Understanding The Key Metrics In SegMetrics

Metrics Definitions

AOV - Average Order Value: The Average Order Value is calculated by dividing the Revenue by the number of Sales during the time period.

New Leads -- The number of new Contacts added to your CRM account

New Buyers -- The number of New Leads who have made a purchase. In other words, of the people added to my CRM account during a given timeframe, the number of those people who have purchased something

Conversion Rate (or Conv. Rate or Conv.%) -- The percentage of New Leads who have converted to Buyers (i.e., New Buyers / New Leads)

New Lead Value (or Lead Value) -- The average amount of revenue generated by a New Lead.

Note that this calculation includes all revenue ever generated by the New Leads in a given timeframe. So if you’re looking at a report for January 2015, the Lead Value for the New Leads in that report will include all revenue generated by those Leads up until present day.

This is really helpful for understanding how leads monetize. If you look at the Lead Value for New Leads that joined your list a year ago, they may now be worth $$60 each while New Leads that joined your list yesterday may be worth $0. That $60 Lead Value could be indicative of how much yesterday’s New Leads will be worth in a year’s time.

New Lead Revenue -- The amount of revenue generated -- all-time -- by the New Leads in any given report.

For example, in this report we’re analyzing 3,097 New Leads who signed up in October 2014. From the day they signed up until present day, those New Leads have generated $13,495.

To be clear, this is NOT the amount of revenue they have generated during October 2014. It is the all-time revenue for New Leads.

New Buyer Value -- The average revenue generated by a New Buyer during a given timeframe. The calculation for this metric is Lead Revenue / New Buyers.

Sales -- The number of Products sold during a given timeframe. Note that if an invoice or order contains multiple items, each one will be calculated as a separate sale.

Tax, Shipping, etc are not included as Sales, even though they are noted as separate invoice items.

Revenue -- The amount of Revenue generated during a given timeframe.

The Difference Between New Lead Metrics vs Purchase Metrics (i.e., Blue Columns vs. Green Columns)

You may have noticed that the metrics in the Table Reports are divided into two sets of columns -- blue and green.

The blue columns are “New Lead Metrics”. The New Lead Metrics reflect the activity of New Leads generated during a given timeframe.

The New Lead Metrics are key for analyzing the number, conversion and value of New Leads. You may use these to track how many New Leads you have acquired from a given Referrer, or how much Revenue has been generated to date by people who first joined your list in February 2015.

The green columns are Purchase Metrics. These metrics don’t depend on whether someone is a New Lead or not. They are a reflection of how many total sales were processed by your payment processor.

Contacts Report

Leads:

The number of contacts that fit the search conditions. If you are filtering by contacts created in this date range, this is the number of new contacts that have been added to your account during the report date range. Note: Lead count is not affected by filtering purchases.

Customers:

Customers are any contacts that fit the report filters who have also purchased a product that fits the report filters.

Conversion Rate:

Your Conversion Rate is a measure of how effective you are at turning your Leads into Customers. The higher this number, the more effective your marketing funnels are.

CALCULATION: Number of Customers / Number of Leads

Revenue:

Revenue is the amount of money that you will make if all invoices are paid in full, otherwise known as sales. Collected Revenue can be found under the "Collections" report.

Lead Value:

Your Lead Value measures how valuable your new Leads are. Measuring the Lead Value for different Lead Sources, Campaigns or Touchpoints is an important way to determine how much you can spend to acquire a new lead, and how effective your marketing funnels are.

CALCULATION: Revenue / Number of Contacts

Revenue Report

Customers:

Customers are any contacts that fit the report filters who have also purchased a product that fits the report filters.

Revenue:

Revenue is the amount of money that you will make if all invoices are paid in full, otherwise known as sales. Collected Revenue can be found under the "Collections" report.

Orders:

Number of distinct Invoices that were created during this timeframe. A single order may contain multiple Invoice Items.

Average Order Value (AOV):

Your AOV shows how much customers are normally spending with you when they make a purchase. Increasing your AOV is a great way to increase revenue without having to improve lead generation or conversion rate. One-Click Upsells and Upgrades are a great way to increase your AOV.

CALCULATION: Revenue / Number of Invoices

Customer Value:

Customer value is a calculation of the revenue that customers in this report have generated, from purchases in this report. Understanding your Customer Value helps you know how much you can expect to generate from every new customer you bring in.

CALCULATION: Revenue / Number of Customers

Affiliates Report

Affiliate Leads:

Affiliate Orders:

Number of distinct Invoices that were created during this timeframe. A single order may contain multiple Invoice Items.

Affiliate Revenue:

Revenue is the amount of money that you will make if all invoices are paid in full, otherwise known as sales. Collected Revenue can be found under the "Collections" report.

Commissions Owed: The amount of commission that has not yet been paid.

