Work out average transaction value instantly with clear inputs, formula shown and shareable results.
Average transaction value should be calculated net of returns, since a gross figure flatters any category with a high return rate. The gap to target, expressed in currency per transaction, is the number that translates into a specific selling behaviour on the shop floor.
Net ATV
Net ATV = (Total sales - Returns) / Transactions
Return rate
Return rate % = Returns / Total sales x 100
Only if refunds are recorded as separate transactions in your point of sale. Deducting value but not count is the conservative approach.
Bundling, tiered promotions with a spend threshold, and trading customers up within a category rather than adding cheap units.