A product line refers to a set of products that have similar uses and are generally marketed as a cluster. The Product-Line Profitability metric calculates the total amount of profit gained from all products within a product line, minus the expenses used to produce and sell them. FormulaProduct line revenue – Product line expenses
When talking about the Average Purchase Value, it is referred to the average sales value of each processed sales transaction. Basically, it shows you what’s the average amount that is currently spent on one of your products or services, in an individual transaction. Depending on, for example, the length of the average contract or your…
The Funnel Conversion Rate metric helps your team understand and monitor how effective their efforts are in prompting leads to complete goals and move through to the end of funnel. Monitoring the funnel conversion rate gives your team valuable insight into the efficiency of their marketing efforts and into the volume trends of their funnel. Formula(Number of…
Lead conversion rate measures the percentage of your leads that end up converting to opportunities. To calculate lead conversion rate, you take the number of leads converted to opportunities in a period, and divide that by the number of leads created in that period. For example, if you had 100 leads that were created in March,…
The End Action Rate KPI measures how effective marketing campaigns are by monitoring the last action taken by your audience. This KPI may also incorporate non-sales related objectives such as contact requests or bounce rates. The End Action Rate KPI is intended to provide your team with actionable information about your campaign performance. For example, if you…
Customer Acquisition Cost (CAC) is calculated by dividing all the Sales and Marketing costs involved to acquire a new customer within a certain timeframe. To get your customer acquisition cost (CAC), divide all sales and marketing costs by the number of customers acquired over a given time period. CAC is an important metric for growing companies…
Cost variance (CV), also known as budget variance, is the difference between the actual cost and the budgeted cost, or what you expected to spend versus what you actually spent. This formula helps project managers figure out if they are over or under budget. A positive CV shows that the project is under budget, and…
Schedule variance (SV) is calculated as the difference between earned value (EV) and planned value (PV). How much value have we earned in the project based on our budget at completion (BAC) and what percentage of work has been completed and how much did we plan to have spent by this point in the project?…
Utilization rates show how much of your team’s time is being spent on billable tasks, as well as how productive each team member is. Ultimately, these figures enable team leaders to measure billing efficiency and determine if you are pricing your projects correctly to cover your costs and make a profit. That sweet spot, according…
The schedule performance index (SPI) is a measure of how close the project is to being completed compared to the schedule. As a ratio it is calculated by dividing the budgeted cost of work performed, or earned value(EV), by the planned value(PV). FormulaSPI = EV / PV For example:A project has a budgeted cost of…