Average Order Value (AOV)

Average Order Value (AOV) is the average dollar amount spent per transaction. Computed as: Total Revenue / Number of Orders. AOV is one of the three levers for revenue growth (alongside customer count and purchase frequency). A 10% AOV lift on a $250 medspa transaction = $25 per visit = $5,000+ per Champion customer over a 3-year retention.

AOV formula

AOV = Total Revenue (period) / Number of Transactions (period). Always compute over a meaningful window — at least 30 days for daily-frequency businesses, 90 days for monthly, 180 days for quarterly+ industries.

Industry AOV benchmarks

Typical AOV ranges: coffee $5-15, QSR $8-15, fast casual $12-18, casual dining $25-55, fine dining $120-400, beauty $60-180, medspa $150-500, dental $150-1500, HVAC $200-2500, gym $30-150/month, retail $30-100, ecommerce $40-120. Match your AOV against your tier baseline before targeting improvement.

AOV-lift tactics that work

Three proven plays: (1) Bundle offers calibrated to the next price tier — e.g. medspa's "HydraFacial $150" upsells to "HydraFacial + BioRePeel $474"; (2) Retail attach at checkout — beauty + nails get 15-25% AOV lift; (3) Tier-membership thresholds that unlock perks at specific spend levels (incentivizes hitting the tier).

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Related concepts

Customer Lifetime Value Repeat Purchase Rate Cohort Retention Rfm Segmentation