Understanding your Average Order Value (AOV) by Order Number is a pivotal aspect of e-commerce analytics. This guide will take you through the process of viewing and analyzing AOV using the Shopify app, By the Numbers.
Decoding Key Terms
Before we begin, let’s go over some key definitions to ensure we have a clear understanding of the terminology used:
- Order Number: Categories defined by the Nth order customers have placed. For example, ‘1st Order’ includes customers who have placed one order while ‘5th Order’ includes customers on their fifth order.
- AOV: Average order value. The total sales in an order number class are divided by the number of orders in that class.
- Customers: The total number of distinct customers in an order number class.
Getting Started with Sales by Order Number Analysis
To get started with analyzing sales by order number, you’ll need to install By the Numbers. If you haven’t already, don’t worry, the app offers a 14-day free trial with no credit card required, so you’re free to experiment with it.
Once you have installed the app, launch it and navigate to the ‘Reports’ page. There, you should see ‘Sales By Order Number‘ – click on it to open it up. You should see something like this:
This report provides the following information:
- The number of customers who make a 1st, 2nd, 3rd, 4th… order
- The amount of revenue generated from 1st, 2nd, 3rd, 4th… orders
- How your AOV changes based on the order number
By analyzing sales by order number, you can easily determine how much repeat orders are worth. This information helps you decide how much to spend to reactivate a customer.
Enhancing Customer Acquisition Strategy with By the Numbers
By the Numbers is more than just a tool for analyzing sales by order number. It’s a comprehensive suite for enhancing your customer acquisition strategies. For instance, the Cohort Retention Report is another invaluable feature, offering deeper insights into your sales data and customer behavior over time.
By integrating these analyses into your business strategy, you can make more informed decisions, leading to improved customer acquisition and revenue growth.