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Unit economics series: Average order value (AOV) and SEO

Posted on
April 24, 2023
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Today, businesses are seeking better strategies to improve their growth strategy. When it comes to unit economics and digital marketing, there are two key points that businesses should focus on: Average Order Value (AOV) and Search Engine Optimization (SEO). In part three of this Segment SEO blog series on unit economics, we'll look into the role of SEO in improving AOV.

What is average order value?

AOV measures the average amount customers spend per sales transaction, while SEO focuses on the optimization of websites to improve visibility in search engine results. In this Segment blog series on unit economics, we'll take a look at the dynamic relationship between AOV and SEO, and explore how applying SEO best practices can help improve AOV across the eCommerce industry and beyond.

Why is AOV important to measure?

Average Order Value (AOV) serves as a crucial metric for businesses in various sectors. It quantifies the average monetary value of customer transactions and directly impacts a company's bottom line. Irrespective of the industry, businesses strive to increase AOV as it drives profitability and fuels revenue growth. By relying on SEO tactics, websites can attract relevant traffic to their products and services, engaging customers who are more likely to make higher-value purchases.

The impact of SEO on AOV

SEO plays a key role in augmenting AOV by directing targeted and qualified traffic to a website. When businesses optimize their websites for better SEO, they can expect to see an improvement in keyword rankings, thus impacting their visibility on Google and other search engines. This eventually contributes to more traffic and transactions, helping to improve order value.

Strategic keyword research and targeting

An effective SEO strategy commences with meticulous keyword research and targeting. By identifying the keywords and phrases potential customers use to search for products or services, businesses can optimize their website content accordingly. Aligning product and services offerings with targeted keywords enables businesses to attract users with a stronger purchase intent, resulting in improved AOV.

Content optimization for better relevance

Creating valuable, informative, and engaging content is vital for both SEO and AOV optimization. By developing high-quality content that addresses customer pain points and challenges, businesses position themselves as trusted authorities within their industry. Optimizing content with relevant keywords enables search engines to comprehend the relevance of the website to specific search queries, increasing the likelihood of attracting qualified traffic that is more inclined to generate higher-value orders.

Seamless user experience

A seamless user experience and effective conversion optimization are pivotal for maximizing AOV. SEO and AOV optimization go hand-in-hand when it comes to website design, loading times, and ease of navigation. By ensuring a seamless experience for site visitors, businesses can encourage customers to explore additional products and make larger purchases. Thoughtful promo placement of upsells, cross-sells, and personalized product recommendations further enhances the overall user experience, positively impacting AOV.

Analytics tracking

To truly harness the power of SEO in boosting AOV, businesses must continuously monitor and analyze data. Leveraging tools like Google Analytics, businesses gain invaluable insights into customer behavior, conversion rates, and AOV trends. This data-driven approach empowers businesses to identify areas for improvement, refine their SEO strategies, and make informed decisions to drive higher AOV.

Quick tip: How to calculate AOV

Average Order Value (AOV) is a metric that calculates the average amount of revenue generated per order or transaction. AOV is calculated by dividing the total revenue generated by the number of orders.

Calculating AOV is pretty simple. Here's the direct formula:

AOV = Total Revenue / Number of Orders

For example, if your eCommerce store generated $50,000 in revenue from 500 orders in a certain month, your AOV would be:

AOV = $50,000 / 500 = $100

How Segment SEO can help

Understanding the link between AOV and SEO is essential for sales and marketing teams. Segment, an award-winning agency, can help develop an SEO foundation that focuses on customer and revenue growth. SEO strategies like keyword research, content optimization, link building, and more, businesses can attract quality traffic, enhance customer engagement, and elevate AOV.

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