Average Order Value (AOV)
Average Order Value(AOV) refers to the average order size from your store. This metric can be used to predict revenue; once you are able to predict website traffic and conversion rate, AOV is the next logical step. If you can increase this metric, you can cover fixed costs easier and see more profit.
Consider working these angles to achieve a higher average order value:
Implement up-selling and cross-selling techniques.
Offer free shipping.
Provide volume discounts.
Create a loyalty programs.
Parameters
Calculation: AOV = revenue / conversions
Example: AOV = 1 000 000 / 25 000 (β¬) = 40 β¬
Unit: Currency
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