Sales Pulse: Why the Average Order Value of the total orders including at least 1 of the selected brands is lower than the Average Order Value of orders including each of these brands?
Our current method of calculating Average Order Value is:
So you might be wondering, why is that the Average Order Value of the total orders including at least 1 of the selected brands is lower than the Average Order Value of orders including each of these brands?
In order to better understand this paradox let's take the below example:
Order id | Purchased brand | Order value |
1 | ABC, XYZ | €100 |
2 | ABC | €50 |
3 | ABC | €40 |
4 | XYZ | €20 |
So per brand, we'd have:
Brands | Orders | Average order value |
ABC | 3 | €63.3 |
XYZ | 2 | €60 |
Total | 4 | €52.5 |