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Market Stats
Average Order Value (AOV)
- Bundling products or offering combos can increase AOV by 10-15%.
- Customers are 67% more likely to purchase more items when offered a combo or bundle deal.
Customer Lifetime Value (CLTV)
- Increasing CLTV by 5% can boost profits by 25-95%.
- Repeat customers spend 67% more on average than new customers.
- Retaining customers through personalized recommendations can increase retention rates by up to 15%.
Effectiveness of Personalized Recommendations
- Personalized product recommendations drive 26% of total revenue for e-commerce businesses.
- 45% of online shoppers are more likely to shop on a site that offers personalized recommendations.
Problem Statement
Many businesses struggle to increase their Average Order Value (AOV) and Customer Lifetime Value (CLTV). Implementing strategies that encourage customers to purchase more items per transaction and repeatedly engage with the brand can significantly boost revenue and profitability. Leveraging personalized recommendations through platforms like WhatsApp can help achieve these goals effectively.
Strategies
Showing Combos Post-Purchase to Increase AOV:
- Example: After a customer completes a purchase, send them a message highlighting combos or bundles that complement their purchase.
- Implementation: Use purchase data to trigger automated messages with combo offers, encouraging customers to consider these deals for their next purchase.
Navigate to Flows→ Create Flow→ Give the flow name and description→ Choose the Campaign type→ Create a similar flow as shown in the image below
Navigate to Smart Automation→ Create Smart Automation→ Give the automation name and description→ choose the cohort as shown below
Connect the flow created above to your automation
Sending Multiple Recommendations Post-Purchase to Increase CLTV:
- Example: After purchase, send personalized recommendations for related products to encourage additional purchases over time.
- Implementation: Create a sequence of automated messages that provide product recommendations based on the customer’s purchase history and preferences.
Navigate to Flows→ Create Flow→ Give the flow name and description→ Choose the Campaign type→ Create a similar flow as shown in the Image below
Navigate to Smart Automation→ Create Smart Automation→ Give the automation name and description→ choose the cohort as shown below
Connect the flow created above to your automation
By leveraging personalized recommendations on WhatsApp, businesses can effectively increase their AOV and CLTV. Showing customers combos and bundles post-purchase encourages higher spending on subsequent transactions, while multiple recommendations post-purchase foster repeat purchases and long-term customer loyalty. These strategies help businesses maximize revenue and enhance customer satisfaction.