What is Average Order Value (AOV) & 3 Ways To Increase It
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Average order value is the average amount spent by a customer per transaction, calculated by dividing total revenue by the number of orders.
Why is Average order value important?
Average order value helps businesses measure the effectiveness of their pricing strategies and marketing efforts, allowing them to optimize for higher revenue per customer.
An Easy Way To Understand Average Order Value
Calculate the average amount spent per transaction. By dividing your total revenue by the number of orders, you can determine how much customers typically spend, helping you optimize pricing and marketing strategies.