Effortlessly Scale Your Revenue With This Tactic

Hello Founders & Funders,

We’ve all been there.

Ordering a simple meal, only to be tempted by the suggestion to “make it a combo.”

Before you know it, your modest lunch has grown into a full meal deal, complete with fries and a drink…

Or even worse, you’ve upsized it to a LARGE (because you really needed 2 cups of oily fries and a half-gallon of diet Coke.)

This clever upsell isn’t just a fast-food tactic…

It’s a perfect example of how increasing Average Order Value (AOV) can effortlessly scale revenue.

You might think that every marketer understand the AOV concept by now… but you’d be wrong.

It’s shocking how many offers are out there completely missing opportunities for a quick upsell.

Let’s explore a few examples of how this principle plays out in more everyday situations and how you can apply it in your growth strategies…

• Extended Warranties: When buying electronics, do you get that extended warranty at checkout? It’s not just peace of mind, it’s an easy way for retailers to increase your purchase value without much effort. The same concept can be applied to any service-based business.

• Free Shipping Thresholds: Many e-commerce sites offer free shipping if you spend a certain amount, say $50 or $100. Customers often add a few extra items to their cart to reach that threshold, thereby increasing their total spend. It’s a simple incentive whose cost is more than offset through higher revenue growth.

• Subscription Discounts: Ever notice how you get a discount for signing up for a year’s worth of something rather than paying monthly? This tactic not only locks in longer-term revenue but also bumps up the immediate transaction value.

• Loyalty Programs: Are you old enough to remember the  “S&H Green Stamps Catalogs?” It was one of the OG loyalty programs. Stores often offer extra points or discounts if you buy certain items or larger sizes. It’s a nudge that increases the total amount spent per visit—an AOV strategy in action that encourages repeat business.

• Buy One, Get One (BOGO) Deals: Encouraging customers to buy more with promotions like "Buy one, get one 50% off" on items like clothing or shoes. Most of us don’t really need two of something, but we can’t resist a “great deal”.

• Premium Delivery Options: E-commerce sites offering faster or same-day delivery for an additional charge, encouraging customers to spend more for convenience.

• Membership Perks: Ever been to the Admiral’s Club before your flight?  Businesses offer premium memberships with added benefits, like access to exclusive classes or facilities, driving up the average membership value.

 When it comes to increasing AOV, there are literally hundreds of options…

It just comes down to figuring out the best fit for your business and the most attractive “can’t say no” offer for your customers.

The Final Word

It’s a simple scaling question…

Think about your own business or your clients’ businesses and ask yourself this:

How can you introduce similar, simple strategies to increase AOV?

Whether it’s through bundling services, offering premium options, or encouraging longer-term commitments, these small changes can make a massive impact.

Let’s say you have a $100 product and offer a $200 upsell.

Even if only 5% of your customers take that upsell, it adds $10 of AOV per transaction, a quick 10% bump in revenue!

So, if you haven’t applied this strategy yet…

What simple tweak could you implement today to start scaling your business more effectively through AOV?

David & Chris

P.S. Today’s issue was co-written with Chris Muccio, a growth marketing strategist who will be a frequent contributor to Boardspire. Keep an eye out for more insights from us both on scaling and M&A moving forward.

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