often spend more than planned to avoid missing the reward.
Examples include:
Kohl’s Cash ($10 for every $50 spent)
Uber Eats discounts if you spend $25+
GNC’s free shipping over $59
Threshold incentives create urgency and a sense of winning. Customers rationalize the extra spend as a smart choice, while businesses win with higher average order values.
👉 The genius of threshold incentives is that they motivate bigger baskets without feeling forced. Both sides walk away satisfied.
Conclusion: AOV is the Growth Engine Hiding in Plain Sight
Entrepreneurs often look outward for growth—new customers, new markets, new channels. But the real power play is looking inward, at your existing buyers, and asking: how can I get each one to spend more every time they shop?
By bundling strategically, cross-selling at the right moment, designing tiered upgrades, and leveraging threshold incentives, you unlock the compounding effect of increased average order value.
This is the growth multiplier most businesses overlook. It’s not about squeezing customers—it’s about delivering smarter value, creating better experiences, and helping customers feel like they’re getting more while you grow stronger.
Increase average order value, and you’ll discover growth isn’t luck—it’s strategy.
Gaining Market Share Series
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