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AOV

AOV stands for Average Order Value. It is a key metric used in e-commerce and marketing to determine the average amount of money spent by customers each time they place an order on a website or store. AOV is calculated by dividing the total revenue generated by the total number of orders placed within a specific time period. AOV is essential for businesses as it helps in evaluating the performance of marketing campaigns, pricing strategies, and customer retention efforts. A high AOV indicates that customers are spending more money per order, while a low AOV may indicate that customers are not making large purchases. By understanding AOV, businesses can make informed decisions to increase their revenue and profitability.