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PROFIT PROJECTION

Profit Projection

The Profit Projection is an easy and quick way to check how much Profit you will make in the next six weeks by customer segment. The Profit Projection uses RFM Analysis to rank your customers, and groups them by N-tile. It then looks at what your Response Rates and AOVs have been for the last six weeks, and uses them to project what your Orders and Gross Sales will be for the next six weeks.

The Profit Projection is invaluable in helping you to see where your Profits will come from. Most importantly, the Profit Projection estimates where your Breakeven Point will be so you can then direct your marketing efforts toward the customer segments that will exceed Break Even and away from those that fall below.

Enter your own cost variables

Fulfillment $ per Order Marketing $ per Cust
Returns % of Gross COGS % of Net
Sales/Service % of Gross Overhead % of Gross
N-tile
You can enter your own cost variables to project what your Profit will be for the next six weeks.

PROFIT PROJECTION USING CURRENT RFM ANALYSIS
(DEMO)

Current Analysis as of Today Projected Results for Next Six Weeks
N-tile Customer
Count
Recency Frequency Monetary Tenure LTV Orders Response
Rate
Gross
Sales
  AOV   Profit Profit
/Cust
100 10,211 132 4.36 $2,412 1.23 $495 2,315 22.67% $834,667 $361 $260,474 $25.51
50 10,210 577 1.44 $379 1.77 ($216) 282 2.76% $84,474 $300 ($56,299) ($5.51)
Total 20,421 354 2.90 $1,395 1.50 $140 2,597 12.72% $919,141 $354 $204,175 $10.00
The Profit Projection uses the R·F·M algorithm for ranking customers.

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