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Glossary

Average Order Value

Also known as: AOV

Average order value (AOV) is the mean value of a single order — total revenue divided by number of orders — and in a subscription business it is measured per recurring charge, which makes it one of the three inputs to lifetime value alongside frequency and retention.

Subscription AOV behaves differently from one-off retail AOV, because the same customer generates an order every cycle without being re-sold. That makes small, permanent increases unusually valuable: adding one item to a box lifts every future charge for as long as the subscriber stays, rather than one basket.

The formats that raise it are mostly structural rather than promotional — build-your-own boxes where the customer chooses more items than a fixed pack would contain, bundles that ship as one line, and add-ons a subscriber can attach to their next delivery. Prepaid terms raise the value of the initial charge instead, trading a higher upfront order for a committed run of deliveries.

Curobi supports build-your-own boxes with per-item limits, curated boxes, bundles, and prepaid terms, so the format itself can carry the increase rather than a discount campaign.

Related terms

  • Customer Lifetime Value — Customer lifetime value (LTV) is the total revenue — or, more usefully, gross profit — a business expects from a single customer across the whole of their relationship, which for a subscription is driven by order value, order frequency, and how long the subscriber stays.
  • Product Bundle — A product bundle is a fixed set of products sold together as a single unit — often at a discount versus buying each separately — which can be offered as a one-time purchase or on a recurring subscription.
  • Build-Your-Own Box — A build-your-own box (BYOB) is a subscription in which the customer assembles their own recurring box from a set of eligible products each cycle — for example choosing which coffee bags go in this month's shipment — usually within a per-item limit and before a billing cutoff.
  • Prepaid Subscription — A prepaid subscription is a recurring plan where the customer pays upfront for a fixed number of deliveries — such as a 3-month or 6-month term billed in one charge — instead of being billed each cycle as products ship.

← All subscription commerce terms