Analyzing Average Order Value by Order Sequence

Analysis > AOV > AOV by Order Sequence

Summary

The report helps you understand how customer spending behavior changes as they place more orders with your business.

Questions the report answers

• How does customer spending change over time with each additional order?
• What is the relationship between the order sequence and AOV trends?

How to read the report

The chart of Average Order Value & Number of Orders by Order Sequence helps you understand the relationship between the order sequence and the AOV showing you whether the customers are spending more or less as they place more orders.

• Increasing AOV with each Order Sequence indicates the customers are comfortable spending more with each additional order and growing willingness to invest in your products.
• Decreasing AOV with each Order Sequence indicates the customer is spending on lower-value products or finding fewer reasons to spend more on future orders.
• Flat AOV with each Order Sequence indicates the customer base is consistent, but they are not incentivized to spend more.
• Fluctuating AOV across Order Sequences could be the effect of seasonality, promotional activities, or changing product preferences.

The number of Order YoY Variance % and AOV YoY Variance % helps you understand how you are performing compared to the prior year across the order sequence.

• Positive YoY Variance means your customers are spending more in the current year.
• Negative YoY Variance means your customers are spending less in the current year.

Glossary

Order Sequence Number

A numerical identifier that represents the chronological order of a customer’s purchases. This field tracks the sequence of orders placed by an individual customer, starting from their first purchase.

tal count of orders placed by customers. It is calculated by counting the number of orders.

Average Order Value (AOV)

The average amount a customer spends per order. It is calculated by dividing the total sales amount by the number of orders.

YoY Variance %

The percentage change in a metric between this year and the same period last year. It is calculated by dividing the difference between the metric of the selected year and the same period prior year by the metric of the same period prior year.