IRP Definitions & Calculations
All figures shown include VAT (Tax). Growth figures, if positive, are coloured green;
if negative they are coloured red. For consistency, this convention applies also
to Cost Per Acquisition figures. Growth figures are calculated using the formula:
(Difference between Most Recent Month & Earlier Month / Earlier Month) * 100.
The formulae are applied to the underlying data and then rounded off; thus re-applying
the formulae to the rounded off figures may produce very slightly different figures.
Sales Growth This is the percentage difference
(positive or negative) between the Total Revenue (£) for the selected months. Monthly
monetary values are not shown. Cost Per Acquisition
This indicates how much it costs in terms of marketing spend to acquire a customer,
expressed as a percentage. For each month, the CPA% is calculated using the formula:
Total Marketing Cost / Total Revenue (£) * 100. Conversion
Rate This is defined as the percentage of visitors who become customers
or, more precisely, the percentage of sessions that result in a sale. For each month,
the Conversion Rate is calculated using the formula: Total Transactions / Total
Sessions * 100. Note that sessions are used in this calculation and not visitors.
Average Order Value This is defined as the average
monetary value of all orders in a single month. For each month, the AOV is calculated
using the formula: Total Revenue (£) / Number of Orders.
Average Sale Price of Item This is defined as the average price that
products are sold for within a particular market or across all markets. For each
month, the Average Sale Price is calculated using the formula: Total Revenue (£)
/ Number of Units Sold. Traffic Channels The
pie chart shows the percentage contribution made by individual traffic channels
to overall sales. The figures are calculated using the formula: Revenue from Traffic
Channel (£) / Total Revenue (£) * 100.