Retention

AOV

Average Order Value — the mean revenue per order. Lifting AOV through bundling, free-shipping thresholds, or post-purchase cross-sell is often the cheapest way to improve ROAS without touching ad spend.

Related Terms

Retention→

LTV

Lifetime Value — the total profit a customer is expected to generate across their relationship with the brand. We model it from repeat purchase rate and average order value, and use it to set an affordable CAC.

Measurement→

CVR

Conversion Rate — the share of clicks (or sessions) that produce a conversion. CVR splits the work between the ad and the landing page; a strong ad with weak CVR points you to fix the page, not the creative.

AOV

LTV

CVR

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