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Tydo's Glossary

Ecommerce metrics—in plain English.

Introducing Tydo's Glossary

Ecommerce metrics are complex. We totally get it.

AOV. Net Sales. Conversion Rate. Total Ad Spend. What do these metrics mean? How do you calculate them? Why do they matter for your store? 

Meet, The Tydo Glossary. 

What is AOV? 

Definition: AOV stands for “Average Order Value.” This is the average dollar amount a user spends when they place an order with your store. Your AOV number in Tydo will look different than what you see in Shopify, and that’s because we’re using our Sales calculation. 

Formula: AOV = Sales / Total Orders

Data Sources: Tydo, Shopify 

Example: Let’s say Sarah, Kevin, and Katie all buy products from a kitchenware store this week. Sarah buys the cookware set for $395. Kevin buys the complete bakeware set for $395. And, Katie buys oven mitts for $35 and a linen apron for $55. The sum of those sales = $880. How many orders were placed? 3. So, the average order value is $880 / 3 = $293.33

What is Attributed Sales?

Definition: This metric shows you where your dollars are coming from (information from your ad channels). With recent iOS updates, these numbers are very low fidelity, which is just something to keep in mind. 

Formula: Attributed Sales of Channel X = Sales from Channel X

Data Sources: Connected Ad Channels (i.e. Facebook, Google Ads, etc)

Example: Suppose for the month of April, you run paid ads for your gluten-free granola company on Instagram. In Instagram, you see that your ads drove 200 people to make a purchase on your site (woo!). Those 200 customers brought in $1,200 worth of sales. That’s the attributed sales from Instagram as a channel. 

What is Blended CAC? 

Definition: CAC stands for "Customer Acquisition Cost". This is the marketing cost needed to acquire a new customer. It’s blended because it includes all your connected marketing channels. It’s represented in dollars. 

Formula: Blended CAC = Total Ad Spend / # of new customers

Data Sources: Connected ad channels (i.e. Facebook, Google Ads, etc), Shopify

Example: Let’s say you run a perfume business. For the month of April, you spent $4,000 on Facebook ads and $3,000 on Google Ads. In April, you acquired 900 new customers. Your Blended CAC is $7.78. 

What is Blended CPA? 

Definition: CPA stands for "Cost per Acquisition". This is the marketing cost needed to transact a single order. CPA refers to all orders, not just new orders. 

Formula: CPA = Total ad spend from all connected ad channels / Sum of orders placed

Data Sources: Shopify, Connected Ad Channels (i.e. Facebook, Google Ads, etc)

Example: Last month, you spent $30,000 on paid ad channels—spread across TikTok, Instagram, Snapchat, and Pinterest. Looking at all those channels and your Shopify data, you see that there were 75,000 orders. So, your CPA = 30,000 / 75,000 = $0.4 

What is Blended ROAS? 

Definition: This multiple tells you how much sales you make for every dollar you spend. You can think of it like this: All Sales / (Facebook Spend + Google Ad Spend + spend from any other connected channel 

Formula: Blended ROAS = Dollar value of sales / Total ad spend from all connected ad channels 

Data Sources: Shopify, Connected Ad Channels (i.e. Facebook, Google Ads, etc)

Example: Let’s say you run Facebook Ads, Google Ads, and Snapchat Ads for the month of February. You spend $2,000 on Snapchat, $10,000 on Facebook, and $7,500 on Google Ads. You drive about $1,000 worth of sales from Snapchat, $15,000 from Facebook, and $6,000 from Google Ads. Your Blended ROAS = (1,000 + 15,000 + 6,000) / 19,5000 = 1.13x. 

What is Conversion by Medium? 

Definition: The percentage of site visitors who place an order, broken down by medium. Google Analytics defines medium as “the general category of the source, for example, organic search (organic), cost-per-click paid search (cpc), web referral (referral).” This will look different depending on whether or not you set up UTM parameters. As a reminder: Conversion rate = (orders / users) x 100 

Formula: Conversion by Medium A = Number of orders by Medium A

Data Sources: Google Analytics 

Example: In April, you had 5,000 orders. 500 of those orders came from SMS campaigns, 1,000 came from an email campaign, 3,500 came from paid social ads. 

