Performance Ratios Report
Understanding the performance of your products is essential for optimizing your website’s effectiveness and maximizing revenue. The „Performance Ratios” report provides a comprehensive view of how your products are interacting with customers and contributing to revenue generation, structured into six distinct classes.
The Six Product Performance Classes
1. Hidden Products
- Description: These are the products that have not received any views from visitors or recurring customers, essentially remaining undiscovered on your website.
- Action: Identifying these products is crucial for bringing them to the forefront and increasing their visibility to potential customers.
2. Listed, not clicked
- Description: Products in this category have been displayed on your website, either through a collection or search result, but have not been clicked on by any users to view their detail page.
- Action: Analyzing why these products are not attracting attention can help you optimize their placement or improve their presentation to encourage clicks.
3. Viewed, not purchased
- Description: This category includes products that have been viewed by customers and even added to the cart but have not been purchased.
- Action: Understanding why these products are not converting into sales can help you refine your offerings or adjust your marketing strategies accordingly.
4. C Products (Bottom 10% Revenue)
- Description: This category consists of products that contribute the least to your revenue, making up the bottom 10 percent in terms of revenue contribution.
- Action: Analyzing these products can help you determine whether they are worth keeping in your inventory or if adjustments need to be made to improve their performance.
5. B Products (70% – 90% Cumulative Revenue)
- Description: These are the high-performing products that contribute significantly to your revenue, representing the 70 to 90 percent range of cumulative revenue.
- Action: Identifying and understanding the factors that make these products successful can help you replicate their success with other items in your inventory.
6. A Products (Top 70% Cumulative Revenue)
- Description: These are the top-performing products that collectively generate an impressive 70 percent of the cumulative revenue.
- Action: Understanding what makes these products stand out can help you focus your resources and efforts on promoting them further to drive even greater revenue.
Revenue Tracking and Progression
The report also provides a breakdown of individual product revenue alongside the percentage contribution to the total sales. This allows you to track how each product is performing over time and identify trends in customer preferences and purchasing behavior.
As products gain more traction and contribute more to the overall revenue, they can ascend through the classes, moving from lower tiers to higher ones. This progression reflects the growing impact of these products on your revenue stream and highlights their increasing importance to your business success.
Conclusion
The „Performance Ratios” report is a valuable tool for evaluating your product performance, understanding customer behavior, and maximizing revenue generation. By leveraging the insights provided by this report, you can identify opportunities for improvement, optimize your product offerings, and drive sustainable growth for your business.