The traffic on your website is high. The conversion rates are good. But are your order values great as well? The Average Order Value (AOV) is a useful metric that you should monitor as your business grows. Typically, this is one of the first measures you should try to improve to increase your revenue or optimize the return on your marketing efforts. But let's dig a little deeper into the AOV analysis and look at it per order count.
Definitions
The AOV per Order Count report allows you to understand the Average Order Value for each order number.
Purchase | Order Count |
AOV | Average Order Value of the purchase count, calculated by Sum of Gross Revenue / Number of Orders |
Total Orders | Number of orders |
The AOV per order count is shown as a color-coded column chart followed by absolute figures. Trends get even more clear by the growth rate comparing each data point with the previous one order count:
Use Cases
The great part of focusing on the average order value is that you concentrate on customers who already made their purchases. The report answers the following questions:
- How does the basket increase depending on the number of orders?
- Should you spend more on reactivating a customer with many previous orders than on one with e.g. only one order? If so, how much more is this worth to you?
- If you have set a minimum purchase amount for the first order, does it make sense? Or do customers just place a large first order and then lower their AOV?
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