Average Revenue per Customer
This KPI measures how much revenue you are generating per customer that purchases your goods or services. Using this metric alongside your Average Customer Headcount can allow you to create more reliable Cash Flow projections and targets to shoot for. When used in isolation, a higher figure should always be aimed for. The more revenue you are generating per customer, the more revenue you are receiving each time a sale occurs. If you have a high volume of Customers but a low Average Revenue per Customer, you may wish to investigate ways in which you can make the purchasing of additional items, services or goods more enticing for your Customer base, through marketing campaigns, better product placement, shelf allocation or another strategy. If this is also accompanied by a low or negative Gross Profit the efficiency of your current pricing should also be examined.
Making the KPI
To calculate your Average Revenue per Customer you will need to know:
- Total applicable revenue (e.g. don’t include interest income!!)
- Number of Customers within period
Your revenue should be sourced from your accountancy package by choice, either automatically by FUTRLI direct link with the package, or manually via CSV. Your Number of Customers should be uploaded via CSV.
Once you have all of your data in FUTRLI you can calculate the KPI by dividing applicable revenue by your Number of Customers:
You can then display your formula on a Card: