How Javy Increased Their AOV

One of the quickest ways to scale?

Have your customers spend more.

Here's a clever strategy Javy uses to juice AOV and crush the competition: pic.twitter.com/4y7wky6S0Y

— Philip Pages | w6 (@philip_pages) April 6, 2023

What's the sauce? Free gifts.

It sounds simple, but there's a lot going on under the surface.

Here's what Javy is doing differently:

— Philip Pages | w6 (@philip_pages) April 6, 2023

1) Incentivizes customers to spend more through gamification

Javy uses the following rewards structure:

1-2 bottles = Recipe book
3 bottles = Recipe book + straws
4 bottles = Recipe book + straws + mystery gift pic.twitter.com/rZUmUODlqu

— Philip Pages | w6 (@philip_pages) April 6, 2023

As the customer spends more, they unlock more value.

But the gifts aren't just random items.

They are things that a coffee drinker would reasonably use and want.

— Philip Pages | w6 (@philip_pages) April 6, 2023

The mystery gift at the end is particularly juicy.

Surprises hack into our brain's dopamine systems.

Offering a mystery item helps make customers that much more excited about their order and increases the probability of conversion.

— Philip Pages | w6 (@philip_pages) April 6, 2023

2) Decrease per unit pricing with more volume

In addition to free gifts, Javy sweetens the deal by offering discount pricing

1 bottle = $18.95/ea
2 bottles = $16.95/ea
3 bottles = $14.95/ea
4 bottles = $12.55/ea pic.twitter.com/C9ZZfZXZQO

— Philip Pages | w6 (@philip_pages) April 6, 2023

Between the gifts and cheaper unit pricing, this offer becomes a no-brainer.

Why would anyone choose to spend more for less?

The answer: they wouldn't.

Javy has made it so someone would feel guilty for not opting in for the most expensive option.

— Philip Pages | w6 (@philip_pages) April 6, 2023

3) Recurring subscription revenue

Here's the real beauty of this strategy.

This amazing deal is built on a subscription product.

Once the customer opts into the no-brainer 4-bottle + 3 gifts offer, they are charged month after month.

— Philip Pages | w6 (@philip_pages) April 6, 2023

It's possible Javy loses money on their first acquisition.

But if their retention is high enough, they can afford it because they'll break even in X months.

Then everything after that is gravy (Side note, this is how SaaS acquisition works).

— Philip Pages | w6 (@philip_pages) April 6, 2023

All the hard work was done on the front end crafting and testing the offer.

Once someone subscribes, Javy doesn't have to deploy as many resources to retention efforts.

This extra budget can then be allocated back to ads.

— Philip Pages | w6 (@philip_pages) April 6, 2023

They've essentially built a monster scaling flywheel:

Great subscription offer = High AOV + High conversion rate + High LTV = Ability to spend more on ads

More customers see the offer and convert and the cycle continues.

— Philip Pages | w6 (@philip_pages) April 6, 2023

The gifts are core to why this offer works and helps them achieve this flywheel effect.

Pricing alone wouldn't be as exciting of an incentive.

However: pricing + fun gifts = magic.

— Philip Pages | w6 (@philip_pages) April 6, 2023