Deloitte Challenges Retailers To Look At Their Businesses Using New Retail Metrics

“Deloitte has done more than just talk about it. The firm has proposed a new retail metrics model in a report entitled “The Future of Retail Metrics: Measuring Success in a Shifting Marketplace.”

  1. Retail-profit-per-transaction
  2. Sales-per-unique-customer
  3. Enterprise value measures revenue growth, return on invested capital (ROIC) and free-case flow (FCF)”

KPIs to measure ROI of a digital bank

“An Avaya survey in India a couple of years ago found that 51% of Indians use online banking. Another report by the Office for National Statistics says 69% of UK population bank online.

Cost to acquire a typical customer (CAC)

  • The expenses put in by sales and marketing teams divided by the number of new customers added on to the repository would define CAC,

Lifetime value of a typical customer (LTV)

  • LTV, also known as customer lifetime value (CLV) or lifetime customer value (LCV) is a forecasting method to estimate the projected revenue from a customer over the lifetime of their relationship with your business.

DIY Service

  • With digital banking, research suggests that you can save up to $5 on a branch visit, $2.50 for a customer call to a call centre.

As per research done by Capgemini and MIT Sloan, businesses who recognise the value of digital transformation are on average 26% more profitable than their competitors and have valuations that are 12% higher.”