Average Order Value (AOV)
Average Order Value, or AOV, measures how much revenue the average order brings in.
Divide total revenue by total orders. That is AOV: how much each purchase is worth. It matters because more customers is not the only way to grow. Raising what each order carries is often cheaper than winning the next buyer.
Signal Type
Metric Role
Metric Type
The Formula
Worked example
Benchmarks and interpretation
Where the number actually comes from
When to use it
Common Mistakes
In the REACT framework
AOV sits in the Convert phase and measures the size of each win, not the count. Read it with Conversion Rate to decide: more buyers or better baskets? It is one of the few levers entirely in your hands.
Related metrics
Frequently Asked Questions
What is Average Order Value?
Average Order Value, or AOV, measures how much revenue the average order brings in. It tells you whether growth should come from more buyers or from better baskets.
How do you calculate Average Order Value?
Use the formula: AOV = Revenue ÷ Orders. Keep both inputs in the same reporting period and avoid mixing users, sessions, events, or customers unless the formula calls for it.
What data do you need for AOV?
You need orders and revenue, pulled from the relevant connected sources and computed for the same period.
What mistakes should you avoid with AOV?
Watch for outliers: a few huge orders can drag the average up while typical baskets shrink. Check the median occasionally, and never chase AOV so hard that conversion rate pays for it.
When should marketers use AOV?
Use AOV when you are deciding between acquiring more customers and earning more per order. Pricing, bundling, and upsell decisions all start here.
What is a good AOV?
A good AOV is one that rises without hurting conversion. Judge it against your own margin structure and category, not someone else's average, and read it next to purchase frequency.
Sources and methodology. AOV formula and definition derive from standard marketing analytics practice and platform reporting conventions. REACTIQ360 harmonises source data from Ad platforms and marketing spend, CRM / ecommerce / billing, Harmonisation layer and applies a consistent same-period computation methodology.
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