What is AOV (Average Order Value)? How to calculate it and measures to increase order value

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AOV (Average Order Value) is an important indicator that shows how much a customer pays on average per order. Improving AOV is essential for increasing sales on e-commerce sites and in-store operations.

In this article, we will explain the basic calculation method of AOV in an denmark telegram data easy-to-understand manner, and introduce specific measures to increase order value and improve profitability. In the second half of the article, we will also introduce "GENIEE RECOMMEND," a recommendation tool recommended for improving AOV.

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【table of contents】
What is AOV (Average Order Value)?
How to calculate AOV (average order value)
7 ways to increase AOV (average order value)
How to analyze AOVs
Summary of AOV (Average Order Value)
What is AOV (Average Order Value)?
What is AOV (Average Order Value)?

AOV (Average Order Value) is an indicator that shows the average purchase amount per order, and is called "average order value" in Japanese. AOV is generally used in stores and e-commerce sites to quantify customer purchasing behavior over a specific period and understand sales trends.

The calculation is very simple: take the total sales for a specific period (usually a month or year) and divide it by the total number of orders during that period. This value is an essential metric for considering measures to increase the profitability of your store or service.

By understanding the customer purchase price through AOV analysis, it is possible to measure the effectiveness of upselling and cross-selling and to plan pricing strategies. Correctly understanding and utilizing AOV is important to efficiently maximize business profits.

How to calculate AOV (average order value)
How to calculate AOV (average order value)

AOV is calculated using the following formula:

AOV = Total Revenue / Number of Orders
For example, if your sales in a month were 500,000 yen and you placed 200 orders, your AOV would be 500,000 yen ÷ 200 = 2,500 yen, so your average order value (AOV) for this period would be 2,500 yen.

Analyzing customer purchasing behavior based on the calculated AOV value can be used to consider measures to efficiently increase sales. If you are using an e-commerce platform such as Shopify, you can easily check AOV using the customer report function without having to calculate it yourself.