AOV
AOV (Average Order Value) - average bill: revenue ÷ number of orders. AOV growth improves unit economics without increasing the advertising budget.
AOV - Average Order Value, average bill: revenue ÷ number of orders for the period. A simple metric, but it is the most underrated growth lever.
Marketing, out of habit, thinks about quantity - more traffic, more orders. But revenue is the product of the number of orders and the average bill, and it is often cheaper to increase the second factor. Raising AOV by 15% through upsells and bundles is a plus to revenue without a single ruble of a new advertising budget.
AOV is closely related to the unit economy. When attracting a customer costs fixed money, an increase in the average order value directly improves the payback: the same CAC, but more revenue per order. Therefore, when analyzing the economics of a project, I look at AOV as carefully as I look at CPL and LTV - the benchmarks in article about LTV and CAC.
Frequently asked questions about AOV
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