Why Online Orders Generate 23% More Revenue for your business
Author: Alessandro Mancini
The rise of e-commerce and online ordering has reshaped how businesses interact with customers and has proven to be a lucrative avenue for companies across various industries. According to Shopify, online shoppers spend 23% more per order than in-store customers. This statistic reveals a significant trend in consumer behaviour, with online platforms offering various incentives and conveniences that drive higher spending.
For businesses, especially those in the food and beverage industry, this insight is vital. Restaurants and eateries, including pizzerias, can benefit immensely by embracing online ordering systems to boost both their sales and customer engagement. In this article, we’ll explore why online shoppers tend to spend more and how this can have a positive financial impact on a pizzeria business.
The Pizzeria Example: How Online Ordering Boosts Sales
Let's look at a local pizzeria called Pizzeria Bella, a family-owned restaurant that has been serving the community for several years. The pizzeria has a loyal customer base but has faced challenges in increasing its average order value in-store. To overcome this, Pizzeria Bella decided to implement an online ordering system, aiming to boost their sales and tap into the growing trend of digital ordering.
Before Implementing Online Ordering:
- Pizzeria Bella primarily relied on in-store customers who typically ordered pizza, drinks, and perhaps a dessert.
- On average, the in-store order value per customer was $25. This amount included one pizza, a drink, and a dessert or side dish, but it was often constrained by in-store interaction time.
- The pizzeria experienced long wait times during busy hours, especially on weekends, which sometimes discouraged customers from adding extra items to their orders.
After Implementing Online Ordering:
- Pizzeria Bella introduced an online ordering system through their website and a mobile app. The system allowed customers to place orders ahead of time for delivery or pick-up.
- The online system featured upselling options, such as suggesting a larger pizza for just a few dollars more, or recommending a combo meal that included a pizza, wings, and a drink.
- The pizzeria also implemented targeted promotions for online orders, such as "Free Garlic Knots with Orders Over $30" and "10% Off Your First Online Order."
Post-Implementation Results:
- Increase in Average Order Value: After launching the online ordering system, Pizzeria Bella saw an immediate 23% increase in average order value, in line with the Shopify statistic. The average online order value increased from $25 to $30.75 per order.
- Higher Spending Per Customer: Customers who ordered online were more likely to add extra items to their orders compared to those who dined in. For example, many customers added appetizers, desserts, or even extra toppings to their pizzas when ordering online.
- Better Promotion Utilization: The free garlic knots promotion and the 10% discount for first-time online users encouraged customers to spend a little more to take advantage of these deals. Customers often found themselves spending a bit extra to qualify for a freebie or to get a discount on a larger meal.
- More Orders During Off-Peak Hours: The online ordering system made it easier for customers to place orders during off-peak hours, which helped Pizzeria Bella increase sales outside the typical lunchtime and dinner rush periods.
- Efficient Upselling: The system’s ability to suggest add-ons, like larger pizzas or combo meals, led to an upsell rate of about 15%, with customers frequently upgrading to premium menu items like extra-large pizzas or bundles that included drinks and sides.
Financial Impact on Pizzeria Bella
With the online ordering system in place, Pizzeria Bella experienced significant financial growth. Here's a breakdown of the financial impact based on the 23% increase in average order value:
Before the Online System:
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Average Order Value: $25
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Monthly Orders: 2,000 orders
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Monthly Revenue: 2,000 x $25 = $50,000
After the Online System:
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Average Order Value: $30.75
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Monthly Orders: 2,000 orders (no change in volume)
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Monthly Revenue: 2,000 x $30.75 = $61,500
Increased Revenue:
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The increase in order value has resulted in an additional $11,500 in monthly revenue, representing a 23% increase in sales.
Annual Impact:
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The yearly impact would be $11,500 x 12 = $138,000 in additional revenue for Pizzeria Bella, just from the implementation of the online ordering system.
Conclusion: The Power of Online Ordering for Pizzerias
The case of Pizzeria Bella proves just how impactful online ordering can be driving a 23% increase in average order value and unlocking over $138,000 in additional revenue annually. But this kind of growth doesn’t happen by chance. It happens with the right tools.
SeeMyApps offers the simplest and smartest way to launch your online ordering system, fully integrated with gift cards, loyalty rewards, promotions, referrals, customer communications, and more. Designed specifically for local businesses in food, retail, beauty, and service industries, our all-in-one platform helps you convert more orders, boost customer lifetime value, and grow faster.
Founded in 2011 and trusted by thousands of users across Canada, SeeMyApps is your go-to solution for:
• 🛒 Seamless online ordering
• 🎁 Upsell-ready gift cards and rewards
• 📲 Customer engagement via mobile app and SMS
• 💡 Personalized promotions and loyalty incentives
• 🌎 Expanding your reach beyond the storefront
If you’re ready to turn every online shopper into a higher-spending, loyal customer; SeeMyApps makes it happen.
More orders. More revenue. Less hassle. That’s the SeeMyApps advantage.