Doing less and earning more: AI for higher AOV in ecommerce

It’s 2020. Artificial Intelligence (AI) is around us everywhere we go. To not take advantage of it is to miss out on a huge opportunity – to improve user experience by tailoring unique, personalized interactions for your website visitors.

Personalization is one of the most important optimizations you can make on your ecommerce website in 2020: 65% of users said they were motivated to be loyal by receiving personalized offers and 61% by personalized product recommendations. That could be over half of your total prospective customers. The numbers don’t lie – there’s no reason not to personalize your user’s experience. And it’s never been easier than with Commerce AI.

What does AI-enhanced user personalization mean for your ecommerce website? Dramatic improvements for your Average Order Value (AOV) among users without any hard work.

For reference, AOV is the average amount each customer spends per single transaction in your store. Or, it tells you how much revenue each order brings in.

To calculate your AOV, use this simple formula:

Average Order Value = Total Revenue / Number of Orders

For example, imagine if 50% of your customers increased their AOV by 25% – for simplicity, let’s say that is an additional $25 on a $100 order. If you had 1,000 customers and 500 of them purchased an additional $25 worth of goods, that’s an additional $12,500 in revenue. Now scale that to your current business and imagine the possibilities.

The bottom line? Dramatically improve AOV through advanced personalization and relevancy on your ecommerce website.

Commerce AI, Justuno’s suite of AI-powered products, helps retailers create more powerful and personalized product recommendations. By syncing your product inventory with intelligent visitor profiles, Commerce AI can create hyper-specific targeted promotions designed to increase conversions and encourage higher order values with minimal oversight – i.e. let the AI do the heavy lifting while you sit back and optimize.

Combining the power of AI with the age-old tactics of upselling and cross-selling leads to incredible results. The increased personalization and relevancy of products to your customers translates into a personal touch – and that’s something everyone appreciates. 74% of customers feel frustrated when website content is not personalized. Instead of a last-second sales gimmick, an actually relevant and useful upsell or cross-sell will drive conversions through the roof and improve your AOV dramatically. Let’s dive into the ‘how’ below.

Improving your AOV

According to BigCommerce, customer acquisition cost (CAC) is up across the board for both B2B and B2C businesses. In fact, research shows that it has increased by nearly 50% over the last five years. It can cost prohibitive amounts of money, time, and effort just getting users to your site – so you should spend the time and money (albeit less) making sure they stay on the site and spend more.

How can a merchant make an individual customer purchase more during their session? Without a proper strategy in place, it’s unlikely visitors will purchase anything beyond what they were originally looking for. What your customers need, then, is a reason or incentive to both stay on your site and purchase more – i.e. increase their AOV.

For example, visitors may lack the incentive to purchase more than one item because the other products shown to them are unrelated and not relevant to what they want.

Or, relevant products are shown to them, but the price is simply too high to justify adding it to their current order.

Lastly, shipping costs are known to cause a substantial proportion of abandoned carts. However, you don’t want to offer free shipping on orders where the logistics aren’t justified.

Enter Commerce AI: Intelligent product recommendations at the right time.

Choosing your Fighter style

With Commerce AI, you can choose from five base algorithm settings: upselling, cross-selling, most viewed or purchased products, and previously viewed. Using filters, you can customize your promotion even further by showing only the specific products you want to show customers. Here’s what these mean for your customers:

  • Upselling — The upselling algorithm suggests products based on an equal or more expensive item that similar customers bought.
  • Cross-Selling — The cross-selling algorithm suggests complementary or related products commonly bought alongside the currently viewed product across all product categories.
  • Recently Viewed — The recently viewed algorithm suggests products that you’ve already looked at and/or indicated a legitimate interest in.
  • Most Viewed — The most viewed algorithm considers all products in your store’s inventory and displays the most viewed items.
  • Most Purchased — The most purchased algorithm displays items that were ordered the most out of all of your store’s products.

Upselling and cross-selling are tried-and-true tactics that are augmented with the addition of increased relevancy and personalization, but what about some classic social proofing? Just because we’re in a digital space doesn’t mean we’re any less keen to look at what others are doing – quite the contrary, actually!

Using the most viewed or most purchased algorithm quickly informs a customer about other customers’ behavior, which does two immediate things:

  1. Makes it clear that other people are, in fact, using and buying products from this website (free customer trust!)
  2. We’re social creatures and often buy things purely because they’re popular – being in a digital space doesn’t change that! If other people are buying it, it must be good, right?

For those wanting to target returning visitors, a recently viewed algorithm is a great way to remind shoppers of what they’ve previously considered (which must have been for a good reason, because it was their choice, and they always make the right decisions for themselves) and encourage them to reconsider and convert.

Filters and honing in

After selecting a base algorithm, use filters to refine your recommendations based on particular product attributes such as brand, price, inventory, or category. Filters are a great way to add or narrow recommendations since it’s often just as important to define what not to recommend as it is what to include.

Further, timing is a key element when it comes to promotions – AI-powered upsells and cross-sells are no different here. You want to show relevant, intelligent recommendations to shoppers at exactly the right time in their shopping adventure. If it’s too early, you risk losing them entirely; too late, and you get a less-than-ideal cart value.

A perfect example of this would be Justuno customer and jewelry retailer Bryan Anthonys, who uses Commerce AI to present a later stage cross-sell promotion designed for a last-minute boost in cart value. Their cross-sell promotion triggers in the cart and throughout the checkout process while appearing native to the page. This engages shoppers as they move toward purchasing and encourages them to add related products they may not have considered before. Compared with a standard email opt-in popover with a discount, the brand’s cross-sell promotion had a 137% lift in engaged conversions.

AI-based upsells and cross-sells take your site experience to the next level by curating a shopping experience that all visitors want, with minimal effort on your part. Artificial intelligence elevates your onsite conversion strategy through thoughtful automation so you can focus on the big picture.

Bottom line: Do less, earn more

Artificial Intelligence is the way of the future. It exists to make things inherently easier: it thinks, so we don’t have to. AI can track, compile, and utilize more data at once to increase relevance and personalization for your users creating a dramatic improvement in both customer satisfaction and average order value.

Driving potential customers can, and often does, cost exorbitant amounts of money, time, and effort. Leverage AI to squeeze more ROI out of your paid efforts and/or convert more organic traffic.

dotdigital customers can take advantage of the powerful integration with Justuno to supercharge personalization. Build your dotdigital lists and segments quickly with Justuno, then create personalized email campaigns within dotdigital. Once users click through an email, unleash Commerce AI to show them relevant products based on what you already know about them!


Commerce AI is available to Justuno Plus users and it’s easier than ever to get started. Interested in Commerce AI but not sure about your strategy? All Justuno Plus customers receive an account strategist to help them build and implement an effective method using Commerce AI. Don’t hesitate and start taking your onsite conversion strategy to the next level today with Justuno and dotdigital.

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