Multiplied by Frequency - the Frequency Rate #/time Ancillary Products number of they come back Referral Rate Back-end sales (or refer others) Till Further Notice Frequent Programs Database Management Targeted – marketing Special Offers/Events Programmed Referral Processes Host Beneficiary Relationships Endorsements Multiplied by Transaction Value $ Up-sells Average Sale Value Marginal Net Worth Bundling Packaging Perceived Added Value Price - Offer Point of Sale Impression Source/Avg. $ Value Incentives Merchandising Payment Options Tracking Systems - Database management Host Beneficiary Relationship Endorsements Referrals Repeat Warm vs. Cold EQUALS Gross Revenues C. Gross Revenues Cost of Goods Overhead = Net Profit – – Key Performance Impacting Factors & Critical Success Factors Indicators Activity Measures Outcome Measures Gross Revenues COG % Buying - Negotiations less Cost of Sales % Relationship Longevity Credit terms – – Cost of Direct Variable Cost Inventory
Multiplied by Frequency - the number of they come back (or refer others) Frequency Rate #/time Referral Rate Ancillary Products Back-end sales Till Further Notice Frequent Programs Database Management – Targeted marketing Special Offers/Events Programmed Referral Processes Host Beneficiary Relationships Endorsements Multiplied by Average Sale Value Transaction Value $ Marginal Net Worth Source/Avg. $ Value Up-sells Bundling Packaging Perceived Added Value Price - Offer Point of Sale Impression Incentives Merchandising Payment Options Tracking Systems - Database management Host Beneficiary Relationship Endorsements Referrals Repeat Warm vs. Cold EQUALS Gross Revenues C. Gross Revenues – Cost of Goods – Overhead = Net Profit Critical Success Factors Key Performance Indicators Outcome Measures Impacting Factors & Activity Measures Gross Revenues less Cost of COG % Cost of Sales % Direct Variable Cost Buying - Negotiations Relationship – Longevity – Credit terms Inventory