Average Order Value
Average Order Value (AOV) is the average amount each customer spends on each purchase. This metric is calculated by dividing the total sales revenue within a specific time by the number of puchases made during that time.
A high AOV indicates that customers are buying more or higher-priced products, which leads to higher revenue and more profit. AOV helps businesses understand customer behavior and identify opportunities for increasing revenue. Bundle deals, upselling or cross-selling products can contribute to AOV and profitability.