Average order value (AOV)
Average order value (AOV) measures the average total of single orders placed on a website or mobile app over a period of time. AOV is important because it provides a valuable insight into how much your customers are spending on your products.
How do I calculate average order value (AOV)?
Average order value is calculated by dividing total revenue by the number of conversions.
Total revenue ÷ number of conversions
How do I increase my average order value?
We recommend A/B testing one or more of the following to find out which tactic works best for you and your customers:
Cross-selling and upselling through product recommendations
Qubit’s customers can leverage their rich, granular data and draw on the power of machine learning to personalize the customer journey through cross-sell and up-sell recommendations, delivered at the most impactful touchpoints.
To help our customers deliver on their business goals, we offer several strategies that align with the most common recommendations use cases. Our upsell strategy, for example, is designed for brands that wish to drive upsell on basket or checkout pages and is based on a users who purchased this product, also purchased these products logic. It is particularly useful for increasing and widening the conversion funnel
Tiered loyalty programs are effective at driving engagement and adding value for your most loyal customers. By segmenting your higher-spending customers and frequent shoppers as VIPs, for example, you can deliver targeted messaging and make loyalty aspirational.
Creating a sense of urgency has been shown to reap rewards. Our analysis shows it can deliver an average uplift of 1.5%. This is achieved by imposing time limits within which customers must complete their purchase.
This taps into scarcity economics and social proof techniques to push conversions; visitors don’t want to miss out on an item or limited-time discount.
Qubit offers three social proof strategies:
- Counting - best used to provide urgency and demand for time or stock limited products
- Recency - best used to validate product relevancy and provide confidence in the purchasing decision
- Trending - best used for helping first time visitors with discovery of products