Frequently Asked Questions

Your questions, answered.


Who is Segments for?

Do I have enough data to use Segments?

What do I get with the "Free Forever" plan?

What integrations do you support?

How do I know my data is protected?

I have a feature or insight request. Can you build it?


How long does it take to get started?

What do I get access to on signup?


How do you define certain metrics?

Accounting

  • Gross revenue
  • Net revenue
  • Cost of goods sold (COGS)
  • Gross profit
  • Gross profit after advertising costs (GPAAC)
  • % Discount

Funnel

  • Signups
  • Customers
  • First-time customers
  • Activated customers
  • Repeat customers
  • Unsubscribes
  • Churned

Key Performance

  • Average order value (AOV)
  • Average orders per user (AOPU)
  • Average revenue per user (ARPU)
  • Customer lifetime value (CLV)
  • Average days between purchases (ADP)
  • Acquisition to churn rate (ACR)
  • Repurchase Rate

Accounting

Gross revenue

Total sales after discounts, but before refunds, shipping, and taxes.

Gross revenue = Total sales - Discounts

Net revenue

Total sales after discounts and refunds, but before shipping and taxes.

Net revenue = Total sales - (Discounts + Refunds)

We always use net revenue where applicable.

Cost of goods sold (COGS)

Cost of the sold products, not including shipping and taxes.

Gross profit

Profit after deducting COGS, shipping, and taxes from net revenue.

Gross profit = Net revenue - (COGS + Shipping + Taxes)

Gross profit after advertising vosts (GPAAC)

Profit after deducting advertising costs from gross profit.

GPAAC = Gross profit - Advertising costs

% Discount

Discount percentage of total sales.

% Discount = Total discounts / Total sales

Funnel

Signups

Users who have submitted an email address, whether for creating an account or signing up for newsletter.

Customers

Users who have purchased something.

First-time customers

Users who have purchased something for the first time in a given time period.

Activated customers

Users already signed up by the beginning of the time period, and who have purchased something for the first time during the time period.

Repeat customers

Customers who have purchased something during a given time period, having purchased only 1 order by the start of the time period.

Churned users

Users whose last order date is more than 2x ADP days, or users who signed up more than 2x ADP days ago with no purchase.

Churned = [(Days since last order) or (Days since signup)] > (ADP * 2)

Key Performance

Average order value (AOV)

Average net revenue per non-fully-refunded order.

AOV = Net revenue / Orders

Average orders per user (AOPU)

Average number of non-fully-refunded orders per buyer.

AOPU = Orders / Buyers

Average revenue per user (ARPU)

Average net revenue per buyer of any non-fully-refunded order.

ARPU = Net revenue / Buyers

Customer lifetime value (CLV)

Forecasted net revenue for a customer normalized over 2 years.

Details: Simple CLV, Advanced CLV

Average days between purchases (ADP)

Average days between purchases across all orders.

ADP = Days between orders / Orders

Acquisition to churn rate (ACR)

New users (email signups and/or buyers) relative to churned users. ACR > 1 means acquisition exceeds churn, ACR < 1 means acquisition is lower than churn.

ACR = Signups / Churned

Repurchase Rate

Percentage of customers who made more than 1 purchase within a given period.

Repurchase Rate = Customers with > 1 orders / Customers