← GlossaryUnit economics
AOV
Also known as · Average Order Value
Total revenue divided by total orders for a period.Average order value (AOV) is the mean revenue per transaction. Raising AOV (bundles, upsells, premium tiers) is one of the three primary growth levers — alongside conversion rate and customer count. A higher AOV creates room for higher CAC.
Related terms
Other unit economics terms.
CAC
Total marketing + sales spend divided by new customers acquired.
LTV
Total value a customer delivers over the duration of their relationship.
MRR
Total predictable monthly subscription revenue across all active customers.
ARR
MRR multiplied by 12 — the annualized run rate of subscription revenue.
Churn Rate
Percentage of customers who cancel or fail to renew in a given period.
Let's get started
Stop guessing. Start compounding.
Tell us what's broken. We'll come back inside 24 hours with a plan — not a pitch deck.