What is Average Abandonment Order Value in App?
The Average Abandonment Order Value in App pertains specifically to the average monetary value of all the orders which are added to cart but are not converted into a purchase within a mobile app environment. It is a significant Key Performance Indicator (KPI) for e-commerce analysts, primarily for a direct measure of potential lost revenue and consumer behaviour.
Formula
Average Abandonment Order Value in App = Total Value of Abandoned Orders / Number of Abandoned Orders
Example
If an e-commerce business has a total abandonment order value of $1000 from 20 customer abandons in a day, then the average abandonment order value for that day would be $1000/20 = $50
Why is Average Abandonment Order Value in App important?
The Average Abandonment Order Value in App is a sensor of potential loss, providing insights behind shopping cart abandonment, and often identifying customer pain points in the buying process. An above-average value signals low conversion rates, indicating a problem with the checkout process, pricing strategy, or user interface.
Which factors impact Average Abandonment Order Value in App?
Key factors include the complexity of navigation, mobile app design, loading speed, customer support responsiveness, abandoned cart recovery efforts, and overall user experience.
How can Average Abandonment Order Value in App be improved?
Improvements can be achieved by optimizing the mobile app customer journey, offering multiple secure payment options, simplifying the checkout process, and crafting effective recovery campaigns and customer-based incentives.
What is Average Abandonment Order Value in App’s relationship with other metrics?
The Average Abandonment Order Value in App is closely related to other ecommerce metrics such as bounce rates, conversion rates, and customer retention rates. An increase often signals a decrease in conversion rates, and consequently, lower revenue.
