What is Average Transaction Value (ATV) in Retail? Explained

Average Transaction Value (ATV) is a crucial metric in the retail landscape, representing the average monetary value of transactions conducted by customers. Calculated by dividing the total revenue by the number of transactions within a specific period, ATV provides insights into consumer spending patterns. Monitoring ATV helps retailers make informed decisions about pricing strategies, product bundling, and overall sales performance. A rising ATV indicates increased customer spending, while a decline may prompt retailers to adjust marketing or promotional tactics to enhance transaction value and overall profitability.