-
Customer Performance Overview
Once a business begins investing more in sales and marketing, management should ensure CAC does not rise to an unacceptable level. They should also pay close attention to customer attrition to make sure that new batches of customers are a good fit for the product/service and do not have a higher attrition rate than existing customers. If CAC, CLV, or customer attrition gets out of line, it’s time to stop and reassess the marketing channels and strategy. This report identifies opportunities to achieve the below goals:
- Track cash flow
- Track total accounts, new accounts
- Track marketing effort
This report tracks the KPIs related to sales perspective of business including:
- Acquisition Spend: total cost related to acquiring a new customer
- New Customers: total customers who made the first order in the year
- CAC (Customer Acquisition Cost): Acquisition Spend per Customer
- Gross Revenue: total revenue generated by a business without deducting any expenses and losses
- LTV (Customer Lifetime Value): total revenue generated with deducting other expenses and losses
| Goals | Questions to ask | Dashboard views |
| Track cash flow | What are business revenues and expenses? | Gross Revenue, Discounts, Net Sales, COGS, Gross Margin,… |
| Track total accounts, new accounts | How have the number of new accounts, total accounts varied over time (compare TY vs LY)? | Total Accounts, New Customers |
| Track marketing effort | What is the cost of attracting new customers in comparison their contribution to business? | Acquisition Spend, CAC, LTV, Customer Contribution |
Customer Performance Overview Report
The quick indicator view boxes at the top of the report make it easy for businesses to track the numbers they need. It can even be compared with the previous year to see if the situation is better or worse.
The waterfall chart shows a running total as values are added or subtracted. It’s useful for understanding how an initial value is affected by a series of positive and negative values. The columns are color coded so you can quickly tell positive from negative numbers. In this report, after deducting other expenses and losses from Gross Revenue, we obtain Customer Lifetime Value. Looking at revenue and expenses like this allows businesses to realize where they are doing well, whether they are over budgeted or not so they can adjust to fit their budget.
Finally, the ‘CAC Trend’ chart lets us compare the overall number of new accounts with the expense of acquiring new customers. Previously, it spent $40 CAC but received relatively few new accounts; but, recently, with the same $40, it received ten times as many new customers as in the last period. Businesses must reflect on why this is the case. Is it as a result of the occasionally carried out sales and promotional activities. The budget should then be divided correctly for each subsequent period.
Conclusion
This report allows you to track how your ecommerce business is performing and demonstrate the value of your online marketing efforts for the business.
