Average Order Value (AOV) represents the average monetary value of orders placed by clients within a specific time frame. It is calculated by dividing the total revenue generated by the number of orders. AOV helps companies understand customer purchasing behavior, optimize pricing strategies and increase profitability.For example, consider a B2B software company that offers subscription-based project management software.In a given month, they have 100 customers, and their total revenue from subscription fees is $10,000.To calculate the AOV, we divide the total revenue by the number of customers: $10,000 / 100 = $100.This means that, on average, each customer generates $100 in revenue for the company.