Orders

Average Order Value (AOV)

What does AOV stand for?

The average order value (AOV) is a critical metric that all business owners should be aware of. This figure tells you how much money your customers are spending on average per purchase. In order to increase revenue and optimize the return on your marketing efforts, it is important to understand and track your AOV.

Lots of customers equal lots of revenue, right? But what if your actual customers are costing you more than they bring into your business?”

ALEX JOST, FOUNDER & CEO OF RETENTIONX

The importance of Average Order Value (AOV)

Average order value measures the average amount of money spent per order on your website. It is important because it directly impacts your business’s bottom line – the higher your AOV, the more revenue your business will generate.

There are a number of ways to increase your average order value, more on this later. By increasing your AOV, you can boost your business’s profits and grow your online presence.


How to calculate Average Order Value?

RetentionX can help you increase the average order value of your online shop. The platform uses data from past orders to calculate AOV for each individual customer. This allows businesses to see which customers are spending more than average and adjust their strategies accordingly.

In addition, our platform can also be used to track AOV over time and see how it changes in response to different actions taken by the business. By understanding these figures at a granular level, businesses can make better decisions that lead to more sales and higher profits.

RetentionX provides a comprehensive view of your store’s average order value (AOV). The AOV is represented as a color-coded line chart.

Shopify Average Order Value (AOV) Report
Color-coded line chart

If you want to get more details you see the absolute figures below the chart. When you compare the data from one period to the data from the previous period, you can see patterns more clearly.

Average Order Value figures
Absolute figures

How to increase AOV?

There are a number of ways to increase AOV, and the best approach will vary depending on your business and your customers. However, there are some general strategies that can be effective in most cases.

For example, you can encourage customers to add more items to their cart by offering discounts for larger orders, or by showing them related products that they may be interested in. You can also create bundles of products that offer a discount when purchased together. Whatever approach you take, increasing AOV is an important goal that should be given careful attention.

  • Put products together in a bundle and identify cross-sell opportunities
  • You can encourage your customers to buy more items by following our free shipping threshold recommendation
  • Find products that are usually bought together, but might not be the best on their own
Maximize sell through

Explore RetentionX.

Join us for an interactive, introductory RetentionX demo and see how behavioral segmentation help you optimize your marketing budget.

RetentionX will help you be more efficient

RetentionX is a retention platform that helps online businesses boost their efficiency and average order value. Our powerful software analyzes customer data to identify areas of improvement, and our team of experts provides personalized guidance to help you implement RetentionX’s recommendations. Schedule a demo today to see how RetentionX can help you grow your business!

If you want to get more specific, please have a look into the following posts: Shopify Average Order Value (AOV) & Shopware Average Order Value (AOV).

Founder & CXO of RetentionX | Enabling consumer brands to become customer-centric