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How are my metrics calculated?
How are my metrics calculated?

All the definitions & calculations you need to understand your e-commerce data within Polar.

Abby Garland avatar
Written by Abby Garland
Updated over a week ago

Within most metrics in your Key Indicators tab (and throughout Polar), you can view the formula for how we calculate the metric by hovering over the small "i" icon within the widget. We've also included each of our metrics & how they're calculated below for you to reference.

Formulas:

Blended Metrics:

  • ACOS: Total Marketing Spend ÷ Total Sales

  • Blended CAC: Total Marketing Spend ÷ # New Customer Orders

  • Blended Conversion Rate: Total Orders ÷ # GA Sessions

  • Blended ROAS (MER): Total Sales ÷ Total Marketing Spend

  • New Customer ROAS: Total Sales from New (First-time) Customers ÷ Total Marketing Spend

  • Paid CPA: Total Marketing Spend ÷ Total Conversions from Pixels

  • Paid ROAS: Total Conversions from Pixels ÷ Total Marketing Spend

  • POAS (Profit on Ad Spend): Gross Profit (Gross Sales - Discounts - Returns) ÷ Total Marketing Spend

  • Total Conversion Value from pixels: Total Conversion Value from pixels across all data sources

  • Total Conversions from pixels: Total Conversions from pixels across all data sources

  • Total Marketing Spend: Ad spend across all connected data sources

Shopify Computed Metrics:

  • Average Order Value: Total sales without subtracting the value of returns ÷ Total Orders

  • Gross Margin: Gross Profit (Net Sales - Cost of Products) ÷ Net Sales (Gross Sales - Discounts - Returns)

  • Gross Margin (net of expenses): Gross Profit (Net Sales - Cost of Products - Expenses) ÷ Net Sales (Gross Sales - Discounts - Returns)

  • Gross Profit: Net Sales (Gross Sales - Discounts - Returns) - Cost of Products

  • Gross Profit (net of expenses): Net Sales (Gross Sales - Discounts - Returns) - Cost of Products - Expenses

  • LTV: (Gross Sales - Discounts - Returns + Shipping + Tax generated in set date range) ÷ Total Customers (This article goes into more detail on how LTV is calculated in Polar).

  • Net Sales: Gross Sales - Discounts - Returns

  • New Average Order Value: Total sales from New Customers without subtracting the value of returns ÷ Total Orders

  • New Customer %: # New Customer Orders ÷ Total Customers

  • New Sales: Total Sales from New (First-time) Customers

  • New Sales %: Total Sales from New Customers ÷ Total Sales

  • Purchase Frequency:

  • Repeat Average Order Value: Total Sales from Repeat Customers without subtracting the value of returns ÷ Total Orders

  • Repeat Customer %: # Repeat Customers ÷ Total Customers

  • Repeat Sales: Total Sales from Repeat (Returning) Customers

  • Repeat Sales %: Total Sales from Repeat (Returning) Customers ÷ Total Customers

  • Total Sales: Gross Sales - Discounts - Returns + Shipping + Tax. (This article includes more detail on how Total Sales is calculated in Shopify & Polar).

  • X Day Gross Profit: Net Sales from the past X days (Gross Sales - Discounts - Returns) - Cost of Products

  • X Day LTV: (Gross Sales - Discounts - Returns + Shipping + Tax generated in X date range) ÷ Total Customers (This article goes into more detail on how LTV is calculated in Polar).

  • X Day Net Sales: Gross Sales from the past X days - Discounts - Returns

  • X Day Total Sales: Gross Sales from the past X days - Discounts - Returns + Shipping + Tax. (This article includes more detail on how Total Sales is calculated in Shopify & Polar).

Shopify Raw Metrics:

Each of these metrics are pulled directly from Shopify. You can hover over the "i" icon to read more about what's included in each raw metric.

Definitions:

  • GA Sessions: number of sessions on your online store

  • GA Conversion Rate: the number of buyers divided by the number of sessions over a defined period

  • Average Order Value: total revenues divided by the number of purchases over a period

  • Repeat Customers %: share of buyers who are already customers

  • Repeat Revenues %: share of the revenue from repeated buyers

  • LTV (Lifetime Value): represents the amount of money a customer will spend buying your products over a specific period of time

  • Cohorts: represents a group of buyers according to specific behavior

  • LTV by Product: This represents the total LTV of the customer depending on the first product purchased

  • SKU (Stock Keeping Unit): represents the reference point of a product - each product has its own SKU.

  • Flow: sequence of emails triggered automatically depending on specific behaviors

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