SaaS Average Order Value (AOV) Calculator

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SaaS Average Order Value (AOV)

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Total Revenue $0.00

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The Average Order Value (AOV) is calculated by dividing the total revenue by the number of orders placed. This metric helps understand the average amount spent per order by your customers.

How to Calculate SaaS Average Order Value (AOV)

To determine your SaaS average order value (AOV), consider the following steps:

Determine your total revenue. This is the total amount of money made over a given period from the sales of your SaaS product. A small SaaS company, for instance, might make $20,000 a month, whereas a larger one might make $500,000.
Find out the number of orders placed. This is the total number of individual sales or subscriptions during the same period as the total revenue. For example, you would use 500 sales if you had any, while a larger business might have 5,000 sales.
The total revenue is divided by the number of orders placed. This is the last step in figuring out your AOV. Based on the abovementioned instances, an AOV is $40 ($20,000 / 500 orders) and $100 ($500,000 / 5000 orders) for a larger business.

Note: Make sure that the time period for both Total Revenue and Number of Orders Placed are identical, whether that be monthly, quarterly, or yearly to ensure accurate results. AOV is not a fixed number and should be tracked over time.

SaaS Average Order Value (AOV) = Total Revenue / Number of Orders Placed

What is Average Order Value (AOV) in SaaS?

The average amount spent by each customer is determined by the Average Order Value (AOV). AOV in the SaaS industry is calculated by dividing total revenue by order volume. This metric, which offers insights into the revenue gained from each transaction, is essential for creating pricing and sales strategies. A higher AOV typically corresponds to more earnings per sale.

Increase sales by using SaaS AOV analysis to identify upselling and cross-selling opportunities.
Determine the optimal price points based on SaaS AOV to optimize pricing strategies.
Effectively assess marketing ROI by monitoring SaaS AOV across several channels.

Practical Examples of SaaS Average Order Value

Example 1: A software company offers three different subscription plans: Basic at $50/month, Standard at $100/month, and Premium at $200/month. If 10 customers choose Basic, 15 choose Standard, and 5 choose Premium in a month, the AOV can be calculated as: [(10 * $50) + (15 * $100) + (5 * $200)] / (10 + 15 + 5) = $5000 / 30 = $166.67.
Example 2: An online service sells productivity tools and gains 50 sales totaling $4500 in revenue for a month. The Average Order Value would be calculated by dividing the total revenue by the number of orders: $4500 / 50 = $90. This reflects the average amount spent per order.
Example 3: A cloud storage company has different add-on features that users can purchase along with their subscription. In one month, transactions include 20 purchases of $120, 30 of $150, and 50 of $180. The AOV is calculated as [(20 * $120) + (30 * $150) + (50 * $180)] / 100 = $17400 / 100 = $174.

Time Period	Total Revenue	Number of Orders	Average Order Value (AOV)	AOV Change	AOV Change (%)
Month 1	$50,000	1000	$50	–	–
Month 2	$60,000	1100	$54.55	+$4.55	+9.1%
Month 3	$75,000	1200	$62.50	+$7.95	+14.6%

Trend Analysis: The average amount spent per order is rising, as seen by the data’s positive trend in AOV from Month 1 to Month 3. This can be the result of clients buying more expensive plans, a shift in pricing strategy, or effective upselling initiatives. Monitoring these shifts is essential to comprehending how your marketing and sales initiatives affect the operation of your company as a whole.

AOV = $75,000 / 1200 = $62.50

Different Ways to Calculate Average Order Value (AOV)

Basic AOV: Determine the entire amount of money made from an order and divide that amount by the quantity of that order. This gives information on the typical transaction value.
AOV by Segment of Customers: To find high-value clients, divide the total income attributed to a particular customer segment by the number of orders from that segment.
AOV by Period: To examine performance patterns over time, divide the total income for a certain period (such as a month or a quarter) by the total number of orders placed during that time.
AOV by Product Category: To evaluate the profitability of a product category, divide its income by the quantity of products sold in that category.

How to Improve Your SaaS Average Order Value (AOV)

Focus on making the cart page as efficient as possible: Make sure there aren’t any extra procedures or needless distractions that can discourage a buyer from completing their transaction.
Improve your cart page’s design to encourage clarity: Use basic, clean designs emphasizing shipping details, total pricing, and a call to action to continue to the checkout page.
Put in place prompts to finish the purchase: These may be notifications that nudge customers to continue or the strategic positioning of checkout buttons.
Clearly show the billing and delivery details: To lower the possibility of mistakes and abandoned carts, ensure these details are simple to enter and validate.