If your sales conversion rate drastically increases, but your average order value declines, what *specifictype of promotion should you consider implementing?

If your sales conversion rate drastically increases, but your average order value declines, you should consider implementing a *'volume pricing' promotion or an 'order discount' promotion with a minimum purchase threshold. A volume pricing promotion offers discounts based on the *quantityof items purchased. For example, 'Buy 2, Get 10% Off' or 'Buy 3 or More, Get 15% Off.' This incentivizes buyers to purchase multiple items in a single order, increasing the overall order value. An order discount promotion provides a discount on the entire order total when the buyer reaches a certain spending threshold. For example, 'Get 5% Off Orders Over $50' or 'Free Shipping on Orders Over $75.' This encourages buyers to add more items to their cart to qualify for the discount, boosting the average order value. The reason these promotions are effective is they directly address the issue of declining average order value. While the increased conversion rate indicates that buyers are more likely to make a purchase, they are spending less per transaction. By offering discounts based on quantity or order total, you encourage buyers to consolidate their purchases and increase their spending, thereby offsetting the decline in average order value and improving overall profitability. The promotion should be carefully structured to ensure profitability. For instance, the discount percentage should be set to maintain a healthy profit margin, even with the increased order volume. Analyzing product affinities (which items are frequently bought together) can help to create targeted volume pricing promotions that maximize sales without sacrificing profitability. A simple percentage discount may not solve the issue since someone might buy one expensive item and a cheap item to get the discount. It's more effective when there's a quantity or spend threshold.