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The KPI Playbook: How To Measure What Matters In E-Commerce Operations
Manage episode 446449163 series 3031165
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🌟 KPIs: Key Performance Indicators That Drive Growth 🚀
As entrepreneurs, we know that what gets measured, gets improved.
📈 It’s crucial to understand your KPIs in e-commerce! Let’s break down 4 essential ones for operations.
1️⃣ COGS (Cost of Goods Sold) as a % of revenue 📊
2️⃣ OPEX (Operating Expenses) as a % of revenue 💰
3️⃣ Cash Conversion Cycle ⏳ (How quickly cash flows back into your business)
4️⃣ Profit Margins 💵 (A healthy profit margin is a must!)
🔥BONUS: The Holy Grail: CPR (Customer Profit Ratio). This combines:
- Profit Margin ✅
- Customer Lifetime Value ⏳
- Customer Acquisition Cost 💸
💡 Pro Tip: Focus on cash flow and cost control, and always aim to increase your profit margins!
Curious about the marketing KPIs? Stay tuned for my next post! 😉
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