Online Retail: Analyzing Trend of Average Order Value (AOV) over time
Average Order Value (AOV) is the average amount of value contributed by a customer or customer segment through their orders. It is irrespective of how many products they buy and refers to the average monetary value (order-wise) contributed by them. Average order value is an important attribute to check the status and involvement of customers into the business.
The analysis of AOV determines how well a business understands the activity and change of customer actions concerning the financial growth of the business. The more is the average order value of a customer or a segment, the better it is for the business. Yet, its analysis not only means to figure it once in a while and forget about it at rest of the time. Its constant analysis is necessary to know if a business is growing or declining from the AOV point of view.
Enalito gives its retailers an analytical genius to not only figure out AOV but also access and analyze the trend of AOV over time. The product suite provides a month by month trend of AOV for each customer as well as customer segments. With proper analysis of the stats, a store can understand customer engagement and determine the measures to uplift the AOV.
Average order value is one of the six important KPIs that determine the business growth. On Enalito’s dashboard, a retailer can find two graphs for AOV. One graph shows the month by month AOV of a customer segment, while other graph shows the month by month difference in the AOV values (change in trend). The analysis of these two graphs provide the exact trend of AOV and especially ranging from the beginning of the store till today.
Enalito helps to understand the change in AOVs and also suggests what campaigns should be sent to each customer segment. The analysis of AOV also sends forth the insights to acknowledge which customers are the best contributing ones and which ones need campaigning. The trend of AOV over time is a necessary aspect to know and this is what Enalito serves with exceptional accuracy, reliability, and assured productivity.