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AOV Solver
Calculated Result
AOV = revenue / orders
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Target Logic: AOV
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What is AOV?
AOV (Average Order Value) measures the average amount spent each time a customer places an order. Increasing AOV — through upsells, bundles, or free shipping thresholds — is often more cost-effective than acquiring more customers.
Worked Example
An online store generates $120,000 in revenue from 800 orders in a month. AOV = $120,000 ÷ 800 = $150. If you can increase AOV to $175 with bundled offers, revenue grows 17% with zero additional customer acquisition cost.
Related ECOMMERCE Metrics
ROAS
ROAS (Return on Ad Spend) measures how much revenue you generate for every dollar spent on advertising. It's the fastest signal of campaign revenue efficiency and is widely used to optimize and scale direct-response campaigns.
LTV (Lifetime Value)
LTV (Lifetime Value) predicts the total revenue a single customer will generate over their entire relationship with your brand. It's the single most important input for deciding how much you can afford to spend on customer acquisition.
Add-to-Cart Rate
Add-to-Cart Rate measures how many ad clicks result in a product being added to the shopping cart. It's a mid-funnel signal that indicates product appeal, pricing competitiveness, and landing page quality.
CAC
CAC (Customer Acquisition Cost) measures the total cost of acquiring one new customer — including all marketing and sales spend. Comparing CAC to LTV tells you whether customer relationships are profitable over time.
Expert Insights
How do I improve my AOV?
Improving AOV requires a dual focus on quality and efficiency. For ECOMMERCE metrics, we recommend auditing your top-performing segments and re-allocating budget from underperforming areas to those with higher baseline AOV potential.
Is AOV a primary KPI?
While AOV is a critical indicator of regional performance, it should always be viewed alongside downstream metrics like ROI to ensure volume isn't coming at the expense of profitability.