---
updatedAt: 2025-03-20T13:03:46.000Z
agentTools:
  projectIndex: https://triplewhale.readme.io/llms.txt
---

# True Average Order Value

true_aov

# Overview

True Average Order Value (True AOV) is the average order value (minus shipping and taxes) for orders with a non-zero (positive) revenue.

> 📘 True AOV = (Non-Zero Order Revenue - Shipping - Taxes) / Orders

The calculation is based on data from the [Orders](https://triplewhale.readme.io/docs/orders-table) table.

### Detailed Breakdown

The formula above is derived from the following components:

Non-Zero Order Revenue = `SUM(IF(order_revenue > 0, order_revenue, 0))` --> [Orders](https://triplewhale.readme.io/docs/orders-table) table\
Shipping = `SUM(shipping_price)` --> [Orders](https://triplewhale.readme.io/docs/orders-table) table\
Taxes = `SUM(taxes)` --> [Orders](https://triplewhale.readme.io/docs/orders-table) table\
Orders = `SUM(orders_quantity)`  --> [Orders](https://triplewhale.readme.io/docs/orders-table) table

# Insights and Actions

True Average Order Value (True AOV) offers a refined look at the revenue generated per order, accounting only for profitable transactions. Efficiently leveraging True AOV data can guide strategic business decisions:

* **Optimize Pricing Strategies**: Analyze True AOV alongside customer feedback and market trends to adjust pricing, ensuring it aligns with value perception and demand.
* **Tailor Marketing and Promotions**: Develop targeted promotions that encourage higher-value purchases, focusing on products or bundles that can boost True AOV.
* **Enhance Product Mix**: Identify which products or categories contribute most to True AOV and consider expanding these lines or featuring them more prominently in marketing efforts.
* **Improve Customer Segmentation**: Use True AOV to segment customers based on their spending behavior, customizing marketing messages to encourage repeat high-value purchases.

# Example Use

### Prompt

> What's my true AOV over the last 90 days?

### Response

![](https://files.readme.io/63c60fcc6ba4a42613cca15d761f5abdc488bea38aa467c47f2c4c3bfe2da3d8-image.png)

### Query

```sql
SELECT
  COALESCE(
    SUM(ot.order_revenue - ot.shipping_price - ot.taxes) / NULLIF(
      COUNT(
        CASE
          WHEN ot.order_revenue > 0 THEN 1
        END
      ),
      0
    ),
    0
  ) AS true_aov
FROM
  orders_table AS ot
WHERE
  ot.event_date BETWEEN CURRENT_DATE() - 90 AND CURRENT_DATE()  - 1
ORDER BY
  true_aov DESC;
```