3 tactics to increase average percent profit margin. Now that we’ve dough Oh so deep into increasing average order value. An average number of orders. I am thrilled to review the final category of how to maximize customer lifetime value by breaking down three tactics to increase average percent profit margin.
Are you ready. So ready Andrew. Thank you. The three tactics to increase average percent profit margin in your Shopify or Shopify plus store are discount based on customer lifetime value. Focus on highest margin products and elevate your brand.
First up discount based on customer lifetime value. This example is one of my favorites in which discounts are varied based on customer lifetime value in a way that you may not expect as you can see through the visual. We have three identical creatives each with a different percentage off offer
varying from 5% to 10% where high CLT customers receive a 5% discount medium CLT customers receive a 7% discount in non purchasers receive a 10% discount. What this does is it actually encourages the first conversion with all the might.
We can offer while mitigating customer lifetime value profit margin by separating discount tiers by cohorts. The second tactic is focusing your marketing efforts on your most premium or highest profit margin products or product bundles. As you can see from each of these three examples.
While all of these products are available in smaller quantities the highlight and focuses on promoting the products or product bundles that can yield the highest percentage profit margin while also aiming for a higher average order value. And the third tactic for increasing average percent
profit margin is perhaps the most obscure but equally significant elevate your brand. It’s true that the cream always rises to the top in a premium brand attracts higher margins lower returns and oftentimes more satisfied customers
when considering a brand redesign and reinvigoration think premium when communicating with your audience. Align values by being aspirational indoctrinate your customers into your mission and vision and show customer happiness authentically and often and that after much ado
sums up our three tactics for increasing average percent profit margin. Whether by discounting based on customer lifetime value focusing on premium high margin entry point products and promotions or by elevating your brand to aspirational standards. With this information, you are well-positioned to tackle
increasing your profit margin one step at a time. And I’m excited to recap for you.