The AOV (Average Order Value) represents the average amount of money a customer spends for each purchase in your online store. The average order value is important for you to understand the purchasing habits of your consumers and, in addition, it helps you with the pricing strategy and with the development of your online marketing measures.
AOV not only shows how many users are interested in your belize whatsapp number database store and how many of them have made a purchase, but it also provides an accurate measure to determine the long-term value of a customer.
As you can see, AOV is a valuable KPI for your business. But do you know what data you should consider when calculating it? And most importantly, what formula to apply? Find out below.
How is it calculated?
It's very simple! First, you need to have these 2 pieces of information:
Total sales amount for a specific period of time that you want to verify (1 month, 3 months, etc.)
Number of orders placed in your store during that same period.
Now, with that information you apply the following formula:
AOV (%) = total revenue / number of orders
The result of dividing total sales in money by the number of orders during the same period is, on average, what customers spend in your store each time they place an order.
It is essential for the growth of your business and for increasing profitability to carry out measurements such as AOV. In fact, you can turn to professionals to help you in the process.
So what can you do if the percentage returned by the AOV is very low?