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How to calculate average order value?

AOV is the average amount spent per order. This can be measured on a more micro-level, such as to traffic sources, product categories, or campaigns, but is only the average spend per transaction. To get a better understanding of a customer’s total spend there is a metric called Revenue Per User (RPU). It is recommended that you use a customer data platform or demand-side platform to measure RPU effectively. Why does it matter what the average order value is? This is a key metric many e-commerce sites measure to understand their customers’ purchasing habits. As with most digital metrics, the AOV can be tracked for any time frame. However, most companies monitor the monthly moving average.

 

Rather than focusing on generating traffic, marketers should instead focus on boosting their average order values. This is because generating traffic often requires a large budget, while increasing the AOV KPI can be done without spending a penny. Hard to believe, I know. But sometimes the more important thing to focus on is your average order value (AOV) rather than just traffic to your website. Increasing your AOV typically doesn’t cost money, but increasing traffic normally does.

 

Sometimes marketers get caught up in the traffic game; it’s not always the best strategy. Although spending money on traffic building can work, it’s usually not worth the investment. Instead of working on traffic, focus on how much your customer is spending. Higher average order values (AOV) are typically more profitable than higher traffic volumes. By connecting your CRM attribution with your marketing attribution results you can get a real extensive data-driven insight into your AOV. 

 

How do you calculate your company’s average order value? To find an accurate AOV, divide total revenue by the number of orders. The formula is simple – divide the total revenue by the number of orders in a given period of time. You can measure AOV for any length of time, but most marketers monitor the monthly moving average. A company’s average order value can be calculated by dividing the total revenue of orders. This calculation is very simple and can be done for any time period. But most marketers prefer to measure it moving mont

 

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