Definition
Average Order Value (AOV) is a metric that represents the average amount of money a customer spends per order on a website over a given period.
Why it matters (in Poovi’s context)
Increasing AOV is a key strategy for boosting revenue and profitability without necessarily increasing the volume of orders or marketing spend.
Key properties or components
- Calculated by dividing total revenue by the number of orders
- Can be increased through upselling and bundling
- Key indicator of customer spending habits
Contradictions or debates
None.