What is the Transaction Value Metric?
The Transaction Value metric represents the total sum of all completed transactions within a given period, excluding refunds. It provides a direct measure of the total revenue generated from successful purchases, using the default publisher currency.
You can find it in the Cleeng Dashboard under Analytics.
How is it Calculated?
The calculation involves summing up the value of all completed transactions:
Transaction Value = Sum of all transaction revenue in the specified period
This means adding up the monetary value of each successful purchase. So if five $10 transactions take place, then your transaction value will be calculated as $50.
How to Use the Transaction Value Metric in a Subscription Business
The Transaction Value metric is essential for understanding the overall revenue generated from completed transactions. You can use it to:
- Track Revenue Performance: Monitor the total transaction value over time to assess the overall financial health of your business.
- Evaluate Sales Trends: Identify trends in transaction value to understand seasonal variations or the impact of specific events or promotions.
- Forecast Revenue: Use transaction value trends to forecast future revenue and plan for resource allocation.
FAQs
Are payment fees included in the Average Transaction Value?
Yes, the Average Transaction Value includes payment fees. It reflects the total value of the transaction as processed, including any associated payment processing charges.
How does Transaction Value differ from MRR?
Transaction Value includes all completed transactions, while MRR focuses specifically on recurring revenue from subscriptions. Transaction Value captures one-time purchases and other non-subscription revenue.
How does Transaction Volume differ from Transaction Value?
Transaction Volume counts the number of transactions, while Transaction Value measures the total monetary value of those transactions. They provide different perspectives on sales performance.
Why is it important to track Transaction Value alongside Transaction Volume?
Tracking both metrics provides a more complete picture of sales performance. Transaction Volume indicates the quantity of sales, while Transaction Value indicates the revenue generated.