When talking about the Average Purchase Value, it is referred to the average sales value of each processed sales transaction. Basically, it shows you what’s the average amount that is currently spent on one of your products or services, in an individual transaction.
Depending on, for example, the length of the average contract or your business model, you can calculate the Average Purchase Value for a day, a week, a month, a year, or even in regard with the overall contract – in case there is one.
Formula Total ($) Value of Orders / (#) of Orders over a Defined Period = ($) Average Purchase Value
Basically, this metric helps the team that manages a certain business to predict the future of their sales and come up with revenue projections as well. A careful analysis of the Average Purchase Value will reveal the purchasing behavior of your consumers.