Calculating Your Average Order Value (AOV)

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Overview

Calculating your Average Order Value (AOV) can be helpful when you want to add a condition to your segments to target "High Value" or "Low Value" customers.

In this guide, we cover the process of calculating your AOV and then using this number to add conditions to your segments so you can target customers that have purchased above and below your AOV.

Calculating Average Order Value

The calculation for AOV is as follows:

Total store revenue / total number of orders

If you want to calculate AOV for a certain time period, limit the timeframe for the numbers above to only capture revenue and orders within that period.

We recommend using the revenue and order values in your ecommerce site to calculate AOV. While Klaviyo does track this information, some customers that return products or cancel orders might cause slight discrepancies.

Here is an example of where to look for revenue and order information in a Shopify store. Start from your Shopify Admin and click into Analytics > Dashboards. This page provides a list of report preview cards. Set the calendar dropdown to the time period you want to calculate for.

The Total Sales card shows your total store revenue.

The Total Orders card shows your total orders.

Use the numbers from these two cards, along with the AOV equation above, to calculate your AOV. Also, note that some ecommerce platforms may include a report that specifically captures this number.

You can use this number to double check your own calculations.

Targeting "High Value" and "Low Value" Customers

After calculating your AOV you can use this number to add a condition to your segment to target either "High Value" or "Low Value" customers. For this example, we will use an AOV of $100 to keep things simple. We will be using the "Predictive analytics about someone" condition to build these segments.

To target "High Value" customers (in our example, customers that have an average order value above $100), add the following condition to your segment.

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To target "Low Value" customers (in our example, customers that have an average order value below $100), add the following condition to your segment.

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Learn more about how to use AOV in your segments by reading our guide on creating engagement tiers.

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