When you register Analytics , you will need to enter information in the three sections: “Average sales amount”, “Contract Rate” and “Frequency (times)”. By entering the information in these sections appropriately, the analysis in the Sales Calculation Sheet will function correctly.
Also, even after you enter the information, it is possible to reset the value and create a new report each time. This way, we hope that our clients will be able to keep improving the quality of reports.
What are “Average sales amount,” “Contract Rate,” and “Frequency (times)”?
Average sales amount
Enter the estimated sales per customer. For example, when entering information for an E-Commerce website dedicated to T-Shirts, if the average price per shirt is 5,000 yen, then please enter “5000”. Similarly, on a website for a staff agency, if one successful contract result in an estimated 1,500,000-yen sale, then please enter “1500000”.
Enter the probability of a customer inquiry resulting in a successful sale. For example, on an E-Commerce website, since the purchase made on the website is the end of the contract, and it translates to sales with a 100% probability, you should enter “100”. On the other hand, on the website of a Consulting Firm, the probability that the customer actually makes an order or signs a contract out of the entire number of inquiries they receive is 30%. In this case, you should enter “30” for the Sales Conversion Rate.
Enter the average number of repeats by the client. For example, at a Consulting Firm where the Client Satisfaction rate is high, and after the first business, the client usually commissions another 3 jobs, then you should enter “3” here. On the contrary, for businesses such as Home Builders where it is rare for a client to continue making purchases after the initial contract (purchase), then you should enter “1”.
What happens when I do not enter “Average sales amount”, “Contract Rate,” and “Frequency (times)”?
Let’s take a look at the actual screens.
If the user does not enter any information in “Calculate your Profit” when registering for a report:
As in the figure above, all factors after “Contract Rate” become 0, and the lifetime sales prediction cannot be calculated. Furthermore, as it is shown in the report, it is not possible to understand the most recent sales or lifetime sales per access by the user.
On the other hand, if all factors in “Calculate your Profit” are filled out, it is possible to predict not only the lifetime sales prediction but also other detailed indicators such as the number of orders received. These factors would be very beneficial in developing the business.
We hope this clarifies that in order to utilize KOBIT reports to their full potential, you must enter information appropriately under “Calculate your Profit”. If you have yet to enter information, please try today, and create reports of even higher quality.