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Business Metrics Every Data Analyst Must Know✅ Revenue Metrics - Revenue: Total income from sales (e.g., monthly revenue ₹25 lakh) - Gross Revenue vs Net Revenue: Gross (before costs), Net (after discounts and returns) - Average Order Value: Revenue ÷ number of orders (e.g., ₹1,200 per order) Growth Metrics - Growth Rate: (Current − Previous) ÷ Previous (e.g., 15% month-over-month) - Year-over-Year Growth: Compare same period last year Customer Metrics - Customer Count: Total active customers - New vs Returning Customers: Shows retention strength - Customer Acquisition Cost: Total marketing spend ÷ new customers - Customer Lifetime Value: Total revenue from one customer over time Retention and Churn - Retention Rate: Customers who stayed ÷ total customers - Churn Rate: Customers lost ÷ total customers (e.g., 1,000 customers, lost 50, churn rate 5%) Marketing Metrics - Conversion Rate: Conversions ÷ visitors - Click-Through Rate: Clicks ÷ impressions - Return on Ad Spend: Revenue ÷ ad spend Product Metrics - Daily Active Users: Users active per day - Monthly Active Users: Users active per month - DAU to MAU Ratio: Engagement strength Operations Metrics - Order Fulfillment Time: Time to deliver order - Defect Rate: Defective units ÷ total units Mini Task Pick one business (E-commerce or EdTech). List 5 metrics it should track. Write one question each metric answers. Let's take E-commerce: 1. Revenue: What's our total sales this month? 2. Customer Acquisition Cost: How much are we spending to acquire each new customer? 3. Retention Rate: How many customers are coming back to shop? 4. Average Order Value: What's the average amount customers are spending per order? 5. Order Fulfillment Time: How quickly are we delivering orders? Double Tap ♥️ For More