What is Average Order Value in Answering Business Questions using SQL

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The question may be silly.

The problem is I come from a retail background (as might some of you reading this) so when I read the words Average Order Value, I just see the average value of an order i.e. the average cost of a basket or how much a customer has spent on average on their order.
That I think has already been handled by the value Average Value of Sales per customer.

Could someone tell me the difference? A simple formula would suffice.

Average Value of Sales per customer =
Total Sales of customers in a country / Number of Customers in the country
similarly (Would appreciate it if you could validate this.)

Average Order Value = ?

I agree, the phrasing is ambiguous. The solution file uses much clearer variable names:
average_order,
customer_lifetime_value

Average order will by the average dollars spent on 1 order whereas customer_lifetime_value will be the average total of orders.

Thank you for the reply @jaydanp

So would you say that
Average_order = Total Sales in a Country / Total orders for that country ?

I just wanted to avoid looking at the solution till I’ve attempted it. Otherwise my train of thought tends to go around what is provided in the solution as opposed to thinking one on my own.

I only had a brief glimpse at the solution file but I would say so, yes. Essentially that would give the same as AVG(invoice.total) GROUP BY Country, which is the route I’ve taken.

Thanks @jaydanp! :slight_smile:
Much appreciated.

I thought it was confusing too. It’s

Average spent per sale/invoice
Average spent per customer