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Why AOV Alone Won’t Grow Your Brand
Crys A.
March 25, 2025
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Why AOV isn’t the holy grail (but still deserves a spot on your radar)
Stay up to date with all things DTC
Instagram stories are the most underrated CTA tool
Done-for-you social media for ecommerce brands
Latest News: Pinterest shares tips on how to maximize its automated performance+ ads & more…
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Why AOV isn’t the holy grail (but still deserves a spot on your radar)
Let’s talk about AOV. And why everyone’s obsessed with it like it’s the magic solution to their revenue problems.
Don’t get me wrong, AOV’s important. But if you’re only focusing on increasing AOV, you’re basically playing the world’s shortest game. Because here’s the truth:
Higher AOV doesn’t always mean higher profit. Throwing discounts everywhere or bombarding people with upsells isn’t a strategy, it’s a panic move. Sure, your AOV goes up, but your profit margins? Probably tanking. And nobody wants to do all that work for crumbs.
It wrecks the customer experience. If your website feels like an infomercial with offers flying at people from every corner, they’re just gonna click away. If they do buy, they’re buying with the intention of never dealing with you again. Great for short-term cash, terrible for everything else.
It doesn’t build loyalty. Someone spending $200 once and vanishing isn’t worth half as much as someone spending $50 three times in the span of a few months. If all you care about is AOV, you’re probably ignoring the most important part — getting them to come back. That’s where the Customer Lifetime Value (CLTV) magic happens.
But here’s the thing... AOV still matters. You just gotta stop looking at it like it’s the finish line. Instead, it’s just a piece of the bigger puzzle that’s called CLTV growth.
Here’s how you actually make AOV work:
Use AOV to boost CLTV. Simple math. The higher your AOV, the better your margins when it comes to paid ads (shoutout to Sai) and your retention efforts. But that only matters if those customers keep coming back. So, your end goal? Make sure that higher AOV experience feels good enough to make them want to buy again.
Offer Smart Upsells & Bundles. Nobody likes feeling pushed. If your upsell or bundle makes sense — like offering extra coffee pods to someone buying a coffee machine — it feels helpful. But if you’re pushing socks to someone buying protein powder, then you’re just being annoying.
Free Shipping Thresholds Still Work. This trick’s been around forever, but it works because it feels like a reward, not an upsell. “Spend ₹100 more for free shipping” makes people think, “Eh, might as well grab something else.” Easy win.
Make Your Offers Personal. Nobody likes feeling like a number on your email list. If you’re gonna hit them with a post purchase offer, make it relevant. “Hey, you got X last month, this Y would go perfect with it.” That’s the difference between annoying spam and a legit helpful suggestion.
AOV isn’t the holy grail. It’s just a tool you use to grow something much bigger — your CLTV. Get that part right, and your emails will start converting like crazy.
Lastly, if you’re wondering how AOV fits in the equation along with the CLTV, here you go:
Average Order Value x Purchase Frequency = CLTV Growth
Alright folks, that’s it for today! Want me to break down more topics like this? Reply to this email with your suggestions, and let me know!
-Ibrahim
Instagram stories are the most underrated CTA tool
Most brands sleep on Instagram Stories, focusing only on their feed. But once you start using them the right way, there’s no going back. Stories let you connect with your audience like a friend while sending them exactly where you want them to go.
Here are a few brands doing it in a super straightforward way and you can, too, without changing your whole strategy:
1. Create an Inspo Moment
Amazon uses Stories to make inspo boards for home decor, organization, and styling. And the best part? They sneak in links that take you right to the product page without making it feel “salesy.”
2. No One Ever Says No to a Sale
Sure, you can post about a sale and tell people to check the link in the bio. But you know what works better? Creating hype in Stories and adding a tap-to-buy link so they don’t have to leave the app. Target does this all the time, keeping their audience engaged like they’re part of an exclusive club, dropping deals straight into their Stories.
3. Announcements That Actually Drive Action
People love knowing what’s new and what’s back in stock, so make it easy for them to shop right from Stories. Crumbl Cookies nails this, they show their featured cookie of the week and link straight to their order page. No extra steps, no friction.
Best Practices for Using Instagram Stories
✨ Use countdown stickers for product launches—builds up excitement.
✨ Post often—Stories keep your brand top-of-mind.
✨ Keep your wording quick and easy—people decide in seconds!
Try these, and you’ll never ignore Stories again.
👀Until next time.
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📰 In the news
Pinterest introduced Performance+, an automated ad solution that optimizes creative, targeting, and bidding to maximize conversions. Early results show a 10% increase in sales and a 15% lower cost per action. DTC brands can leverage Performance+ to streamline ad management, improve ROI, and drive higher conversions with minimal effort.
Top YouTube creators are meeting with CMOs during upfronts to showcase their influence and secure brand deals. Creators now play a bigger role in shaping advertising strategies, with brands recognizing the value of partnering with trusted digital voices. DTC brands can tap into these partnerships to boost credibility, drive authentic engagement, and stay ahead in influencer-driven marketing.
Have any questions that you need help with?
Ask here - look out for Friday’s issue where Ibrahim will answer them.