Do you have a lot of traffic on your online store, a high conversion rate, your sales are increasing, but your profits are not as expected? What is happening? What can you do to fix it? You probably need to work on increasing your average order value (AOV).
Generally, once you get a good conversion rate, the next step is to increase your website AOV from the traffic you already have to get customers to buy more products or choose more expensive items in each transaction.
Not sure where to start? Below, you’ll discover some of the best strategies to boost your average cart value and take your online store to the next level.
What is Average Order Value?
The AOV (Average Order Value) represents the average amount of money a customer spends for each purchase in your online store. The average order value is important for you to understand the purchasing habits of your consumers and, in addition, it helps you with the pricing strategy and with the development of your online marketing measures.
AOV not only shows hw somalia email list 35881 contact leads many users are interested in your store and how many of them have made a purchase, but it also provides an accurate measure to determine the long-term value of a customer.
As you can see, AOV is a valuable KPI for your business. But do you know what data you should consider when calculating it? And most importantly, what formula to apply? Find out below.
How is it calculated?
It’s very simple! First, you need to have these 2 pieces of information:
Total how to create stunning optin forms in wordpress (step by step) sales amount for a specific period of time that you want to verify (1 month, 3 months, etc.)
Number of orders placed in your store during that same period.
Now, with that information you apply the following formula:
The result of dividing total benin businesses directory sales in money by the number of orders during the same period is, on average, what Strategies to customers spend in your store each time they place an order.
It is essential for the growth of your business and for increasing profitability to carry out measurements such as AOV. In fact, you can turn to professionals to help you in the process.