Average Order Value (AOV)
Average order value is the mean amount spent per order — total revenue divided by number of orders — and it rises with bundling and upselling.
How do you raise it?
Beyond raising prices: bundles, quantity discounts, and stepping customers up to a higher option. Live is especially good for bundles because you can demonstrate in real time why two things belong together.
Why read it alongside conversion
Push AOV alone and conversion usually drops; push conversion alone and AOV usually drops. Revenue moves with the product of the two, so they have to be read together.
Frequently Asked Questions
Q. Does featuring fewer products lower AOV?
Often the opposite. Cutting the product count and explaining each one properly tends to increase bundle purchases, which raises AOV.
Q. How is AOV different from LTV?
AOV is the value of a single order. LTV is everything that customer spends across the whole relationship.