AVERAGE ORDER
FREQUENCY

Average Order Frequency (AOF) measures how often customers make purchases from your business.

It's a vital metric that helps you understand customer buying behavior and loyalty.

By knowing how frequently customers place orders, you can tailor your marketing strategies to keep them coming back and increase overall sales.

Why is it important to measure?

  1. Knowing how often customers buy lets you create strategies to encourage more frequent purchases, which can lead to higher revenue.
  2. It helps you understand and improve customer loyalty. The more often they buy, the more likely they are to stay loyal.
  3. It can help you design targeted marketing campaigns. You can send special offers or reminders to customers who haven't bought in a while.
  4. By knowing customer buying patterns, you can provide better service and personalized experiences, making customers feel valued and satisfied.
This is the total amount of orders over a specified period of time. Most commonly 1 year.
These are the total amount of customers in that same period. Keep consistency across the timeline.

The average amount of times a customer puts in an order is X.
You can use this outcome to calculate your Average Customer Value.