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Average order value (AOV) is an ecommerce measure that helps brands evaluate the average amount each customer spends on purchases during a single transaction on their website.
Retailers place increasing importance on this metric as an essential indicator of their ecommerce business model. Indeed, it can provide meaningful insights into customer behavior and which products or services are garnering the highest number of orders.
However, as a single metric, it should be considered as just one among many practical factors when contemplating how to nurture your brand’s overall growth.
Traditionally, AOV has been a useful metric when brands and retailers want to capture quantitative data to increase order values and revenue. You can calculate it by dividing total revenue by the number of orders received.
Teams may kickstart marketing strategies that can specifically increase AOV, like offering free shipping with a minimum order or creating product bundles, which can promote an inspiring shopping experience for your most loyal customers.
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