## What is Average Order Value?

Aliases: *AOV*

Average order value (AOV) is frequently used in A/B tests where the intervention is aimed at increased the revenue from each order and not necessarily the number of orders / proportion of people who purchase. AOV is a non-binomial metric computed as any other arithmetic mean: the sum of the total revenue from all relevant orders is divided by the number of orders.

The same metric is sometimes called **average purchase value** (APV) or **average revenue per transaction** (ARPT). As with any other continuous metric it requires a bit more work in order to estimate the standard deviation while planning a test and also the entire data set after the test is completed.

Average order value is also used as a secondary KPI or co-primary KPI next to a primary (conversion rate KPI, however it usually makes more sense to use average revenue per user instead.

Like this glossary entry? For an in-depth and comprehensive reading on A/B testing stats, check out the book "Statistical Methods in Online A/B Testing" by the author of this glossary, Georgi Georgiev.