Average order value (AOV) is calculated by dividing the total value of orders by the number of orders placed. When executing personalization campaigns, particularly in sectors like e-commerce, understanding the additional value generated as a result of personalization is crucial in terms of actual order value. In A/B tests, where there’s an existing version known as the control group and personalization serves as a variation of it, AOV uplift emerges as the metric indicating the net increase in the average order value within the test group compared to the control group. This metric is typically presented in monetary terms or as a percentage.

Why is it Important to Monitor Average Order Value Uplift?

During A/B testing, both versions (A and B) will exhibit varying conversion rates, resulting in disparate order values. Ideally, the personalized version should demonstrate a superior average order value compared to the standard version. By tracking AOV uplift and refining personalization strategies accordingly, you can directly enhance revenue generation and attain a higher return on investment (ROI) from your campaigns.