This article introduces Average Purchase, a KPI closely tied to Sales.
Average Purchase is the average amount a single customer spends per transaction — calculated as the total of multiple transactions, divided by the number of transactions.
Average Purchase is made up of two KPIs:
Average Item Price — the average price per product sold
Unit Per Transaction — the average number of items purchased per transaction
In other words, Average Purchase is the average of how many products are sold, and at what price, across each transaction.
Formula: Average Purchase = Sales ÷ Transactions
Sales is made up of Transactions and Average Purchase — together, these two indicators determine whether Sales rises or falls. If Average Purchase increases while Transactions stays the same, Sales will also increase. If Average Purchase decreases, Sales may fall even if Transactions increases. Average Purchase has a close relationship with the KPIs that make up Sales.
