What is Average Order Value (AOV)?

What is Average Order Value (AOV)? Average order value is a critical metric for all data-driven businesses to track if they want to scale their profits and revenue growth.

Knowing the average dollar spent on each order placed across your business channels can help you plan pricing and marketing strategies to increase that value then — which can significantly impact your bottom line.

Benefits of Knowing Your AOV Knowing your company’s average order value helps you to evaluate your pricing strategy and online marketing efforts by providing the metrics needed to measure the long-term value of individual customers. Businesses can directly impact their revenue growth by increasing their average order value.

When you expand the average order value, you sell more inventory. Since customers are buying more products, your revenue increases. Consolidating the same amount of units sold to an individual customer into a single sale cuts costs…