Buying and Planning Flashcards
Sales per transaction formula
Net sales / number of transactions
Average order value formula
total revenue / number of orders= $
conversion rate formula
number of sales / number of visits x 100
cart abandonment formula
number of users who don’t complete checkout / number of users who complete purchases x 100
Return Rate Formula
total returns / total sales x 100
bounce rate formula
number of bounces / number of sessions x 100
what is net sales
total revenue from sales expenses
what is gross sales
total sales before deductions
what are four ways to set up KPI’s?
planning, historical data, external benchmarks, internal benchmarks
What is cost of goods sold? (COGS)
how much a product or good costs to make
Sales per employee hour formula?
net sales / employee work hours
sales per square foot of gross space formula
sales / square foot of space
Penetration Percent Formula
part/ Whole x 100
What is sell-through percent?
Units sold/ units owned
why do we need to know sales per transaction
-can help you understand your customers,
-improve your sales strategies,
-optimize your revenue management
why do we need to know average order value
-it helps them understand their customers’ buying habits
- improve their business performance
why do we need to know conversion rate
A business can use conversion rates to optimize their strategies and maximize their return on investment
why do we need to know cart abandonment formula
crucial for e-commerce businesses because it allows them to measure the percentage of customers who start the checkout process but don’t complete a purchase
why do we need to know Return Rate Formula
helps you understand the profitability of an investment, including its cost and risk
help you make better decisions about future investments
why do we need to know bounce rate formula
helps you understand how well your website is performing and how to improve it
why do we need to know Sales per employee hour formula?
it allows businesses to measure how much revenue each employee generates per hour worked, providing insight into their overall staff productivity, helping them identify areas for improvement
why do we need to know sales per square foot of gross space formula
it allows retailers to measure how efficiently they are using their physical store space
why do we need to know Penetration Percent Formula
it allows companies to compare where they are currently, where they have been, where they want to be, and how their competitors are performing.
why do we need to know sell-through percent?
it helps merchants understand how quickly products from certain manufacturers sell
