Understanding Different Types of Goals

When it comes to creating and visualizing goals in RetentionX, you may have noticed that it is not the same for all KPIs. That's because we distinguish between two different types of objectives: Goals that measure progress and goals that measure deviation:

• Progress goals are designed for metrics that accumulate over time, such as revenue or orders. These goals build incrementally to reach a final target number by the end of the period.
• Deviation goals are for metrics such as AOV or LTV where you want to maintain or reach a certain level. These goals focus on maintaining a certain average, which can fluctuate with each new data point.

Let's dive deeper into what this means for your goal setting.

Progress Goals

Progress goals track metrics that accumulate incrementally over time, building up towards a specific target. For example, reaching a target for total revenue or number of orders by the end of the year.

Example
If your goal is to reach $3,000,000 in revenue this year, each month's revenue is added to the total accumulated to date.

• January: $100,000 in revenue
• February: $100,000 in revenue (cumulative total: $200,000)
• March: $180,000 in revenue (cumulative total: $380,000)

Each month's revenue contributes incrementally to the annual goal.

Here's an overview of all available progress goals:

• Revenue
  • Net Revenue
  • Gross Revenue
• Customers
• New Customers
• Orders
• Items Sold
• Contribution Margin 1

Deviation Goals

Deviation goals focus on maintaining or achieving a specific average for metrics that can fluctuate over time. For instance, you might aim to sustain a target AOV or LTV by end of the year.

Example
If your goal is to maintain an AOV of $50 throughout the year, each new order will affect the average - either positively or negatively:

• January: Order values are $45 and $55 (AOV: $50)
• February: Additional orders are $60 and $40 (new AOV: $50)
• March: Additional orders are $30 and $35 (new AOV: $44.2)

With each new order, the average order value is recalculated.

Here's an overview of all available deviation goals:

• AOV
• LTV
• Share of Repeat Purchasers
• Gross Margin
• Product Return Rate

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