Why is AOV such an important metric for your eCommerce store?

1Answer

For a variety of reasons, AOV is important. It gives you information about your customers' shopping habits, for starters. You can categorise your customers and schedule your marketing strategies accordingly based on the amount of money they spend per order.

AOV also has a strong relationship with benefit. When your store's average order value (AOV) rises, your profits normally rise with it.

 

Finally, this nagging measure will help you make better pricing decisions. Is it better to raise or lower your price? How big of a discount can you give? Can you consider bundling the products into a single shipment? Calculating and critically reviewing your AOV will help you answer these and other questions.

 

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