Average order value (aka AOV)

9 Oct

Average Order Value = Total revenue from orders / Total number of orders
and the revenue only comes from customers who actually convert.
the basic conversion rate equation is

conversion rate = total number of visitor who take an action / Total number of visitors

Two elements controls the success of paid online advertising campaigns

1. The cost associated with running the campaigns.
2. The revenue generated by the campaign as determined by its conversion rate and revenue generated by a conversions.

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