Metric Definitions
One page per metric: what it means, how to calculate it, a worked example, and the mistakes that make the number wrong.
For DTC Brands
- Contribution MarginContribution margin is net revenue minus the costs that rise with each order: product cost, fulfillment, and payment and marketplace fees, before any marketing spend.Read more
- Customer Lifetime Value (Contribution LTV)Contribution margin LTV is the cumulative contribution a group of new customers generates, divided by the number of customers first acquired, measured at a stated age such as 12 months after the first order.Read more
- Customer Acquisition Cost (CAC)Customer acquisition cost (CAC) is acquisition spend divided by the new customers it is counted against, and blended, attributed, and incremental CAC each count those customers differently.Read more
- Repeat Purchase RateRepeat purchase rate is the share of first-time buyers who place another order within 90 days of their first order, counting only customers who have had the full 90 days.Read more
- Net RevenueNet revenue is net sales (gross sales minus discounts and returns) plus shipping charged to customers, minus shipping refunded, before tax, under a rule that finance owns.Read more
For Infusion Centers
- Chair UtilizationChair utilization is the share of an infusion center's available chair-hours that patients actually used for completed infusions.Read more
- No-Show RateAn infusion center's no-show rate is the share of appointments scheduled for a day where the patient did not arrive and did not cancel.Read more
- Referral to First Treatment TimeReferral to first treatment time is the number of days from the date an infusion order is received to the date of the patient's first completed infusion, reported as a median and a 90th percentile.Read more
- Claim Denial RateAn infusion claim denial rate is the share of claims, claim lines, or dollars that payers deny the first time they process them, after leaving out normal adjustments that are not denials.Read more
- Referral Conversion RateReferral conversion rate is the share of infusion referrals received in a given month that reach a first completed infusion within a fixed follow-up window.Read more
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