Percentage of Sales: The percentage of your sales that is earned via affiliate sales.

Ad Reporting

Leads:

Customers:

Customers are any contacts that fit the report filters who have also purchased a product that fits the report filters.

Revenue:

Revenue is the amount of money that you will make if all invoices are paid in full, otherwise known as sales. Collected Revenue can be found under the "Collections" report.

Ad Spend:

The amount of ad spend across all of your ads. This data is imported straight from your ad platform and includes ads that may or may not be currently set up to be tracked in SegMetrics.

Ad CPA:

The amount spent on ads to acquire the leads in the cohort. If you are looking at the acquisition cost for new leads, make sure that you select "In Date Range" in the filters.

CALCULATION: Ad Spend ÷ Number of Leads

Return on Ad Spend (RoAS):

Return on Ad Spend calculates how much revenue you are generating for each dollar you spend on ads. If you filter your report to only include leads who came in from an ad, this will give you an accurate assessment of how much return you are getting on each of your ads. 100% means that you have made back all the money you spent on ads.

CALCULATION: Revenue ÷ Ad Spend

Monetization Report

Leads:

Revenue:

Revenue is the amount of money that you will make if all invoices are paid in full, otherwise known as sales. Collected Revenue can be found under the "Collections" report.

Days Until Purchase:

Days until Purchase is the calculation of how long, on average, it takes leads to turn into customers. Understanding your Days Until Purchase helps you know how much nurturing it takes to convert your leads into customers.

CALCULATION: First Purchase Date - Lead Creation Date

Customer Age:

Customer Age calculates how old the leads on your list are. This is helpful in understanding when the majority of your leads joined your list from within a specific cohort.

CALCULATION: Today - Lead Creation Date

Customer Value:

CALCULATION: Revenue ÷ Number of Customers

Lead Value:

CALCULATION: Revenue / Number of Contacts

Subscriptions Report

Monthly Recurring Revenue (MRR):

Your MRR is one of the most important metrics for any company that offers subscriptions. MRR is the amount of revenue that your subscriptions generate on a recurring basis, normalized over a 30-day timespan.

CALCULATION: Subscription Amount ÷ Subscription Frequency (normalized to 30 days) IF Status is Active

Active Subscriptions:

The total number of active subscriptions that you currently have.

CALCULATION: Number of Subscriptions IF Status is Active

New Subscriptions:

The total number of active subscriptions that you've added during this timeframe.

CALCULATION: Number of Subscriptions IF Status is Active AND StartDate >= Beginning of Report

Cancellations:

The number of subscriptions that have expired during this timeframe. A subscription is active until the end of when it has been paid through, even if the subscription is cancelled earlier. For example, if a monthly subscription is canceled halfway through the month, it is still considered valid until the subscription reaches its end date.

CALCULATION: Number of Subscriptions IF Status is Inactive AND PaidThruDate BETWEEN Beginning of Report & End of Report

Churn:

User Churn is the percentage of subscriptions that have been canceled during this timeframe relative to the number of active subscriptions you had at the beginning of the report. New subscriptions created during the timeframe are not calculated in User Churn.

CALCULATION: (Canceled Subscription ÷ Active Subscriptions BEFORE Beginning of Report that are still active) x 100

Revenue Churn:

Revenue Churn is the percentage of MRR that has been lost during this timeframe relative to your MRR at the beginning of the report. New subscriptions created during the timeframe are not calculated in Revenue Churn.

CALCULATION: (MRR Lost from Cancelations BEFORE the Beginning of Report ÷ MRR at Beginning of Report) x 100

Collections Report

Revenue:

Revenue is the amount of money that you will make if all invoices are paid in full, otherwise known as sales. Collected Revenue can be found under the "Collections" report.

Collected:

Collected revenue tracks the amount paid towards all existing invoices. This is "money in the bank," and reconciles with the amount of money that your customers have currently paid.

CALCULATION: Invoices' TotalPaid

Refunds:

Refunds are the Total Value of all invoices that are marked as "Refunded"

CALCULATION: Invoice Items' Amount IF Item is marked as Refunded

Outstanding:

Delinquent Revenue shows how much outstanding revenue is still owed on your existing Invoices. Delinquent revenue can be caused by card failures, non-payments or outstanding balances on Invoices that have payment plans.

CALCULATION: Invoices' Amount - Invoices' TotalPaid

Deal Pipeline:

Deals Open:

The total number of deals that are open. These are deals that have not yet been won within the specified time frame.

Deals Won:

The total number of deals that have been won within the specified time frame.

Deals Lost:

The total number of deals that have been lost within the specified time frame.

Amount Open:

The amount of revenue that is still open and has not yet been collected from won deals.

Amount Won:

The total amount of revenue that has been collected from won deals.