Correctly understanding the KPIs that make up sales helps you understand the state of your store.
This page walks through how each KPI affects sales, one step at a time.
Sales = Number of Customers Purchasing × Average Spend per Customer
The basic makeup of sales comes down to "how many customers, paying how much."
Number of Customers Purchasing — how many customers bought something — multiplied by Average Spend per Customer — how much was paid per transaction. That's sales.
Comparing these two KPIs against last week or last year shows how close you are to your sales target.
Next, let's look at what makes up each of those two KPIs.
Number of Customers Purchasing = Traffic × Conversion
This is determined by what share of visiting customers actually made a purchase.
It comes from two KPIs working together: Traffic — how many customers visited — and Conversion — what share of them purchased.
Comparing these two KPIs against last week or last year shows why the number of purchasing customers went up or down.
* For more detail, see Increase/decrease patterns in Transactions.
Average Spend per Customer = Average Item Price × Average Number of Items Purchased
This is determined by the price of the items bought and how many were bought.
It reflects two KPIs: Average Item Price — the price of items sold — and Average Number of Items Purchased — how many items were bought.
Comparing these two KPIs against last week or last year shows why average spend per customer went up or down.
* For more detail, see Increase/decrease patterns in Average Purchase.
Sales = (Traffic × Conversion) × (Average Item Price × Average Number of Items Purchased)
Sales are ultimately made up of six KPIs like this. Understanding each one lets you clearly recognize why sales rose or fell, and build an action plan around it.
Flow's platform includes a Radar Chart tool that shows how each KPI affects sales — a great way to check in at a fixed cadence, weekly or monthly. Give it a try.
Identify improvement points from the radar chart
How to use the radar chart to quickly share what's driving your sales.
