One of the “big three” when it comes to ecommerce metrics—along with average conversion rate and customer lifetime value— the average order value (AOV) is one of the most important tools in an online brand or retailer’s arsenal.
Average order value (AOV) is a key metric in every online brand and retailers' arsenal for several reasons. The most important of them is that growing can be simple, affordable and directly correlated with boosting your business' bottom line.
Average order value is the average amount of money each customer spends every time they make a purchase on your website. As you can image, an increase in the average order value for an online retailer has a strong correlation to an increase in profit. As an example, today, the ecommerce average order value is $114.
Armed with AOV stats, an ecommerce team can gain insight into confusing consumer shopping patterns, find ways to develop marketing and pricing strategies that move the needle, and deepen their understanding of other key metrics that drive business decisions.
As we said above, another reason AOV is such an important metric is that increasing it is almost always directly correlated with growing revenue. It is calculated by dividing the total revenue by the total number or orders. While there are of course tons of bottom-line-boosting tricks out there, growing AOV is often the most simple and affordable.
In this infographic, we’ll dig into the details of AOV, learn how to calculate it, and reveal 13 tactics—including everything from loyalty programs to product bundles to tapping into human psychology—that any ecommerce marketer, manager, or business owner can put into practice right away to grow online orders and overall revenue.