Average Order Value (AOV)
Definition
Average order value (AOV) is the average amount of money customers spend per transaction. AOV is the shorthand for average order value and is calculated by dividing total revenue by the number of transactions over a period of time.
How AOV Is Used
AOV is often used alongside metrics like conversion rate and customer lifetime value to measure overall performance. For example, increasing AOV from $50 to $60 through targeted upsells can significantly lift revenue without requiring new customers.