Marketing Acronyms

Average Order Value (AOV)

Average Cart Size

What does it mean:
Used mainly in e-commerce businesses it’s the average size of all the orders for a given period. It’s an important metric because larger AOV means more ability to spend money to acquire users. 

The Formula:

Total Revenue / Total Orders = AOV

Use it in a sentence:

To colleagues:

“Let’s try to increase AOV this month with a promotion for free shipping for 5 items or more.”

To investors:

“We increased our AOV by upselling users a bobblehead during checkout. Everyone loves bobbleheads.”

At a party:

“You don’t even want to know my AOV on I’m pretty sure it violates several international trade deals.”

aov meaning - average order value

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