What is Conversion by Medium? 

Definition: The percentage of site visitors who place an order, broken down by medium. Google Analytics defines medium as “the general category of the source, for example, organic search (organic), cost-per-click paid search (cpc), web referral (referral).” This will look different depending on whether or not you set up UTM parameters. As a reminder: Conversion rate = (orders / users) x 100 

Formula: Conversion by Medium A = Number of orders by Medium A

Data Sources: Google Analytics 

Example: In April, you had 5,000 orders. 500 of those orders came from SMS campaigns, 1,000 came from an email campaign, 3,500 came from paid social ads. 

What is CPA by Channel? 

Definition: This is the marketing cost needed to transact a single order, broken down by channel. ICYMI: CPA stands for “Cost per Acquisition.” 

Formula: CPA by Channel = Ad spend from Channel A / Number of orders from Channel A

Data Sources: Connected Ad Channels (i.e. Facebook, Google Ads, etc)

Example:  Let’s assume that TikTok is the best marketing channel for your brand. Last month, you spent $4,000, and you received 5,000 orders from TikTok. That means your CPA = 4,000 / 5,000 = $0.80. 

What is Facebook Spend? 

Definition: The dollar value of ad costs on Facebook.

Formula: Facebook Spend = Total spent on Channel

Data Sources: Facebook 

Example: For Q1, you decide to prioritize running ads for your kombucha brand on Facebook. Over the course of the quarter, you spend $10,000 on Facebook ads. That’s your total Facebook Spend. 

What is Google Ads Spend? 

Definition: The dollar value of ad costs on Google.

Formula: Google Ads Spend =  Total spent on Channel

Data Sources: Google Ads 

Example: For Q1, you decide to prioritize running ads for your coffee brand on Google Ads. Over the course of the quarter, you spend $7,500 on Google ads. That’s your total Google Ads Spend. 

What are Orders? 

Definition: The total count of transactions made on Shopify. 

Formula: Orders = Number of Orders

Data Sources: Shopify 

Example: Imagine you run a pottery store. Today, Rachel buys 2 mugs, Greg buys 6 wine glasses, Dan buys your party pack (6 dinner plates, 6 glasses), and Mariah buys 4 mugs. So, orders = 4. 

What is Orders by Customer type? 

Definition: This metric allows you to understand what percentage of your sales are made up of new vs. returning customers.

Formula: 

New = Shopify user with 1 order 

Returning = Shopify user with 1+ order 

New Orders = Number of new orders (Shopify)

Returning Orders = Number of returning orders (Shopify)

% New Orders = New Orders (Shopify) / (New Orders (Shopify) + Returning Orders (Shopify)) x 100 

% Returning Orders = Returning orders (Shopify) / (New orders (Shopify) + Returning Orders (Shopify)) 

Data Sources: Shopify 

Example: Let’s say you run an activewear brand. This month, you had 40 new customers and 10 returning customers. So, the percentage of new orders = 80%. And, the percentage of returning orders = 20%. 

What is Product Performance? 

Definition: This metric allows you to see the dollar value created by each product. You can think of Product Performance as Product Sales - (Product Discounts + Product Returns). We include returns here because we want to understand the value of individual products and have a better grasp of which products perform best. 

Formula (by dollar value): Dollar value of product price (Shopify) - dollar value of discount used (Shopify) - dollar value of returns (Shopify)

Formula (by units): Number of units sold (Shopify) - Number of units returned (Shopify)

Data Sources: Shopify 

Example: Imagine you run a candle company. You have three SKUs: a sugarplum candle, a sriracha rose candle, and a grapefruit candle. Each candle is $40, and for new customers, you offer a 10% discount code. 

The sugarplum candle is your newest product, and you want to see if it’s driving sales. That’s when you can look at Sales by Product. In the month of April, there were 100 orders that included the sugarplum candle. 20 of those orders were first-time customers, who used the 10% discount code. There were 2 returns of the sugarplum candle. 

So, your Product Performance = 4,000 - 720 - 80 = $3,200. 

What is ROAS by Channel? 

