Average Order Value Uplift
Average order value is defined as the total value of the orders divided by the number of orders. If you are running personalization campaigns in industries like e-commerce, you would want to know how much extra value was created due to personalization, in terms of the actual order value. In A/B tests, you have an existing version called the control group and personalization is a variation of it. AOV uplift is the metric that gives you the net increase in the average order value of your test group against the control group. It is usually given in monetary terms or as a percentage.
Why Should You Track Average Order Value Uplift?
While A/B testing, both the A version and B version will have different conversion rates and hence the order values will be different. In a best-case scenario, the personalized version should have a better average order value than the standard version. Tracking AOV uplift and optimizing your personalizations accordingly will directly contribute to better revenue and higher ROI from your campaigns.