Business View Delivers Complete Business Scenario
The Business View is the graphical representation through two 1D graphs, where one graph presents the trends while another denotes the change in trend. The trends it shows are for six individual KPIs for customer segments and product clusters (however, these 6 default KPIs can be changed to get a desired business view based on other KPIs). The business view can be utilized for any segment or cluster with the open choice to get the insights for the Last 12 Month Behavior, Till Date Behavior, Monthly Behavior, etc.
The six KPIs which are used to derive the business score, as well as the average of the each KPIs for a particular segment or cluster, include:
- Average Latency
- Average Order Value (AOV)/ Average Price Sold (APS)
- Order Count
- Overall Discount %
- Recency in days
- Total Purchase Amount
Each KPI shows the average value for the segment or cluster which is meant to be analyzed. The average value of each KPI is utilized by analyzing the time-based variations in the related trends. For example, we choose the ‘Active Customers’ segment for analysis (Active products for cluster analysis), and want to look for the ‘Last 12 month Trend’. In such a case, the Business View KPI entities will each show the average latency, order count, etc for the Last 12-month trend. The good thing is that the last 12-month trend not necessarily means only the last 12 month, but the last 12-month behavior from any month in general.
Let’s get further with the example of ‘Active Customers/Products’ for the Last 12-month trend. For such segment/cluster, Enalito figures out the average value of Latency, AOV/APS, Order count and the rest of the total six KPIs. The average for each of these KPIs is figured as the difference between the value of ‘Current position’ and the ‘Previous Position’ of the related KPI. In the Last 12-month trend, the previous position is the position of 12 months before the current position of the KPI. Likewise, the average is figured for each of the 6 KPIs. The month-wise trend is shown in the right 1D graph on the dashboard of Enalito tool with monthly values denoted at each point as per the rise or decline of the related KPI.
The 1D graph on the left of the business view indicates the ‘change in trend’. The ‘change in trend’ graph shows the difference between the current position and the previous position of the selected KPI. It means that the right graph shows the average KPI values for each month, whereas the left graph denotes the 12-month difference of the KPI’s value for each month in regard to the previous value of the same KPI last year.
It must be noted down that Average Latency and Recency in days are good for the business when their value is less, while the rest of the KPIs are good for the business at a higher value. This is why each KPIs tab shows a ‘-ve’ or ‘+ve’ sign, which denotes whether the business performed negatively or positively for the related KPI. However, in the change in trend graph, the rise in trend is better for the business and the downtrend shows the decline.
All of the KPIs are sufficient on their own to give useful insights into the business. These six KPIs apply similarly to customer segments and product clusters as well. Only the Average Order Value (AOV) for customer segments is Average Price Sold (APS) for product clusters.
Additionally, Enalito doesn’t just provide individual KPI average for segments and clusters for any given period. It also provides the ‘% Change’ and ‘Business Score’ for the analyzed segment and cluster. The ‘% Change’ is derived from the current and previous positions of the KPI values for any given time. In addition to the difference between the previous and current position of the KPI, the result is divided by the KPI value of the previous position. From that figure, % Change is obtained and served to retailers to inform how much and in which direction the business is transforming.
The ‘Business Score’ is the single-figure score derived from combining the results of all the six KPIs. It is the score that provides the final answer whether all the KPIs are suggesting overall business growth or decline on an average. The business score is obtained by multiplying each KPIs ‘% Change’ with its related ‘Weightage’ and then taking out the combined average of all of these scores. Weightage is the name given to the share of each KPI in figuring out the combined business view. For example, the consideration of 6 KPIs for evaluating business score makes each KPI weigh for 16.67% (i.e 100/6= 16.67 weightage of each KPI). The business score is either negative or positive which shows whether the business has grown from the previous position or not.
This is how Enalito considers different KPIs to give individual insights for each KPI, a combined business score, % Change and the count of Positive, Negative and Neutral customers/products for the business. Like the example of the Last 12-month trend, all of these insights can be obtained for each customer segment and cluster, for any segment type the retailer wants.