Average Annual Value

In the Herdify portal, you can view your brand's average annual value (AAV) for orders placed inside Herdify areas, as well as for orders placed outside of Herdify areas.

The portal also shows the percentage difference between these two values, helping you compare your customers' value in and outside of Herdify areas.

Average Annual Value Calculation

\[\text{Average Annual Value} = \text{Number of Orders} \times \text{Number of Unique Customers}\]

Average annual value gives an estimate of the average yearly revenue generated by each customer. It takes into account both Average order value and Purchase frequency.

You can increase average annual value by increasing the number of orders your customers make throughout the year, or by increasing the amount customers spend per order. The highest value customers will make lots of high value orders over the course of a year.