Average Cart Value is the average value of all the orders on your site.
Example
If 9 people purchase a $10 product and 1 person purchases a $110 product your ACV is $20.
Nine orders of $10 each =$90 plus one order of $110 equals $200. Divided by number of customers (10) = $20
Why does ACV matter?
- This will tell you how much you can afford to spend to acquire a customer. If your average cart value is $20 you can afford to spend up to $20 per customer and still break even.
- If you can raise your ACV you can increase your revenue without spending any more time and money on sales, marketing, advertising or product development.