Definition: ROAS stands for “Return on Ad Spend.” This is a marketing efficiency metric that shows the average dollar made for every dollar spend on advertising. You can think of it as your Channel Attributed Sales / Channel Spend. In Tydo, we express this as a multiple not a percentage. 

Important Note: Some people refer to ROAS as MER (Marketing Efficiency Ratio). 

Formula: ROAS = Dollar value of sales coming from Channel A / Ad spend of Channel A

Data Sources: Shopify, Connected Ad Channels (i.e. Facebook, Google Ads, etc)

Example: For a 3-month period, you run TikTok Ads for your clean makeup brand. Over those three months, you spend $5,000. From seeing those TikTok ads, 1,000 people convert into paying customers and buy your products. All their orders add up to $65,000. That means your ROAS = 65,000 / 5,000 = 13. 

What are Sales? 

Definition: This is the value of all sales, including shipping and minus any discounts applied. Here, we are only interested in the money coming into your business. 

Important Note: The way we calculate Sales is unique to Tydo. So, your sales in your Shopify Analytics dashboard will look different than what you see in Tydo’s Platform. This is how Shopify calculates Total Sales: Total Sales = gross sales - discounts - returns + taxes + duties + shipping charges. 

We don’t include taxes and shipping in Tydo’s definition because both of those values are what they are, meaning we can’t control or increase or decrease those values. We don’t subtract returns because of how the logistics of returns work, which typically screws up the data.

Formula: Sales = Dollar value of product price (Shopify) + dollar value of shipping charges (Shopify) - dollar value of discount used (Shopify) 

Data source: Shopify 

Example: It’s been about a year since you launched your business, and it’s time for an annual review. Looking back on the year, your customers purchased $50,000 worth of products, but that’s not your sales number. You have to account for your discounted orders and shipping revenue. Over the course of the year, customers redeemed $10,000 worth of discounts, and you made $5,000 in shipping revenue. So, your sales = $50,000 - $10,000 + $5,000 = $45,000. 

What is Total Ad Spend? 

Definition: The sum of all the marketing dollars you’ve spent across your Tydo-integrated marketing channels. Think: Facebook spend and Google Ads spend. 

Formula: Total Spend = Channel A Ad Spend (Channel A) + Channel B Ad Spend (Channel B) + Channel C Ad Spend (Channel C) 

Data sources: All marketing channels 

Example: For Q1, let’s say you allocate your paid media budget to Snapchat, TikTok, and Facebook. You spend $1,000 on Snapchat, $2,500 on TikTok, and $5,000 on Facebook. Your total spend for that quarter = $8,500. 

What are Users? 

Definition: We can think of Users as the number of unique visitors to your site during a certain time period. The way we define “Users” is different than “Sessions,” which measures the number of times your site is visited in total. Sessions include when someone visits your site multiple times, whereas Users do not. 

Formula: Users = Total individuals who visit your site

Data Sources: Google Analytics 

Example: Every day people visit your site…hopefully to purchase one of your products! Let’s say you run a clean cosmetics brand. In Google Analytics, you can see the number of users visiting your site. Let’s say that number is 300 for the month of April. That means 300 people visited your site at least once in April. They may have come back another time, but we’re only counting unique visits here. Some of those 300 people may have converted into paying customers. We can find that out by looking at Conversion Rate. 

What is Conversion Rate? 

Definition: The percentage of users who take a specific action. Here, we’re looking at users who placed an order. It’s shown as a percentage. 

Important note: This number might look different than what you typically see in Shopify and Google Analytics. That’s because both tools use “Sessions” instead of “Users.” But, at Tydo, we want to see of the people who went to your site what percentage actually converted. 

It’s easy to understand this metric if we look at it in the brick-and-mortar context. If Ellen visits your in-person candle store, and she comes back 5 times in one day because her shopping experience keeps getting interrupted, those 5 times don’t matter. The only time that matters is the one time she actually makes a purchase.

Formula: Conversion Rate = (Total Orders / Users) x 100  

Data Sources: Google Analytics, Shopify 

Example: Suppose you run a ceramics brand, where you sell handmade mugs and dinnerware. In the month of April, you had 500 users who came to your site, and there were 15 orders placed. That means your Conversion Rate = (15 / 200) x 100 = 7.5% 

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