Understanding Average Order Value Store Insights: A Guide for Shopkeepers

Understanding Average Order Value: A Guide for Shopkeepers #

Hello, shopkeeper! Maximizing profits and maintaining a competitive edge in retail requires more than just selling products—it’s about understanding customer behavior and leveraging key metrics. One of the most critical metrics is the Average Order Value (AOV). Tools like Ficos make it easier than ever to calculate, analyze, and explore AOV alongside related insights, giving you actionable information about your store’s performance. Let’s dive into why AOV matters and how to use the Ficos dashboard effectively.

What Is Average Order Value? #

Average Order Value (AOV) is a key performance indicator that measures the average amount spent by a customer per transaction. The formula is straightforward:

AOV = Total Revenue / Number of Orders

This metric provides valuable insights into your customers’ purchasing patterns. The Ficos AOV dashboard goes further, helping you explore:

• Spending Patterns: Understand the typical transaction value in your store.
• Order Composition: See the average number of items per order.
• Discount Impact: Compare AOV for orders with and without discounts.
• Performance Over Time: Track how AOV changes across different periods.

Ficos simplifies this analysis, presenting AOV data and related details in an easy-to-understand, interactive format.

Why AOV Insights Matter #

Tracking and analyzing AOV is essential for making informed decisions in various areas of your business. Here’s why:

• Boost Profitability: Increase revenue without necessarily needing more customers by encouraging larger purchases.
• Strategic Pricing & Promotions: Evaluate the effectiveness of discounts and pricing strategies by comparing AOV for discounted vs. non-discounted orders.
• Targeted Marketing: Understand which products, categories, or customer spending habits contribute most to revenue, helping you tailor campaigns.
• Inventory Management: Identify products frequently purchased together or those driving higher value orders to optimize stock levels.
• Customer Behavior Analysis: Identify your top-spending customers and understand typical order values to better cater to their preferences.

How to Access the Average Order Value Dashboard #

Getting to the AOV Dashboard in Ficos is easy. Follow these steps:

1. 1. Step 1: On the home screen, tap the ‘View Analytics’ link below the ‘Today’ dashboard summary.

1. 1. Step 2: This will take you to the Store Analytics page.

1. Step 3: On the Store Analytics screen, look through the list of available insights and tap on ‘Average Order Value’.

Using this dashboard, you can explore trends, compare metrics, and identify opportunities to enhance your sales strategies.

Exploring the Average Order Value Dashboard #

The Average Order Value dashboard provides a comprehensive look at your AOV performance across different timeframes and dimensions.

Selecting Your Time Period #

At the top, you can easily switch between different reporting periods:

• Last 7 Days
• Last 30 Days
• Last 90 Days
• Last 180 Days

Choosing a period updates all the data presented in the dashboard for that specific timeframe.

Navigating Data Views #

Within each selected time period, the dashboard organizes information into several convenient tabs:

1. 1. Overview Tab:
      • Displays key summary metrics: Total Sales, Total Orders, Average Order Value (AOV), Average Items per Order, AOV for Discounted Orders, and AOV for Non-Discounted Orders. Values are often displayed concisely (e.g., 1.5k, 2M).
      • Features an AOV Trend Chart (line chart) showing how your AOV has changed over the selected period (daily, weekly, or monthly trend depending on the period length).

1. 1. Time Analysis Tab:
      • Presents an AOV by Day of the Week Chart (bar chart) showing the calculated AOV for each day (Sunday to Saturday) during the selected period.
      • Includes a table detailing the AOV and total number of orders for each day of the week.

1. 1. Value Distribution Tab:
      • Features an Order Value Distribution Chart (pie chart) that groups your orders into several value ranges (buckets, e.g., < 50, 50-250, > 5k). These buckets are dynamically generated based on your order data for the period.
      • Provides a table showing the number of orders and the percentage of total orders falling into each value bucket.

1. 1. Products Tab:
      • Lists your Top Products ranked by their total sales value during the selected period.
      • Shows the product name and the total sales generated by each. The list is paginated if there are many products.

1. 1. Categories Tab:
      • Lists your Top Product Categories ranked by their total sales value during the selected period.
      • Shows the category name and the total sales generated by each. The list is paginated.

1. Customers Tab:
   • Lists your Top Customers ranked by their total spending during the selected period.
   • Displays the customer’s name, their total spend, and their calculated AOV for that period. The list is paginated.

If there isn’t enough data for a specific chart or section (e.g., no orders in the period), the dashboard will indicate that clearly.

Leveraging Actionable Insights #

Below the main data tabs, the dashboard includes a valuable AOV Summary card and an Actionable Insights section.

AOV Summary Card #

This card recaps the most important metrics for the selected period at a glance:

• Average Order Value
• Average Items per Order
• Total Orders
• Total Sales

Actionable Insights Section #

Based on the data analyzed for the chosen period, Ficos automatically generates helpful suggestions and observations, such as:

• Comparing your current AOV to longer-term trends.
• Analyzing the difference in AOV between discounted and non-discounted orders.
• Identifying the day of the week with the highest AOV.
• Highlighting the proportion of orders falling into high-value buckets.
• Suggesting ways to leverage top products or categories to potentially increase order values.

These insights provide practical starting points for refining your sales strategies.

Tips for Using AOV Insights #

Here are some ways to apply what you learn from the AOV dashboard:

• Identify Upsell/Cross-sell Opportunities: Use the Top Products and Categories data to see which items could be bundled or complemented with add-ons.
• Optimize Promotions: Check the AOV for discounted vs. non-discounted orders and the Value Distribution chart. Are discounts encouraging larger baskets, or just reducing the value of typical orders? Consider thresholds for discounts.
• Refine Staff Training: If certain days show higher AOV (Time Analysis tab), ensure staff are prepared to handle potentially larger or more complex orders then. Highlight top products during peak times.
• Target High-Value Customers: Use the Top Customers list to identify key shoppers. Consider personalized communication or loyalty rewards for this group.
• Monitor Trends: Regularly check the AOV Trend chart across different time periods (7d, 30d, 90d) to spot changes in spending behavior early.

Conclusion #

Understanding your store’s Average Order Value empowers you to make data-driven decisions, optimize your sales strategies, and increase profitability. By leveraging the detailed Ficos AOV dashboard, you gain access to insights on overall performance, trends over time, daily patterns, order value distribution, top products, categories, and customers. Use these insights to create effective marketing campaigns, refine promotions, manage inventory smartly, and keep your business thriving. Ready to get started? Explore the Ficos documentation today and unlock your store’s full potential.

What our clients say #

I have managed to track my expenses better and been able to budget and plan better

Nayebare Jenuario #

★★★★★

Business has never been managed better on an app than with Ficos! No hardware costs, no implementation costs, the LOWEST cost of ownership and business intelligence at your finger tips! Thx Ficos team

Fort High #

★★★★★

Excellent app Very useful for business

Christian TABARO #

★★★★★