AOV Meaning: What You Need to Know
AOV meaning: Average Order Value

Average Order Value is a key metric.
Average Order Value is a key metric. for any eCommerce business, because it measures the average revenue earned with each purchase, which can provide valuable insights into the efficiency of your business. In this article, I will describe what AOV is and how to calculate it.
AOV can help you to identify trends in customer behavior, which means that AOV can also provide insight into the effectiveness of advertising campaigns, as well as the effectiveness of pricing policies, among other kPIs. By understanding AOV, businesses can better understand their customer base and make informed decisions about their strategy.
Average Order Value can even help you to measure the performance of your competitors. By comparing the AOV of two businesses, it is possible to determine which one is more efficient and better able to generate revenue.
Tactics for Increasing AOV

AOV = revenue / number of sales
There are several tactics that your business can deploy, such as:
- Discounts
- Promotions
- Improving customer service
- Up-selling
- Cross-selling
Customer service and AOV
Average shoppers reportedly prefer businesses with great customer service, which also makes shoppers likely to buy more. In addition, happy shoppers are likely to pay a premium to your business if you make them feel special through custom service, which we will explore in a future episode of Haggle This: Pay Less per Customer.
Complimentary and Supplementary Purchases Increase Average Order Value.
Up-selling and cross-selling products can also be effective tactics for increasing AOV. By suggesting related products or upgrades, your business can encourage enthusiastic shoppers to buy more and to recommend your business to their circle of influence. This is likely to lower the cost of future customers from that cluster and to increase their lifetime value.
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