Average Order Value (AOV)

Discover how Average Order Value (AOV) measures the average amount spent each time a customer places an order. Learn how to track, analyze, and increase AOV to boost profitability and maximize the value of each transaction.

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KPI Details for Average Order Value (AOV)

Category

Marketing, Ecommerce
Type

depends on
Calculation

Average Order Value = Total Revenue / Number of Orders​
Measure

Tracks the average revenue per order, helping businesses evaluate the effectiveness of product pricing, bundling, and cross-sell strategies.
Data Sources:

Shopify, WooCommerce, BigCommerce, Google Analytics, Stripe, Klaviyo, ReCharge.
Frequency

Tracked weekly or monthly to monitor revenue trends and optimize sales strategies.

Example target

Increase AOV by 15% in Q3 by introducing product bundles, offering free shipping thresholds, and upselling higher-value items.

Example Reports Use Case

An eCommerce Marketing Manager tracks AOV to measure the effectiveness of promotional tactics. If AOV is stagnant, they may test bundle offers, add upsell modules on product pages, or create volume discounts.

KPI Example

Best Practices for Average Order Value

  • Upsell & Cross-Sell Strategically

    Recommend complementary or premium products during the shopping journey and at checkout.

  • Implement Bundled Offers

    Encourage larger purchases with value-packed product bundles or kits.

  • Set Free Shipping Thresholds

    Motivate customers to spend more by offering free shipping above a certain amount.

  • Personalize Recommendations

    Use customer data to serve dynamic, relevant product suggestions.

What is Average Order Value (AOV)

Average Order Value (AOV) is a key performance indicator (KPI) that measures the average amount of revenue generated per order over a specific time period. It is calculated by dividing total revenue by the total number of orders. AOV helps e-commerce businesses understand customer purchasing behavior and assess the effectiveness of strategies aimed at increasing revenue per transaction. Monitoring AOV is important for evaluating overall business health and identifying opportunities to improve marketing, upselling, and cross-selling efforts to drive higher returns from each customer order.

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