Validated Metrics – Page 3

Average Basket Size (ABS) is an ecommerce metric that measures the average number of items purchased per transaction. It is calculated by dividing the total number of units sold by the total number of transactions over a given period. ABS helps businesses understand whether customers are buying more or fewer items each time they place an order. Average Basket Size is also a key input for calculating Average Order Value (AOV) when combined with Average Selling Price (ASP), helping teams distinguish whether revenue changes are driven by quantity, pricing, or both.

Average Order Value (AOV) measures the average amount of revenue generated per order over a defined period of time. It is calculated by dividing total revenue by the total number of orders placed during that period. AOV can be tracked over any time frame—daily, weekly, monthly, or over the lifetime of an e-commerce business—and is a key indicator of purchasing behaviour.

Average Purchase Frequency is the average number of times a customer makes a purchase within a defined period. It measures how often customers return to buy, helping businesses understand purchase patterns, inform loyalty strategy, and improve customer lifetime value.

Average Revenue Per User (ARPU) is a company's generated revenue that is averaged across all users and reported as a monthly or yearly value. ARPU is a top-level metric, that can easily be normalized and is often cited as a comparative measure between similar companies.

Average Selling Price (ASP) measures the average price at which a product or service is sold over a defined period of time. It can be calculated for a single product or service, a group of products, a sales channel, or an entire business. ASP is commonly used to compare performance across businesses, segments, or channels and serves as a strong indicator of what customers are willing to pay for similar products or services.

Average Server Response Time is the average amount of time an application’s web server takes to return the results of a request to the user. It is affected by several factors including network bandwidth, number of users, and number and type of requests submitted.

Average Session Duration measures the average amount of time users spend per session on your website. It is calculated by dividing the total time spent across all sessions by the total number of sessions. This metric helps you understand overall engagement and whether users are consuming your content in a meaningful way.

Average Time on Page is a web analytics metric that measures the average time all users spend on a single page, excluding exit pages and bounces. Exit pages are the last pages in a session; bounces are single-page sessions. Because the metric excludes these, it reflects only engaged, multi-page visits.

Base Net Burn is your Net Burn minus variable customer acquisition costs (CAC). It isolates the operational burn your business carries independent of growth investment, showing whether the business could survive without growth spending.

Bessemer Efficiency Score is a measure of capital efficiency that tracks net new ARR against net burn for a given period. This metric showcases the incremental ARR dollars added for every dollar of burn, effectively measuring a company’s spending habits.

In an hour-based agency, the billable utilisation serves as a crucial metric, representing the percentage of billable hours employees spend on billable client projects. A higher billable utilisation indicates optimal efficiency and resource allocation, while a lower rate may suggest under-utilisation or potential areas for workflow improvement.

Bookings is a key sales metric that is calculated by taking the total dollar value, including subscription, implementation, and discounts, that a customer has committed to spend for a product or service within a specified period.