What are some common metrics used in business analysis?
An example of an AI chatbot conversation about common business metrics and their significance.
What are some common metrics used in business analysis?
Common metrics include ROI, customer acquisition cost, and net profit margin. Would you like to know more about any specific metric?
Can you explain ROI?
ROI, or Return on Investment, measures the profitability of an investment. It's calculated by dividing the net profit by the initial investment cost.
What about customer acquisition cost?
Customer Acquisition Cost (CAC) is the total cost of acquiring a new customer, including marketing and sales expenses. It's crucial for understanding the efficiency of your marketing efforts.
How do I calculate net profit margin?
Net Profit Margin is calculated by dividing net profit by total revenue and multiplying by 100 to get a percentage. It shows how much profit a company makes for every dollar of revenue.
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