Plain-language questions
Ask for average order value per month, customer or product in the SQL Explorer with AI. The AI writes the SQL, you see the query and run it yourself; the AI only receives metadata.
KPI · E-commerce
Average order value: formula and example.
Average order value (AOV) is revenue for a period divided by the number of orders in that period. It tells you how much a customer spends per purchase on average. Together with order volume, average order value explains every change in revenue: more orders, bigger orders, or both.
Average order value formula
Revenue ÷ number of orders
Worked example
In September, Acme Groothandel processes 1,280 web shop orders worth €192,000 in total, excluding VAT and shipping. Average order value is €192,000 ÷ 1,280 = €150.
Fictitious figures for Acme Groothandel, a sample wholesaler.
How to read this KPI
A rising average order value means customers are buying more items, or more expensive ones, per order, for example because of bundles, a free-shipping threshold or a price increase. Compare it with the same month last year and split it by channel or customer segment, as business customers order differently from consumers. Always read it alongside order volume: a higher AOV with far fewer orders can still mean less revenue.
Pitfalls with average order value
- Including VAT or shipping charges, so the figure no longer ties back to the accounts.
- Leaving cancelled and fully returned orders in, which inflates the average.
- A handful of very large B2B orders pulls the average up; check the median as well.
SQL & DAX
Calculating average order value in SQL and DAX
Two examples on a fictitious data warehouse for Acme Groothandel: a PostgreSQL query and a measure for a Power BI model. Adjust table and column names to your own model.
SELECT date_trunc('month', order_date) AS month,
COUNT(*) AS orders,
SUM(total_amount) AS revenue,
ROUND(SUM(total_amount) / NULLIF(COUNT(*), 0), 2) AS average_order_value
FROM orders
WHERE status <> 'cancelled'
GROUP BY 1
ORDER BY 1;Average Order Value =
DIVIDE(
SUM(Orders[total_amount]),
DISTINCTCOUNT(Orders[order_id])
)In ENABLE
Tracking this KPI in ENABLE
In your Power BI dashboard
Define the KPI as a measure in your Power BI model and show it in the portal, with "Last refreshed" next to it. Access profiles and optional row-level security decide who sees which figures.
Custom dashboards (pilot)
Add the KPI as a tile to a custom dashboard, compared with last year. The Dashboard Builder is a pilot and can be switched on per client.
Monthly targets
With the built-in Targets app you set a target for the KPI per month, so you see actuals and target side by side.
FAQ
Frequently asked questions
How do you calculate average order value?
Divide revenue for a period by the number of orders in the same period. Use revenue excluding VAT and leave out cancelled orders so the figure matches your accounts. With €50,000 in revenue from 400 orders, average order value is €125.
What is the difference between average order value and revenue per customer?
Average order value looks at a single order; revenue per customer adds up all of a customer's orders. A customer who places three €100 orders has an AOV of €100 and revenue per customer of €300. For value across the whole relationship, use customer lifetime value.
How can you increase average order value?
Common levers are bundles, recommendations for complementary products, volume discounts and a free-shipping threshold. Measure the effect by comparing AOV before and after the change, alongside conversion rate and margin. A higher order value bought with extra discount can actually lower your margin per order.
Further reading
- KPI libraryE-commerce KPIs: formulas and examplesE-commerce KPIs cover visitors, orders, returns and margin per channel. The data comes from your web shop, marketplaces and payment provider, alongside purchasing and stock from your ERP.Read more
- ResourcesHow to build a KPI dashboard: steps and examplesA KPI dashboard is an overview of the key figures you use to steer towards your goals, such as revenue, margin, on-time delivery or absenteeism. A good KPI dashboard does not start with the software, but with the decisions it needs to support. You then choose a limited number of KPIs, define them, sketch the dashboard and only then build it.Read more
- SolutionPower BI dashboard portal: share dashboards securelyShare your Power BI dashboards securely in your own portal, with role-based access.Read more
Use AI on your own data. Securely, and without the headache.
In an online demo we show how ENABLE makes your data securely available and how you build on it: describing an app in the AI Builder, plain-language questions, dashboards and APIs. And how we set it up and manage it for you.