Average Order Value (AOV)

• Metric
• Sales
• Analytics

The average amount of money each customer spends per transaction with a company.

Problem it addresses

Understanding how much customers are willing to spend per transaction is crucial for businesses to strategize pricing, marketing, and product bundling. Without insight into AOV, companies may miss opportunities to increase revenue through targeted strategies that encourage higher spending.

How it helps

AOV is a key metric for evaluating the effectiveness of sales and marketing strategies aimed at increasing the revenue generated from each transaction. By analyzing AOV trends, businesses can tailor their marketing efforts, adjust pricing strategies, and offer product bundles or promotions that incentivize customers to spend more, thereby boosting overall revenue.