The light blue bars are showing the distribution of the value for each of our orders. Orders’ value distribution and percentage of orders based on total. One example of a website that provides AOV benchmarks for different industries. However, keep in mind that your average order value is dependent on several aspects such as your pricing point, region/location, market segment, and so on… If benchmarks in the fashion industry show an AOV of 60€ and you have a 13,75€ AOV, perhaps your sales strategy may not be as effective. Using benchmarksīenchmarks can be used to compare your company's performance against others.
Maybe customers acquired by email channels are using more discounts (resulting in a lower order value), versus customers in France who are liking your product and therefore order more quantities or combine multiple items per order ( resulting in a greater order value). The goal would be to spot a different behavior or different trends. You could also look at these metrics (average, median, mode) for your order's value broken down by country or acquisition channel, etc… To be more precise, we would have to look at our orders’ value distribution and use additional metrics such as median or mode, or standard deviation to give a broader picture than just the average order value. This could mean that your customers purchase a few items per order and also low-value products. You observe that your average order value ( AOV) is 13,75€. Let’s start with an example, suppose you sell the following items: The idea is to gain a good understanding of your customers’ purchase behavior before trying new selling strategies to increase order value.
You can also use them as a comparison to other industries. Different dimensions, such as your product portfolio’s price range, acquisition channel, and location, can have an impact on these metrics. These metrics can help you in understanding how your customers purchase at an “order level”. Photo by Mildlee on Unsplash Why use median, mode, or average order value?
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