This Simple Offer Can Add A Couple Dollars to Your AOV
Hey I’m Shane, welcome to another issue of The CRO Weekly where each week I explore how to build a high converting Ecommerce store. If you’re not subscribed you join 1269(!) people that are right here:
If you’re like most brands, dealing with lost or damaged packages is a major headache.
99% of the time it’s not worth trying to investigate. Instead, the cheaper solution is to just send the customer a new package.
In a sense, you’re providing your customers a service — shipping insurance — free of charge.
But why? Why not charge customers for this service?
A client of mine decided they wanted to try it, so we set up a new product “Shipping Insurance” priced it at $2.99, and offered it to customers in the cart.
But, we did one thing different from your typical upsell offer. Instead of presenting it like normal offer:
We decided to make it a simple checkbox. If it was checked, the product would automatically be added to your cart when you hit the check out button:
Aside from that, there was one crucial decision we made…
Opting in vs opting out
In countries like Australia, organ donation rates are as high as 90%. In the U.S, rates are as low as 15%.
No, it’s not because Americans are any more selfish than Australians. The only difference is that in the U.S organ donation is an opt-in system, whereas in Australia it is an opt-out system.
Opt-in = the box “do you want to be an organ donor” is not checked by default
Opt-out = the box is checked by default
This one small change results in 6x more organ donors — pretty crazy right?
Knowing this, we decided to making our shipping insurance an ‘opt-out’ offer meaning it would be checked by default.
When you think through the psychology of this it is pretty compelling. Are you really going to turn off the shipping insurance that’s only $2.99? What if your $100 package does get lost and you aren’t covered because you wouldn’t spend a few bucks.
We figured most people would decide to just go ahead with it, and we were right.
Shipping insurance is now the top sold product on the store every day with over 50% of orders including it.
That’s all for this week’s issue. If you want to add a shipping insurance checkbox to your store a developer can build it in a couple of hours. If you’d rather not hire someone, then you can use the app Route to get this feature. In my opinion you don’t need an app since you’re already subsidizing the cost of lost packages but it’s not a bad option.
Hope you have a great weekend!