How much money is your customer spending? In order to monetize as well as possible, it is good to know your Average Order Value. AOV, or the average amount spent per order, can be calculated for totals or by category, for instance, traffic sources, product categories, or campaigns. However, this will only show a customer’s spend per transaction. To measure a customer’s spending per customer, there is a different metric available called Revenue Per User. The average order value is a commonly used key performance indicator that online businesses measure to understand their customer’s purchasing habits. The AOV can be tracked for any time period, but most companies monitor the moving monthly average.
The AOV is a commonly used key performance indicator for online retailers, which helps them understand their customers’ wholesale habits. The AOV metric can be tracked for any time period, but most companies monitor the moving monthly average. Knowing this metric helps a company evaluate its overall online marketing efforts and pricing strategy. As a benchmark of customer behavior, the AOV helps a company set goals and strategies and evaluate how well those strategies are working. Sometimes it’s more beneficial for marketers to focus on increasing their average order value (AOV) instead of just focusing on traffic. Increasing traffic usually costs money, while boosting AOV does not.
Increasing traffic without increasing AOV is an outdated strategy. Increasing your AOV should be your focus instead. It costs little to nothing to increase your AOV, while increasing traffic often comes with a hefty price tag. One way to measure the real average order value is done by the advanced Salesforce attribution integration made possible by Odyssey.
This formula is really simple. To calculate your company’s average order value, divide the total revenue by the number of orders. The formula is very simple, just divide the total revenue by the total orders in a certain period. AOV can be measured for any time period, but many marketers monitor the moving monthly average.