Average Purchase Value

Measure the average value of purchase orders.

Sales KPI Examples | Average Purchase Value

Overview

The Average Purchase Value KPI measures the average value of each purchase order your sales team processes. This KPI is used to quantify the potential dollar opportunity associated with each lead and help you to accurately predict the value of a win.

This KPI can be combined with a number of other KPIs and metrics to provide a clear picture of consumer purchase behaviours. For instance, consider pairing this KPI with the units per transaction KPI to help your supply chain accurately forecast inventory levels.

Key terms

  • Purchase order: A document used to indicate the type of product ordered, number of units, and agreed upon prices.
  • Purchase value: The total dollar value of a purchase order.
  • Units per transaction: The number of units sold in a purchase order.

Success indicators

  • An increase in order value.
  • An increase in order frequency coupled with stable or increasing purchase value.

Monitoring Sales KPIs on a Dashboard

Once you have established benchmarks and targets for measuring Average Purchase Value, you’ll want to establish processes for monitoring this and other sales KPIs. Dashboards can be critical in this regard. Read more

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