Commerce Metrics Definitions and Relationships
Orders: Represents the number of checkouts, which may include multiple items in a single order.
Sales: The total revenue earned by the retailer or merchant from each order placed.
Commissions: The amount earned by Conde Nast (CN) for each order placed.
Clicks: The number of times a product link is clicked.
Conversion Rate (CVR): Calculated as the ratio of Orders to Clicks (Orders/Clicks).
Cost Per Action (CPA): The ratio of Commissions to Sales (Commissions/Sales).
Interrelation of Metrics
Sales and Orders: These two metrics are closely interlinked. Sales are recorded when a user places an order and the merchant earns revenue.
Sales vs. Commissions: Commissions are the revenue CN earns when users click on third-party products and complete a purchase. If no sale occurs, there are no commissions, with Sales typically being greater than Commissions..
Role of Networks
Networks act as intermediaries between the merchant and Conde Nast. Merchants—third-party companies looking to drive sales by showcasing their products on Conde pages—work with Networks to have their products displayed on these URLs.
Scenarios
No Orders but Clicks: This can occur if users click on a product link but do not proceed to place an order. Currently, Google Analytics (GA) and Snowplow track clicks at the URL level, but Trackonomics does not or its attribution is very low at the URL level.
No Clicks but Orders: This situation might arise due to attribution limitations in Trackonomics. At the URL level, only GA and Snowplow clicks are shown, while Trackonomics clicks are displayed at the overall KPI level and not the URL level. This decision was made to prioritise Trackonomics data at the overall level rather than GA or Snowplow data by the Business. [Clicks will be brought in for 2024 from Snowplow]
Summary
The metrics of Orders, Sales, and Commissions form a narrative where each step logically follows the other, illustrating the flow from user action to revenue generation.
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For further assistance please write to Beacon team at - beacon-help@condenast.com , they are always happy to help 😊