What Is The Average Order Value? (And How To Increase It)

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Shall we make it an extra cheese slice? Would you like a single or a double patty? I’m sure you would have been asked this at a McDonald’s. That is one way to increase your average order value. And, it works.

The average order value (AOV) is a business metric that measures the average amount of money that a customer spends on a single order. This can be used to measure the health of your business and to help you make decisions about how to grow your business. In this blog post, we will discuss the average order value and how you can increase it.

"you may also like" recommendations on ecommerce sites is one way to increase the average order value.
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Why is the average order value important?

Average order value (AOV) is a metric that measures the average amount spent per order on a website or in a store.

It gives insights into how much revenue you generate per order. A higher AOV means that customers are spending more per order, which can lead to more profits. A lower AOV may indicate that customers are not finding enough value in the products or that the prices are too high.

Businesses use AOV to track their progress and compare their performance to competitors. They also use AOV to help make decisions about pricing, product selection, and marketing. By understanding the average order value, businesses can make decisions that will help them increase profits and grow their business.

Why you should measure AOV as a non-eCommerce business?

AOV is a valuable metric for non-eCommerce businesses too.

There are a few reasons why measuring AOV is beneficial for businesses that don’t sell online. First, AOV helps you to understand how much each customer is worth to your business. This is valuable information for making decisions about marketing and sales strategies.

Additionally, AOV helps you to measure the success of your business over time. If you see a decrease in AOV, it may be an indication that something is wrong and you will need to take action to correct it.

If you are not currently measuring AOV, we suggest that you start doing so. It can provide you with valuable insights into your business and help you to make better decisions about marketing, sales, and other strategies.


How to increase average order value?

There are a few key ways you can increase your average order value. One is to offer add-ons and upsells at checkout. Another is to offer discounts for larger orders. You can also create bundle deals that include multiple products at a discounted price.

Testing different pricing strategies is a good way to find out what works best for your business. You can also experiment with different messaging and placements to see what encourages customers to spend more. Ultimately, the goal is to increase the value customers perceive in your products or services.

Whatever strategy you decide to use, the key is to make sure you offer value to your customers. If you can do that, you’ll be well on your way to increasing your AOV and overall revenue.

Tips for offline businesses

If you own or operate an offline business, there are several ways you can increase your average order value (AOV). By implementing some simple strategies, you can encourage customers to spend more money each time they visit your store.

Here are a few tips to get you started:

  • Offer discounts or coupons: You can offer discounts or coupons to customers who spend a certain amount of money at your store. This is a great way to increase AOV while also providing an incentive for customers to come back.
  • Upsell and cross-sell: When customers are making a purchase, be sure to upsell and cross-sell related products. For example, if someone is buying a dress, you could suggest they buy a matching scarf or handbag.
  • Create package deals: Another way to increase AOV is to create package deals. For example, you could sell a package of products that go together well at a discounted price.
  • Offer free home delivery for store purchases: Customers are often more likely to purchase if they don’t have to pay for delivery and carry it on their own. You could offer free shipping for orders over a certain amount or for VIP customers.
  • Provide customer service: Finally, it’s important to provide excellent customer service. This includes things like responding quickly to questions and offering helpful advice.


There are several ways to increase your average order value, and doing so can have a significant impact on your business. Some methods include offering discounts, bundling products, and upselling. Experiment with different techniques and find what works best for your company.

Irrespective of your business category – online or offline, B2C or B2B, this needs to be a part of your sales and growth strategy. If you need any help or tips, send me a quick message and I shall be happy to schedule a quick call.

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By Nitesh Verma

Founder - Business Management Blog. I am an independent business strategy consultant, helping companies take data driven business decisions. My mission is to find and implement simple solutions for complex business problems.

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