Average Order Value (AOV) in SaaS
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SaaS Average Order Value: Calculation, Forecasting, and Management
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Podcast created by NotebookLM by Google
This article explores the concept of Average Order Value (AOV) in SaaS businesses and its role in unit economics. The author explains the key differences between AOV in unit economics, finance, and accounting, as well as how to calculate it correctly. The article provides a formula for AOV calculation, illustrated with practical examples, and discusses factors that influence its fluctuation. Additionally, it demonstrates how businesses can forecast AOV and optimize it without increasing subscription prices—by strategically adjusting pricing plans and customer distribution. The article also highlights marketing tools for increasing AOV and provides actionable insights on how to leverage them effectively.
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