What is AOV (Average Order Value)?
Average Order Value (AOV) is a key e-commerce and performance marketing metric that measures the average amount a customer spends per transaction. It provides businesses with valuable insights into customer purchasing behavior, pricing strategy, and revenue optimization.
Types of AOV Metrics in Strique
Strique offers three types of AOV calculations to give users a comprehensive understanding of customer spending patterns:
1. Mean AOV
The most common way to calculate AOV.
Formula: Total Revenue / Total Number of Orders
Pros: Simple and widely used.
Cons: Can be skewed by extremely high or low-value orders.
2. Median AOV
The middle value when all order values are arranged in ascending order.
Pros: Eliminates the impact of outliers, providing a more accurate representation of typical order value.
Cons: Doesn’t account for volume variations in high-value transactions.
3. Mode AOV
The most frequently occurring order value.
Pros: Helps identify the most common spending behavior of customers.
Cons: May not always be useful if there is a wide range of order values.
4. Mode to Mean Ratio Scorecard
This metric helps businesses understand how closely the most frequent order value (Mode) aligns with the average order value (Mean).
A higher ratio indicates consistent customer spending, while a lower ratio suggests price variability among orders.
How to Access the AOV Widget in Strique
To enable the AOV widget, ensure that:
The Organization’s goal is set to e-commerce.
Shopify is connected as an integration.
Steps to Enable the AOV Widget:
Create a Report in Strique.
Click Customize and go to the Strique Custom tab.
Select AOV Analysis and click Save.
The AOV widget will now be enabled.
This widget provides insights into Mean AOV, Median AOV, Mode AOV, and the Mode to Mean Ratio Scorecard for deeper analysis.
Use Case Example: Increasing AOV through Bundling
Scenario:
An e-commerce store selling skincare products notices that their AOV is $45, but their Median AOV is $35, suggesting that most orders are on the lower end while a few high-value orders are skewing the mean.
Insights from AOV Widget:
The Mode to Mean Ratio is 0.78, indicating variability in order values.
The most common order value (Mode) is $30, meaning a large number of customers purchase single, lower-cost items.
High-spending customers push the Mean AOV up, but there is room to increase the spending of lower-end customers.
Actionable Insights:
✅ Create Bundled Offers – The store notices that customers buying a $30 face wash often purchase a $20 moisturizer in separate orders. To increase AOV, they create a bundle for $45 (instead of $50) to encourage combined purchases.
✅ Introduce Free Shipping Thresholds – Most customers check out with a single product under $50. By offering free shipping on orders above $60, they encourage users to add more items to their cart, increasing AOV.
✅ Use Personalized Upselling – Customers purchasing a $30 serum get a special pop-up at checkout suggesting a complementary $25 toner at a 10% discount if bought together. This drives higher cart values.
✅ Targeted Ad Campaigns – The brand uses Meta and Google Ads to retarget customers who purchased only one item, offering them a special limited-time discount on bundles, leading to an increase in repeat purchases and higher AOV.
Conclusion
AOV is a critical metric for businesses looking to maximize revenue and profitability. By leveraging Strique’s AOV Analysis Widget, businesses can gain actionable insights, refine their pricing strategies, and optimize their ad spend to improve customer purchase behavior.