A lot goes into running an ecommerce business, and much of the focus is on boosting revenue and sales. However, many people overlook average order value when it’s a hugely important metric to measure. AOV is the average amount customers spend when they place an order on your website, and it’s calculated by adding up your online shop’s total revenue and dividing it by your total number of customers. This will give you the average value for each order placed.
Knowing your AOV is important because it can help you increase your revenue and profitability, both leading to a more successful online business. By boosting your AOV, you can generate more revenue without attracting more customers. This is helpful for small businesses, especially those without the budget to invest heavily in customer acquisition. It’s also possible to offer a better customer experience if you increase your AOV, as customers are more likely to qualify for free delivery or special offers, which will ensure they remember their shopping experience positively.