Tag Archives: frequency

Time elapsed since repeat business with category A customers (top 20% or top 10% customers)

Definition:
The time between two deals with Category A customers, which must be predefined. Normally this should be as low as possible, on the other hand: one large order can be more interesting than a lot of small orders…

Calculation:
Time of last order - time of the order before.

This KPI is measured as: Time (e.g. Years, Minutes)

Interpretation of results: Depends On The Goals

Strategic objective:
Increase profitability

Order frequency

Definition:
Number of orders coming in per period (day/week/year).

Calculation:
Number of orders / period.

This KPI is measured as: Number (amount Of Units, Rating, Etc)

Interpretation of results: Higher Is Better

Strategic objective:
Efficient operations