Customer Analytics

AOV (Average Order Value)

The average amount spent per order. Increasing AOV is one of the fastest ways to boost revenue.

Formula

AOV = Total Revenue / Number of Orders

What is AOV?

Average Order Value (AOV) measures the average dollar amount spent each time a customer places an order. It's one of three levers for revenue growth (alongside traffic and conversion rate).

How to Increase AOV

Upselling: Recommend premium versions
Cross-selling: Suggest complementary products
Free shipping threshold: Set it just above your current AOV
Bundle deals: Offer product bundles at a discount
Volume discounts: Incentivize larger orders

Even a small AOV increase has a multiplicative effect on revenue.

Example

Monthly revenue: $50,000. Orders: 800. AOV = $62.50.

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