Coup de Poing
Let’s talk
Glossary
Glossary

Average order value

The average order value relates the revenue from a set of orders to the number of retained orders. Taxes, returns, cancellations, and time periods must be specified. Its evolution can result from a change in price, product range, or customer base. It does not, on its own, demonstrate an improvement due to the programme.

Coup de Poing editorial team2 min
Measure performance

A concrete example

A turnover of €24,000 spread across 300 orders results in an average order value of €80. Please specify whether the amounts include taxes, returns, or fees.

A point to consider

An exceptional order can shift the average. Also consider the median and purchase frequency.

Explain the increase before valuing it

Break down the changes in price, quantity, product range purchased, and customer profile. Then compare customers with similar tenure and purchase periods. An increase in average order value coupled with a decrease in purchase frequency can leave total spending unchanged. Therefore, use the average order value along with the number of buyers, the number of orders, and the profit margin to understand the actual economic trends.

Questions to ask your team

  • Is the increase due to additional purchases or a price change?
  • Do exceptional orders significantly alter the average?

Useful for someone on your team?

Pass on the insight with a ready-to-personalise post.

Keep exploring.

Glossary 2 min

Purchase Frequency

Purchase frequency describes the number of purchases per customer over a defined period. It must take into account the consumption cycle and differences between populations. An apparent increase may result from a shift in purchases over time. Observing cohorts helps to interpret the continuity of behaviour.

Understand and apply
Glossary 2 min

Segmentation

Segmentation organizes a population into groups useful for a decision or action. It can be based on usage, potential, needs, or history. A segment must lead to a justifiable and understandable action. Multiplying groups without associated actions complicates management without any clear benefit.

Understand and apply
YOUR NEXT PROGRAM STARTS HERE

Let’s grow your relationships.

An ambition, a challenge, an idea? Let's talk about the programme that will move your clients and teams forward.

Let’s discuss your project
My project