Value Measurement (Sales Insights)
- Štěpán Vacek
Different metric values are measured in conjunction with the Sales Insights Accelerator. This accelerator uses customer transactional history information (spanning one or more years) and these are the predominant values to measure.
Measures
Measure | Description |
|---|---|
Invoice Price | Reflects the actual price that the end-customer retailer pays to the manufacturer or distributor for a product. |
Margin | Reflects the differences between the price of a good or service and the amount of money required to produce it. |
Quantity | Quantity is the number of items of a specific product that are included on an invoice to a customer. |
Cost | Cost is the total amount a business paid as a cost directly related to the sale of products. It may include products purchased for resale, raw materials, packaging, and direct labor. |
Dimensions
Each of these different values will be measured across one or more dimensions:
Product SKU
Product segmentation hierarchy
Customer ID
Customer segmentation hierarchy
Region
Country
Dates (Year, Quarter and Month)
KPI and Metrics
KPI stands for key performance indicator, a quantifiable measure of performance over time for a specific objective. KPIs provide targets for teams to shoot for, milestones to gauge progress, and insights that help people across the organization make better decisions. While key performance indicators and metrics are related, they are not the same.
KPI
KPIs are the key targets you should be tracking to make the biggest impact on your strategic business outcomes. These KPIs will support your strategy and help your teams focus on what is important. For example, a key performance indicator could be targeted at new consumers by month.
Metrics
Metrics, on the other hand, measure the success of everyday business activities that support your identified KPIs. While they may have an impact on your outcomes, they are not the most critical measurements. Examples could include monthly site visits or number of modules installed.
Sales Insights KPI
The main KPI for Sales Insights is Gross Margin and the measurement of it can be found in the following tools: