Average order value is the total monetary value of your conversions (orders) divided by the number of conversions (orders that took place). 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 article, you will learn how to calculate your AOV.
Note that AOV will only populate in Klaviyo if you have a Placed Order metric in your account.
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 to double check your own calculations.
Once you have this number available, you can use this to create segments to analyze trends and send targeted messages based on your customers' shopping behavior.