AOV
Pronunciation: A-O-V
Also written as: AOV — Average Order Value
Acronym for Average Order Value; the mean revenue generated per customer transaction over a given period.
Full Definition
Average Order Value (AOV) is calculated by dividing total revenue by the number of orders within a defined timeframe and is one of the most widely cited KPIs in both physical and digital retail analytics. Improving AOV is a key lever for revenue growth without increasing customer acquisition costs, typically pursued through upselling, cross-selling, and minimum spend thresholds for free delivery. Editors should ensure AOV figures are accompanied by their calculation period, currency, and whether they include or exclude returns and cancellations. The metric should not be confused with Average Transaction Value (ATV), which may be calculated differently across organisations. Consistency between AOV and ATV usage within a single document is essential.
Usage
Usage note: Expand on first use. Clarify whether the figure includes tax, excludes returns, or covers a specific channel; unqualified AOV figures are editorially insufficient.
In Context
- "The introduction of a £50 free-shipping threshold increased AOV by £7.40 in the first quarter." — E-commerce analytics report
- "When editing retail KPI dashboards, verify that AOV and ATV are not used interchangeably without a footnote defining each." — Editorial checklist