Polaris Growth - eCommerce Growth Formula [MAKE A COPY]

	A	B	C	D	E	F	G	H	I	J	L
1	KPIs	Initial status	Uplift	Best case scenario (everything +20%)	What-if scenario (+20% traffic)	What-if scenario (+20% conversion rate)	What-if scenario (+20% PF)	What-if scenario (+20% AOV)	What-if scenario (-20% CAC)	What-if scenario (+20% Gross Margin)

2	Traffic	2,700,000	20%	3,240,000	3,240,000	2,700,000	2,700,000	2,700,000	2,700,000	2,700,000
3	Conversion rate	2.70%	20%	3.24%	2.70%	3.24%	2.70%	2.70%	2.70%	2.70%
4	Total Customers	72860		149108	131622	131622	117050	117050	117050	117050
5	Newly acquired Customers	28670		104,918	87,432	87,432	72,860	72,860	72,860	72,860
6	Existing customers	44190		44190	44190	44190	44190	44190	44190	44190
7	PF (Purchase Frequency)	1.42	20%	1.70	1.42	1.42	1.70	1.4	1.4	1.4
8	AOV (Average Order Value)	€54	20%	€65	€54	€54	€54	€65	€54	€54
9	Initial Revenue (Customers x AOV x PF)	€5,562,074		€16,391,210	€10,047,887	€10,047,887	€10,722,566	€10,722,566	€8,935,472	€8,935,472
10	CAC (Customer Acquisition Cost)	€15	0.20	€12	€15	€15	€15	€15	€12	€15
11	Projected Revenue per Cohort	€5,784,557		€17,046,858	€10,449,802	€10,449,802	€11,151,469	€11,151,469	€9,292,891	€9,292,891
12	Gross Margin	20%	20%	24%	20%	20%	20%	20%	20%	24%
13	Projected Gross Margin per Cohort	€1,156,911		€2,301,950	€2,089,960	€2,089,960	€2,230,294	€2,230,294	€1,858,578	€2,230,294
14	Revenue uplift			195%	81%	81%	93%	93%	61%	61%
15	Gross Margin uplift			99%	81%	81%	93%	93%	61%	93%
16	CLV (by revenue)	€108		€187	€108	€108	€156	€130	€108	€108
17	CLV (including CAC & margin)	€7		€33	€7	€7	€16	€11	€10	€11
18	CLV / CAC	0.45		2.75	0.45	0.45	1.08	0.73	0.81	0.73
19	Total Customer Acquisition Cost	€430,056		€1,259,021	€1,311,480	€1,311,480	€1,092,900	€1,092,900	€874,320	€1,092,900
20	Projected Net Margin per Cohort	€726,855		€1,042,929	€778,480	€778,480	€1,137,394	€1,137,394	€984,258	€1,137,394
21	Net Margin Uplift			43.49%	7.10%	7.10%	56.48%	56.48%	35.41%	56.48%
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23	How to use this tool: (after you make a copy of this file in your drive)
24	Step 1: Set the initial values in column B - only fields highlighted with Yellow
25	Step 2: Adjust the margin according to your own shop - Cell B12
26	Step 3: Adjust the realizable objectives for each of the 5 KPIs - Column C
27	Step 4: Analyze the impact and act accordingly
28	Want to read more about CVO and how to improve CLV? Check this Article (In English) or Check this article (In Dutch) on the Polaris Growth Blog
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30	Want to become even more data-driven? Reveal is the first Shopify tool that empowers eCommerce merchants to improve their CLV by understanding their customers and using RFM Segmentation										Install Reveal for free here>
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