Lifetime Value ( LTV) is a goal that describes the lifetime value of a customer. In other words, this online sales KPI represents how much a customer spends throughout their entire experience with your brand.
To calculate LTV, you need to multiply the average ticket by the average number of purchases per customer, and then multiply by the average customer retention time.
Return on Investment (ROI)
Return on Investment ( ROI ) describes the profit or nepal phone number resource loss from a given marketing and sales action . By tracking ROI, you understand whether or not the investment in an action was beneficial for your business.
How about checking out a video about ROI?
Imagine that you have invested in a paid traffic strategy . To understand the efficiency of the investment, you can adopt ROI as a monitoring indicator. To do this, you can apply the following formula:
ROI = (revenue – cost / cost) x 100
Monthly Recurring Revenue (MRR)
If your business offers a recurring service , such as subscription clubs or the provision of a service, you should adopt MRR as a monitoring metric .
With MRR, you have visibility into your business's monthly revenue from recurring sales. This indicator provides revenue predictability and, therefore, allows for better financial planning.
MRR = number of active customers × amount paid monthly
Online sales KPIs allow business management to make more consistent plans for the short, medium and long term. This means that changes can be implemented from operations to marketing strategies in a much more consistent manner.
Now that you know about online sales KPIs, read this post to learn how to monitor KPIs for marketing strategy .