Conversion Optimisation
Average Order Value (AOV)
Also known as: AOV & Average basket value
Plain English
How much customers spend per order on average.
Definition
Average Order Value (AOV) is the average amount spent each time a customer places an order.
In practice
Used to measure purchasing glossaryBehaviourBehaviour refers to how users interact with a system, including actions, patterns, and responses.Open glossary term and identify opportunities for upselling or bundling.
In context
It is the quietest lever in ecommerce. Lifting it needs no extra glossaryTrafficTraffic refers to the number of users visiting a website, app, or digital product over a given period.Open glossary term, and a change to what is offered at the basket often moves it more than a discount would.
The reality
Increasing AOV is often easier than increasing glossaryTrafficTraffic refers to the number of users visiting a website, app, or digital product over a given period.Open glossary term or glossaryConversion RateConversion rate is the percentage of users who complete a desired action compared to the total number of users.Open glossary term.
Compared with
Average Order Value vs Revenue per Visitor
AOV only counts people who bought. Revenue per visitor divides across everyone. AOV can rise while revenue per visitor falls, if the change that lifted basket size put more people off buying at all.
FAQ
Common questions
A few practical answers to the questions that usually come up around this term.
What is average order value?
AOV is the average amount spent per order.
How do you calculate AOV?
By dividing total revenue by the number of orders.
Why is AOV important?
It helps measure and improve revenue per transaction.
How do you increase AOV?
Through upselling, cross-selling, and bundling.
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