Average Order Value (AOV)

Average Order Value (AOV) tracks the average dollar amount spent each time a customer places an order on a website or mobile app. To calculate the AOV, simply divide total revenue by the number of orders.

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Average Order Value (AOV) tracks the average dollar amount spent each time a customer places an order on a website or mobile app. To calculate the AOV, simply divide total revenue by the number of orders.

What’s its purpose? Knowing an AOV helps businesses with marketing and pricing strategies.

For example, if a business receives seven hundred small orders and three hundred large orders, the marketing department may decide it prudent to create a campaign targeting the group that is placing the large orders.

Last updated: 2021/08/04