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Average Order Value (AOV)
Average Order Value (AOV) is a metric that helps retailers understand their customers’ purchasing behaviors. An average order value tracks the average dollar amount spent every time a customer places an order. Knowing your company’s average order value helps you to evaluate your pricing strategy and online marketing efforts by providing the metrics needed to measure the long-term value of individual customers. Listed here are financial model templates that take into account the calculation of Average Order Value.
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Average Order Value (AOV) refers to an ecommerce metric that measures the average total of every order placed with a merchant over a defined period of time. This metric drives key business decisions such as advertising and product pricing.
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