Average Order Value (AOV) is a key performance indicator (KPI) in e-commerce and retail that measures the average amount of money a customer spends in a single transaction. It is calculated by dividing the total revenue by the total number of orders placed over a specific period. Monitoring AOV helps businesses understand customer purchasing behavior and identify opportunities to increase revenue per transaction. Strategies like upsell and cross selling are direct tactics employed to boost AOV by encouraging customers to add more valuable or additional items to their purchases.
Read more here- 17 Tips to Maximize Your Average Order Value
