totalspendperpurchase

Total spend per purchase, sometimes referred to by the shorthand totalspendperpurchase, is a metric used in ecommerce and retail analytics to quantify the average amount of money spent per transaction. It is calculated by dividing total revenue by the number of purchases or orders within a defined period or segment. In formula terms: total spend per purchase = total revenue / number of purchases.

The metric is commonly known in the industry as the average order value (AOV) and can be computed for different scopes, such as for all customers in a period, for a specific customer segment, or for individual customers. It provides a straightforward view of transaction size and is often used to assess pricing strategies, promotional effectiveness, and product mix.

Interpretation of the result is straightforward: a higher total spend per purchase indicates larger average transaction sizes, which can reflect strong upselling, desirable product offerings, or successful pricing. Conversely, a lower value may signal the need to optimize product bundles, discounts, or checkout experiences.

Related metrics include revenue per visitor (RPV) and customer lifetime value (CLV). Total spend per purchase should be considered alongside volume metrics (number of orders, traffic) and external factors such as seasonality, discounts, refunds, and currency conversions. Ensure consistent definitions when comparing periods, and decide whether refunds and discounts are included or excluded to avoid distortions. Example: if weekly revenue is $50,000 across 1,000 orders, total spend per purchase is $50.