Business Metrics
Configure business metrics for accurate ROI tracking and analytics
Configure your business metrics to enable accurate ROI calculations, profitability analysis, and program performance tracking in the Analytics dashboard.
Why Configure Business Metrics?
Without business metrics, RewardsPro can only show basic revenue numbers. With properly configured metrics, you get:
Total cashback issued
Net profit impact
Revenue from loyalty customers
True ROI percentage
Order counts
Cost-adjusted profitability
Basic trends
Break-even analysis
Accessing Business Metrics
Go to Settings in the main navigation
Select the Store Metrics tab
Or access directly from Analytics → Configure Metrics
Configurable Metrics
Average Profit Margin
Your typical profit margin as a percentage of revenue.
Format
Percentage (0-100+)
Example
40 means 40% profit margin
Used For
ROI calculations, profitability analysis
How to calculate:
Average COGS Percentage
Cost of Goods Sold as a percentage of revenue.
Format
Percentage (0-100+)
Example
35 means COGS is 35% of revenue
Used For
Gross profit calculations
Relationship with Profit Margin:
Average Shipping Cost
Your typical shipping cost per order.
Format
Currency amount
Example
5.50 means $5.50 per order
Used For
True cost calculations
Consider including:
Packaging materials
Carrier costs (averaged)
Handling labor (if significant)
If you offer free shipping, still enter your actual cost here for accurate profit calculations.
Average Order Value (AOV)
Your historical average order value.
Format
Currency amount
Example
85.00 means $85 average order
Used For
Benchmarking, projections
How to find this:
Go to Shopify Admin → Analytics → Reports
Look for "Average order value" in your sales reports
Use a 3-6 month average for stability
Target ROI Percentage
Your desired return on investment for the loyalty program.
Format
Percentage (0-100+)
Example
300 means 3x return target
Used For
Performance benchmarking
Understanding ROI targets:
100%
Break even
Minimum acceptable
200%
2x return
Conservative goal
300%
3x return
Healthy program
500%+
5x+ return
High-performing program
How Metrics Affect Analytics
ROI Calculation
With configured metrics, RewardsPro calculates:
Break-Even Analysis
Shows how much revenue is needed to cover cashback costs:
Profitability Dashboard
The Analytics page shows:
Net Program Profit: Revenue × Margin - Cashback
Cost per Acquisition: Cashback per new customer
Lifetime Value Impact: How loyalty affects CLV
Margin-Adjusted Metrics: True profitability numbers
Best Practices
Setting Accurate Metrics
Use historical data - Don't guess, pull from your accounting
Update quarterly - Refresh metrics as your business changes
Be conservative - Slightly lower margins = realistic expectations
Include all costs - Don't forget hidden costs in COGS
Common Mistakes
Ignoring shipping costs
Overstated profits
Include actual shipping cost
Using list price margin
Inflated ROI
Use actual realized margin
Forgetting discounts
Wrong calculations
Use post-discount revenue
Outdated metrics
Misleading analytics
Update quarterly
Recommended Update Schedule
Profit Margin
Quarterly
COGS
Quarterly
Shipping Cost
When rates change
AOV
Monthly
Target ROI
Annually
Example Configurations
E-commerce (Physical Products)
Digital Products
Fashion/Apparel
Food & Beverage
Troubleshooting
Analytics Not Showing ROI
Verify all metrics are filled in
Check that values are positive numbers
Ensure profit margin is reasonable (1-100%)
Refresh the Analytics page
Numbers Look Wrong
Double-check your margin calculation
Verify currency is correct
Ensure AOV matches your Shopify data
Review COGS vs margin relationship
Last Updated Shows Old Date
Make a small change to any metric
Click Save
Timestamp will update automatically
Last updated