Five Retail Acronyms You Need to Know

Whether you’re already an established retail business or you’re just starting out, we want you to know these five very important retail acronyms to stay on track and take your business to the next level. 

ROI

Return on investment in your business. What is the ROI of your time working on a project, on an investment, etc? It must have a greater output than input.

KPI

A key performance indicator will help you understand what are your most important metrics to drive your business forward and how will you measure them? Each team in your company has its own KPIs. 

AOV

Average order value. Understand the amount of revenue you sold in a particular period of time divided by the number of orders or transactions you had in the same period of time. The more traffic you're able to drive and the higher conversion rate you're able to drive, the higher the average order value. 

UPT

Units per transaction. This is the total items you sold in a period of time divided by the number of transactions you had in the same period of time. Are people buying more than one item? The higher the UPT the less work to do to drive traffic to get to that end financial goal.

ROAS

Return on ads spend. The revenue associated with the ad you're running divided by the cost of the campaign. Make sure the attribution to each ad is correct.

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