Business Metrics Every Data Analyst Must Know ✅

Revenue Metrics
- Revenue: Total income from sales (e.g., monthly revenue ₹25 lakh)
- Gross Revenue vs Net Revenue: Gross (before costs), Net (after discounts and returns)
- Average Order Value: Revenue ÷ number of orders (e.g., ₹1,200 per order)

Growth Metrics
- Growth Rate: (Current − Previous) ÷ Previous (e.g., 15% month-over-month)
- Year-over-Year Growth: Compare same period last year

Customer Metrics
- Customer Count: Total active customers
- New vs Returning Customers: Shows retention strength
- Customer Acquisition Cost: Total marketing spend ÷ new customers
- Customer Lifetime Value: Total revenue from one customer over time

Retention and Churn
- Retention Rate: Customers who stayed ÷ total customers
- Churn Rate: Customers lost ÷ total customers (e.g., 1,000 customers, lost 50, churn rate 5%)

Marketing Metrics
- Conversion Rate: Conversions ÷ visitors
- Click-Through Rate: Clicks ÷ impressions
- Return on Ad Spend: Revenue ÷ ad spend

Product Metrics
- Daily Active Users: Users active per day
- Monthly Active Users: Users active per month
- DAU to MAU Ratio: Engagement strength

Operations Metrics
- Order Fulfillment Time: Time to deliver order
- Defect Rate: Defective units ÷ total units

Mini Task
Pick one business (E-commerce or EdTech). List 5 metrics it should track. Write one question each metric answers.

Let's take E-commerce:
1. Revenue: What's our total sales this month?
2. Customer Acquisition Cost: How much are we spending to acquire each new customer?
3. Retention Rate: How many customers are coming back to shop?
4. Average Order Value: What's the average amount customers are spending per order?
5. Order Fulfillment Time: How quickly are we delivering orders?

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