Basket Size (Average Transaction Value)
Average value of each customer transaction at point of sale
What is Basket Size (Average Transaction Value)?
Basket size, or average transaction value, is the average amount customers spend per purchase. It shows how much each shopping visit is worth.
Raising it is one of the most direct ways to increase revenue without needing more customers.
How this KPI is measured
- Function
- Sales
- Sub-function
- Transaction Analysis
- Industry
- Retail
- Type
- Lagging
- Impact
- Revenue
- Unit
- $
- Measurement frequency
- Daily / Weekly
- Formula
- Total revenue / Number of transactions
How to calculate it
Divide total revenue by the number of transactions.
For example, if a store took 500,000 from 10,000 transactions, the average basket is 50.
Split by store, channel and customer type, and read with units per transaction to see whether change comes from more items or higher prices.
Where it is used
Increasing sales
Grow revenue per visit.
Testing offers
See effects of bundles and thresholds.
Comparing stores
Find best practice.
How to improve it
Tips and common mistakes
- Do not push customers to buy what they do not want.
- Read with transaction count.
- Watch margin on bundles.
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