Average Abandonment Order Value in App is the sum total value of abandoned orders in an app divided by the number of such abandoned orders.
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.
Average Abandonment Order Value in App = Total Value of Abandoned Orders / Number of Abandoned Orders
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
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.
Key factors include the complexity of navigation, mobile app design, loading speed, customer support responsiveness, abandoned cart recovery efforts, and overall user experience.
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.
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.