Average Order Value dropping in repeat orders

One problem watch for with your repeat purchases is the average order value (AOV) dropping on repeat purchases.

For the most part your AOV should be holding steady or increasing as specific customers buy again and again. If it's dropping, that's a sign of a potential problem that you'll want to look into.

This is also a symptom of heavy discounts to repeat customers, some who might have bought at the regular price.

There are exceptions. If you sell something durable that needs replenishment, you'll see a higher than normal first order (e.g. buying equipment) and then smaller repeat orders (e.g. buying refills). Even then though you should see AOV steady or trend upwards in the replenishment orders.

If you need help checking the AOV on repeat orders, that's included in the Customer Purchase Latency report in Repeat Customer Insights.

Eric Davis

Retain the best customers and leave the worst for your competitors to steal

If you're having problems with customers not coming back or defecting to competitors, Repeat Customer Insights might help uncover why that's happening.
Using its analyses you can figure out how to better target the good customers and let the bad ones go elsewhere.

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Topics: Average order value Repeat purchases

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