The following is an introduction to the meaning and structure of the term "average number of items purchased," a KPI that is directly related to the increase or decrease in sales.
What is the number of items purchased?
The number of items purchased is the number of items purchased by a single customer in a single transaction.
The total of multiple transactions divided by the number of transactions is the average number of points purchased.
It is synonymous with the average number of items purchased, set rate, and UPT (Unit Per Transaction).
Factors that make up the average number of items purchased
The average number of items purchased is made up of the following two KPIs
(1) Total number of products sold (= number of items sold)
(2) Number of times a customer exchanged money for a product (= number of purchases)
The average number of items purchased is measured in points because it is an indicator of the number of items purchased by a customer in a single transaction.
Indicators Affected by the Average Number of Purchases
The average number of items purchased is a KPI that affects the "average customer spending" in the same way as the average product price.
If the average number of items purchased increases, the average product price per purchase increases. If the average product price per purchase remains the same, the average customer price per purchase increases.
On the other hand, if the average number of items purchased decreases, the average spend per customer may decrease even if the average product price increases.