Average Order Value (AOV) gets mentioned often in ecommerce metrics. Since it’s just a single value, the strategies around improving it are pretty basic though. Often it’s just “increase AOV by …” with hundreds of tactics listed. You can build a different strategy with it though. One that’s more adaptable and effective. Instead of looking …
Tag: aov
Repeat customers should be placing larger orders and increasing AOV
A good rule of thumb with repeat customers is that they should be placing larger order over-time (Average Order Value increases). That would be a sign of growing trust and loyalty in your customer base. Some products might be durable with a consumable component (e.g. printer and ink). In those cases the durable product might need …
Getting Average Order Value completely wrong
I started reading another book on data analysis for ecommerce but ended up putting it down, which is rare for me. This section caused me to sit up and scratch my head: Simply constructed, AOV [Average Order Value] is the sum total cost of the items purchased, divided by the number of items. The cost? …
Was that an unusually good period or are things getting better?
This week I released some additional Insights for Repeat Customer Insights. Insights are my fancy name for the automatic analysis and advice that the app gives you based on what its algorithms find in your data. These new Insights will compare your Shopify store’s performance in specific dates to how it performed overall. For example, …
Low AOV, drives a little slower
Average Order Value is a key sales metric for Shopify store. It’s not the only metric you should watch but if it gets too low, your store could be hurt in various ways. Some clear, some complex. The most visible way is that with a drop in AOV, you’ll be earning less per order. Usually …
Quick formula to learn what you can afford to pay per click for a Shopify customer
When you’re trying to make advertising work, there’s a simple calculation you can use to get a rough idea on how much you can spend per click. Multiply your purchase conversion rate by the first order’s average value (AOV) and your margin. For example, 3% conversion rate X $50 AOV X 20% margin = $0.30 …
How Average Order Value affects your Shopify store’s margin
Understanding how all of the different ecommerce metrics relate and affect each other is difficult. I’m going to explain how Average Order Value (AOV) relates to your margin. Once you know how AOV and margin relate, you’ll be able to take advise for either of those metrics and adapt it to the other metric. After …