Boosting the Average Order Value (AOV) is a profit powerhouse for Meta ad campaigns on Shopify. When customers spend more per order, your revenue goes up without the hassle of constantly hunting for new customers. It’s cheaper and easier to get your current customers to buy a bit more than to find new ones. 

Plus, when you increase the AOV, you’re also increasing the Customer Lifetime Value (CLTV), meaning your Shopify customers will keep coming back and spending more over time.

But, how will you increase the AOV of your Shopify customers? Right now, marketers are stuck with the basic purchase events that Shopify CAPI offers. 

These standard event optimization just don’t cut it, leaving performance marketers without the custom conversion events they need based on things like AOV, category, and other important metrics for experimenting and optimizing.

Don’t stress out!

In this blog, I’ll walk you through a powerful proven strategy “custom conversion event optimization” to optimize your Shopify Meta ads for higher AOV purchases. 

First, let’s quickly define the Average Order Value

Average Order Value (AOV) is the average amount your customers spend per order on your site. It’s a handy metric for understanding your customers’ spending habits. 

The thing is, even if your Shopify store has good traffic and high conversion rates, a low AOV means bad for you because high-AOV purchases are the ones that can increase your revenue.

Why optimize your Meta ads for high-Average Order Value purchases?

Here are 2 different scenarios to show why you must optimize your Meta ad campaign for high-AOV purchases.

Scenario 1 – Where you didn’t optimize Meta ads for high-AOV purchases

Let’s say you spend $1,000 on Meta ads and bring in 50 new customers, each with an average order value (AOV) of $30, resulting in $1,500 in revenue. 

At first glance, this looks like a win. But when you dig deeper, things might not be so rosy. 

After the $1,000 ad spend, you have $500 left over. However, once you factor in other costs like product expenses, shipping, and overhead, that $500 can quickly vanish. If these costs add up to more than the $500 cushion, you’re not just breaking even; you’re actually losing money. 

Scenario 2 – Where you optimized Meta ads for high-AOV purchases

Let’s say you spend the same $1,000 on Meta ads and bring in 50 new customers, each with an average order value (AOV) of $30, resulting in $1,500 in revenue.

Now, if you optimize your Meta ad campaigns for high-AOV purchases and increase the AOV to $50, the same $1,000 spend would generate $2,500 in revenue from 50 customers.

This significant increase in AOV not only boosts profitability but also provides more flexibility to reinvest in your business growth.

Now comes the real question. How can one increase their high-AOV purchases?

The easiest way to boost high-AOV purchases for your Shopify store

Introducing custom conversion event optimization!

If you’re a Shopify marketer still relying on standard conversion events and default Conversions API (CAPI) to optimize your Meta ad campaigns, you’re missing out on significant growth potential. We’re excited to unveil a game-changing strategy—synthetic event optimization, also known as custom conversion event optimization.

This approach allows you to elevate your Meta ad campaigns for your Shopify store with a powerful CAPI connection, taking your business to the next level. Custom conversion optimization means tailoring your Meta ad campaigns to focus on unique, high-value actions that matter most to your business, such as high AOV purchases or specific product category buys. It’s time to move beyond the basics and achieve better results with precision.

Beat the Shopify CAPI limitations using CustomerLabs

For every Shopify marketer, achieving high-AOV purchases is a make-or-break factor, and custom conversion event optimization makes it possible.

With CustomerLabs, you can create synthetic events tailored to your marketing goals and seamlessly send them to Meta. This is the most effective and straightforward way to optimize your Meta ad campaigns for Shopify and drive high-value conversions.

To start, first, you need to differentiate between high-AOV and low-AOV purchases in your Shopify store. By doing quantile analysis you can easily identify which purchases fall into high-AOV and middle-AOV categories. 

Now, if you want to get more high-AOV purchases you can use CustomerLabs to create a custom conversion event focused on high-AOV purchases and sync it with Meta. This will optimize your Meta ad campaigns to target and drive more high-AOV purchases, helping you achieve exceptional results from your Meta ads for your Shopify store.

How does custom conversion event optimization work?

Meta’s ad algorithm learns and optimizes based on the conversion data you provide. If you stick with the standard events, Meta will train its algorithm to focus only on those generic actions, resulting in the same predictable outcomes you’ve always seen.

However, by implementing custom conversion events tailored to your specific business needs, you can direct Meta to train its algorithm on data that truly matters to you i.e., high-AOV purchases. This means your Meta ad campaigns will be optimized for actions that drive higher value, enabling you to target customers who are more likely to convert and ultimately boost your revenue.

Plus, Meta’s ad algorithm is a sophisticated machine learning system that requires training to understand the specific types of purchases a business targets. By analyzing user behavior, Meta can predict the return on ad spend (ROAS) for each user, thereby enhancing campaign performance and conversion rates.

Just as we optimize for default purchase events, focusing on high average order value purchases helps the algorithm attract more relevant users. This approach can potentially double the incremental revenue ROAS compared to solely focusing on the number of conversions.

Bottom line

Boosting your Average Order Value (AOV) can seriously ramp up your Shopify store’s profitability, and optimizing your Meta ads is the best way to do it. By focusing on custom conversion events that zero in on high-value purchases, you’re not just throwing more money at ads but making every ad dollar count. 

So, go ahead and give the custom conversion event optimization strategy a shot!