Average order value · AOV
Average order value (AOV) is the average amount spent per order or per contract. You get it by dividing revenue by the number of orders.
The formula
Average order value = Revenue ÷ Number of orders
A concrete example
Example
$30,000 in sales for 250 orders: average order value = 30,000 ÷ 250 = $120.
Why it matters
Raising average order value (cross-sells, upsells) improves your whole economics at once: the same CAC becomes more profitable and your LTV climbs.