AOV & MoM AOV & monthly growth
Understand AOV (Average Order Value) and MoM (Month-over-Month): reliable calculations, business interpretation and simple alerts.
Useful definitions
Examples of how to read AOV and monthly growth depending on your activity.
AOV
Measures sales effectiveness. Interpret with order volume, returns/credits and product mix.
MoM
Detects acceleration or slowdown. Read with seasonality and events (promos, launches).
Reliable computation
Everything depends on correct date/amount parsing. Then: monthly aggregation and consistent comparisons.
Steps
- Normalize dates/amounts
- Build AOV (order_id)
- Monthly aggregation
- Compute MoM
Interpretation
If AOV rises but MoM drops, it’s often a volume issue. If MoM rises but margin drops, watch promos.
Example use cases
Concrete examples to interpret average order value and monthly revenue change.
E-commerce / DTC
Track average order value and monthly revenue to separate volume effects, price effects and promotion impact.
Independent / Services / Education
Compare months, offers or clients to spot growth, a slowdown or an excessive dependency.
Retail / Multi-store
Analyze changes by store or area to understand where growth is solid and where it is weakening.
FAQ
Quick answers about AOV, average basket and MoM.
What exactly is AOV?
AOV is revenue divided by the number of orders. It requires an order identifier.
Average basket vs AOV?
Average basket can be computed per line; AOV is strictly per order.
How do you compute MoM?
(Month N - Month N-1) / Month N-1, on a consistent monthly base.
How do you interpret AOV and MoM together?
AOV is value, MoM is momentum. Divergences reveal signals (volume, promos, mix).