The average dollar amount a customer spends per transaction, calculated as total revenue divided by number of orders.
Why it matters
AOV tells you whether growth is coming from more customers or from each customer spending more. A marketing team can hit a revenue target by increasing volume, increasing AOV, or both — and the right lever depends on where the business actually has room to grow.
In a sentence
"Adding a bundle offer at checkout raised our AOV by 12% without any increase in traffic."
Related terms
- Antonyms: N/A (AOV is a measurement, not a concept with a direct opposite; a relevant contrast is *transaction volume*, which measures count rather than size.)
- Often confused with: LTV (AOV measures a single transaction; LTV measures a customer's total value over their entire relationship with a business).
- Synonyms: Average transaction value, average basket size.