What average order value during sales really tells you
The short answer
Divide revenue by orders for sale periods and for everything else, then compare the two to see average order value during sales against full-price weeks. Split the gap into units per order and price per unit. A higher sale AOV often comes from more units at lower prices, so check margin per order too.
Promotion impact on AOV, worked through
Why it matters
A bigger basket during sales looks like a win, but it can hide lower margin per order and customers stocking up who then skip their next full-price visit. Comparing AOV and margin per order shows whether sale periods grow value or only move it around.
The question to ask
Copy this into Lexi as written.
How to work it out
1. Split the orders. Tag each order as placed during a sale period or outside one, over the past year.
2. Calculate AOV and drivers. Work out AOV, units per order, average price per unit and margin per order for each group.
3. Check what happens next. Compare how soon sale buyers order again at full price with their usual gap.
What the answer looks like
Illustrative output on sample data
Illustrative example: how Lexi answers this for an apparel retailer. It compares a year of online orders in and out of sale periods.
- Sale periods: average order value (AOV) $110, 3.2 units per order, $46 margin per order
- Outside sales: AOV $90, 1.8 units per order, $50 margin per order
What the data shows
Sale baskets are 22% bigger but earn less margin, because customers buy more units at lower prices.
What it means
Customers who stocked up in the summer sale took 40 days longer than usual to place their next full-price order.
What to do
Judge sales on margin per order and the next full-price purchase, along with AOV.
Would you like to see what sale buyers did next?
Frequently asked questions
How do I increase average order value without hurting margin?
Lift units and price per order through relevance before discount. Show complementary items at checkout, set free-shipping thresholds a little above current AOV and bundle naturally paired products. Measure margin per order as well as AOV, so a bigger basket does not hide a smaller profit.
Why can a higher sale AOV be misleading?
Sale baskets often hold more units at lower prices, so the order is bigger while the margin on it is smaller. Customers may also stock up and skip their next full-price visit. Compare margin per order and the timing of the next purchase before calling a bigger sale basket a win.
Should store orders be included in the comparison?
Yes, wherever you can tag them by sale period. Store baskets during sales can behave differently from online ones, with more impulse buying. Report each channel separately as well as combined, so a shift in channel mix during sales does not distort the comparison.