Saturday, March 12, 2022

What key metrics are tracked as part of monetization?

Lifetime Value (LTV) is the lifetime value of a customer. Shows the profit that the buyer brings for all the time, remaining a client. It is important to consider together with CAC - customer acquisition cost. The ratio shows how much more the store earns from the client compared to how much it spends on attracting him.


Average order value (AOV) - the average cost of one order, "average check". The metric can be influenced by promotional activities, adding upsells and cross-sells.


Average Revenue Per User (ARPU) - average revenue per user. Allows you to understand how much revenue 1 visitor generates.


Average Revenue Per Paying User (ARPPU) is the average revenue per paying user. Allows you to understand the income received from each paying customer who came to the online store.


Paying Share is the average number of customers who made a purchase in relation to the total number of visitors to the online store.


Purchase per user - the average number of purchases made by a user. This metric includes both paying and non-paying users.


Purchases per paying user - the average number of purchases made by a paying user.

What metrics are tested to measure user retention?

CR to Second Order - the proportion of users who, having made their first order during period N, made their second order during either period N or period N + 1.


Churn Rate is the percentage of users who stop using the product within a certain period.


Redemption Rate - the coefficient for using discount coupons.


Net Promoter Score - an index of consumer loyalty or an index of willingness to recommend a product.


Effectiveness of Recommendation Engines - the probability of adding a recommended product to the cart by the user.


Gross Merchandise Volume (GMV) - the total volume of sales through the trading platform for a certain period of time.


Cost of Sales - the costs associated with the sale of goods. ▪Cost of Shipping - the cost of shipping goods.


Cost of Shipping - the cost of shipping goods.


Cost per Order (CPO) - costs per order. Costs for a call center, assembly, delivery, etc. can be taken into account. 

What key metrics are tracked as part of monetization?

Lifetime Value (LTV) is the lifetime value of a customer. Shows the profit that the buyer brings for all the time, remaining a client. It is...