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Average Order Value

What Is AOV (Average Order Value)?

Average order value is one of the main KPIs that shows the medium amount of client spending for a concrete period of time. The analysis of this indicator allows you to evaluate the effectiveness of the marketing activities and the productivity of the marketing team.

Why Is AOV Important?

Analysis of the AOV helps:

  • Evaluate the effectiveness of the marketing strategy.
  • Draw conclusions about the purchasing power of customers.
  • Reveal the seasonality of sales.
  • Determine employee performance.

An increased average order value (AOV) means that buyers are willing to buy from you. It also shows that your company provides users with a quality customer experience. If the AOV indicator is too low, then this indicates that you are doing something wrong and you need to conduct additional research to check all aspects of your company.

How To Calculate Average Order Value

You can calculate this indicator using a very simple average order value formula:
Average check = amount of revenue/number of customers
Let’s give an example of the calculation using this formula. Toys online store managed to sell 20 items worth $5,000. This means that the average check will be calculated as follows: $5,000/20 items = $250.

AOV By Industry

According to XP2 Dynamic Yield, as of November 2022, the following worldwide average order value by industry was next:

  • Food & beverage – $109;
  • Home & furniture – $37;
  • Beauty & personal care – $75;
  • Luxury & jewelry – $182;
  • Pet care & veterinary services – $71;
  • Fashion, accessories & apparel – $126;
  • Multi-brand retail – $139;
  • Consumer goods – $112.

How To Increase AOV

Increasing AOV is an opportunity to increase revenue without attracting new customers:

  • Implement bonus and loyalty programs.
  • Offer ready-made sets of goods (product bundles).
  • Use the upsell technique.
  • Implement cross-sell technique.
  • Periodically update the range of products.
  • Offer installments and different forms of payment.
  • Train and motivate the sales team.
  • Launch seasonal promotions, personal discounts, etc.
  • Raise your prices carefully.

How To Find Average Order Value In Google Analytics

Average order value isn’t included in the standard Google Analytics reports, but you can access Average purchase revenue per user, which is the same KPI. To find it, open the Reports tab, then Monetization » Overview. Then, you can scroll down to the graph that shows the average user purchase revenue.

AOV Frequently Asked Questions

What is a high AOV?

The high average order value is the total amount of the revenue for a specific period of time, divided by the number of checks, which is higher than the medium AOV indicator in your industry segment.

What is the average order value KPI?

Average order value KPI is a metric that measures the average amount of money that customers spend making a purchase in an online store. It gives the necessary data for a deeper understanding of their client’s behavior.

What is a low average order value?

The average check is the money flow, reduced to the number of checks for a concrete time period, which is less than the medium AOV indicator in your industry segment.

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