Marketing and Sales Metrics

Question 1

Number of customers or orders

Answer 1

an exact or estimated count of the number of people purchasing products from the company or the number of orders the company has received during a specific period of time

Question 2

Average amount received for each order

Answer 2

total amount in dollars received for a particular period divided by number of orders

Question 3

Gross profit margin

Answer 3

total revenue for a certain period of time minus the cost of sales for that particular period/total revenue for that period

Question 4

What is number of customers or orders received measured for?

Answer 4

used to identify problems with current marketing and sales strategies (i.e., drop in number compared to previous periods may indicate problem with marketing strategy)

Question 5

What does amount received per order measure?

Answer 5

used to determine effectiveness of marketing strategies from current customer base; helps identify how much each customer is contributing to organization’s cash flow
i.e., determine if company should expand customer base or encourage more spending from current customer base through marketing initiatives

Question 6

What does gross profit margin measure?

Answer 6

used to determine whether a particular marketing strategy currently in effect is profitable;
compare gross profit margin for current year with previous year to see if new campaign is increasing sales