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    <title>Business Analytics on ARI Systems</title>
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      <title>E-commerce</title>
      <link>https://aripd.com/blog/ecommerce/</link>
      <pubDate>Sat, 16 Dec 2017 00:00:00 +0000</pubDate>
      <guid>https://aripd.com/blog/ecommerce/</guid>
      <description>&lt;h2 id=&#34;kpi&#34;&gt;KPI &lt;a href=&#34;#kpi&#34; class=&#34;permalink&#34;&gt;&lt;i class=&#34;bi bi-link-45deg&#34;&gt;&lt;/i&gt;&lt;/a&gt;&lt;/h2&gt;&lt;p&gt;KPI’s that can help improve your e-commerce.&lt;/p&gt;&#xA;&lt;h3 id=&#34;return-on-investment&#34;&gt;Return on investment &lt;a href=&#34;#return-on-investment&#34; class=&#34;permalink&#34;&gt;&lt;i class=&#34;bi bi-link-45deg&#34;&gt;&lt;/i&gt;&lt;/a&gt;&lt;/h3&gt;&lt;p&gt;Measure the effectiveness of channels pay comparing revenue to marketing spend.&lt;/p&gt;&#xA;&lt;p&gt;$$\text{ROI} = \frac{\text{Net Profit}}{\text{Total Investments}} \times 100$$&lt;/p&gt;&#xA;&lt;h3 id=&#34;year-over-year-growth&#34;&gt;Year over year growth &lt;a href=&#34;#year-over-year-growth&#34; class=&#34;permalink&#34;&gt;&lt;i class=&#34;bi bi-link-45deg&#34;&gt;&lt;/i&gt;&lt;/a&gt;&lt;/h3&gt;&lt;p&gt;Measure and compare variations for revenue, conversion rates, average order size, customer lifetime value and more.&lt;/p&gt;&#xA;&lt;p&gt;$$\text{YOY} = \frac{\text{Sales this year}-\text{Sales last year}}{\text{Sales last year}}$$&lt;/p&gt;&#xA;&lt;h3 id=&#34;customer-lifetime-value&#34;&gt;Customer lifetime value &lt;a href=&#34;#customer-lifetime-value&#34; class=&#34;permalink&#34;&gt;&lt;i class=&#34;bi bi-link-45deg&#34;&gt;&lt;/i&gt;&lt;/a&gt;&lt;/h3&gt;&lt;p&gt;Understand the average value of a customer by using total profits, number of customers, and average number of years you retain a customer.&lt;/p&gt;</description>
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