How to measure and track AOV on your website
How much do your customers spend on your website? Average Order Value (AOV) tells you exactly that.
Understanding your AOV can help you make smarter decisions about marketing, promotions, and products – ultimately improving your bottom line. It also helps you keep on top of how your business is doing – whether customer spending is going up or down over time and how you match up against the competition.
We explain what AOV is and why it matters, how to calculate average order value, track it effectively, and use it to grow your business.
You can also download our handy AOV calculator below to help you get started.
Calculating and measuring AOV
What is AOV? Simply, it measures what your customers typically spend per sale with an easy AOV calculation.
For example, if your sales brought in R10,000 from 200 orders in a month, the AOV would be:
AOV = R10,000 divided by 200 = R50
Regularly monitoring your AOV helps you check that your sales strategies and marketing campaigns are hitting the right note with your customers so you can tweak them accordingly.
For more strategic insights, check out 10 ways to strengthen your ecommerce strategy.
What impacts AOV?
Several factors can influence your AOV, so look out for:
Device
What device customers use to shop can make a difference to their experience and your AOV. While websites are usually set up for PCs, smartphones and tablets can sometimes be forgotten. Making sure your site is mobile-friendly so customers can search quickly, navigate easily, and checkout smoothly can tip the balance as to whether they stay to shop or go elsewhere.
Time of day
How much people spend can depend on whether it’s working hours, weekends, or public holidays. The key is to find out when your site is busy and when it slows down, so you can match incentives to customers’ shopping patterns to increase sales.
Seasonality
As well as impacting AOV, seasonality can be a great opportunity. Summer holidays may see a downturn, while peak shopping times like Black Friday and Christmas can see sales soar. For an extra Black Friday boost, see our marketing tips for SMEs.
Promotions
It’s hardly rocket science, but discounts, special offers and campaigns will encourage your customers to spend more money and raise your AOV. Think personalised offers, limited-time discounts, free shipping etc.
How to track and measure AOV effectively
Your AOV will change from month to month or day to day, even if you do nothing. So it’s essential to monitor it regularly for a clear overview. However, a sudden drop in your AOV suggests a problem needing quick investigation. On a brighter note, a sudden increase gives you the opportunity to see which winning formula worked so well.
Analytics tools
Most website analytics platforms, such as Google Analytics, Adobe Analytics HubSpot, Hotjar, Shopify and more will track key KPIs, including your AOV so you can see trends and identify where you need to make improvements.
Depending on your analytics tool or version, your menu may not have a direct option to choose AOV. However, your provider will be able to guide you if you’re unsure, and there’s plenty of online help available, including 1-2-1 support from our V-Hub advisers.
Dig deeper
Drilling down further into your analytics data can give you lots of extra valuable information about your AOV. Just a few examples include:
Customer demographics: Find out your customers’ age, location, or gender to identify spending patterns.
Traffic sources: See how your customers are finding you, such as through social media, organic searches or banner ads to see which ones work the best.
Marketing: Which marketing campaigns are hitting the mark? Find which are working well – and which aren’t – so you can maximise your marketing time and money.
Use spreadsheet formulas
If you don't have access to robust analytics tools, you can still calculate AOV manually using a spreadsheet.
Set goals and track progress
Industry reports and competitor analysis can provide a good starting benchmark for your AOV. Track and analyse your AOV over time to make sure you’re moving in the right direction.
Understanding your AOV is a powerful tool for any e-commerce business. By tracking AOV, identifying what affects it, and using strategies to increase it, you can improve your customers’ experience and your bottom line.
Need some extra help with our free AOV calculator or want to know more about AOV? Get in touch with our V-Hub Digital Advisors for personalised 1-2-1 support.
