Glossary
Retail & CX metrics, explained one by one.
Definition, formula, a working calculator and honest benchmarks for each metric — plus the blind spot each one carries. New terms are added continuously.
- Sell-out (vs sell-in) →
What sell-out is, how it differs from sell-in and sell-through, how to calculate channel flow-through — and why brands live on what leaves the store.
- Churn rate →
What churn rate is, how to calculate it, monthly benchmarks by business model — and why churn tells you who left but never why they left.
- Markup →
What markup is, how to calculate it, the classic markup vs margin confusion — and why the right markup on paper still fails when the store doesn't convert.
- LTV — Customer lifetime value →
What customer lifetime value is, the retail formula (average ticket × frequency × years), healthy LTV:CAC ratios — and the blind spot in every LTV projection.
- Contribution margin →
What contribution margin is, formula and calculator, how it differs from gross margin and markup — and how the sales conversation decides your real mix.
- Inventory turnover →
What inventory turnover is, the ratio formula, a working calculator, healthy turns by retail segment — and the sales-floor lever most retailers forget.
- Foot traffic (footfall) →
What foot traffic (footfall) is, how retailers count it, the foot traffic × conversion × ticket funnel — and what people counters never see.
- GMROI — Gross Margin Return on Inventory →
What GMROI (Gross Margin Return on Inventory) is, how to calculate it, healthy benchmarks by retail segment — and the variable the formula hides.
- CES — Customer Effort Score →
What the Customer Effort Score measures, how to calculate it on the 1–7 scale, what a good CES looks like — and the friction the survey can never locate.
- Retail shrinkage →
What retail shrinkage is, the four classic causes, how to calculate it as a share of sales — and the invisible shrink no inventory count ever captures.
- DIO — Days of inventory (DSI) →
What days inventory outstanding (DIO/DSI) means, how to calculate it, typical days by retail segment — and the blind spot the inventory report never shows.
- COGS — Cost of goods sold →
What counts in cost of goods sold (COGS), how to calculate it from inventory and purchases, benchmarks by segment — and why a great COGS still needs the sale.
- ABC analysis (ABC curve) →
What ABC analysis is, how to build the ABC curve step by step, the classic cut-offs by class — and the high-margin items the curve never shows you.
- Break-even point →
What the break-even point is, the three variants, how to calculate it per store — and why the number is set in the spreadsheet but reached on the sales floor.
- Trade marketing →
What trade marketing is, its four pillars, how to measure it — incremental sell-out, share of shelf, action ROI — and the blind spot shelf audits never see.
- Stockout (out of stock) →
What a stockout is, how to measure the out-of-stock rate, phantom inventory, honest benchmarks — and the one stockout no inventory system can detect.
- Safety stock →
What safety stock is, the max/average formula with a working calculator, typical coverage by category — and the source of demand variability nobody models.
- Inventory accuracy →
What inventory accuracy is, how to measure it by item and by value, benchmarks by maturity — and why a system that matches the shelf still doesn't sell.
- Attach rate →
What attach rate is, how to calculate it, honest benchmarks by retail category — and why attach measures offer frequency, not luck or customer profile.
- Same-store sales (SSS) →
What same-store sales measures, how to build a comparable base, healthy growth benchmarks — and the one question SSS can never answer: why the store grew.
- Product mix →
What product mix is — breadth, depth and category share — how category roles set margin, and why the mix you planned is not the mix customers actually buy.
- Sales per square foot →
What sales per square foot measures, how to calculate and compare it fairly, benchmarks from Apple to grocery — and what actually moves the number.
- Customer retention rate →
What customer retention rate is, how to calculate it without fooling yourself, how it mirrors churn — and the one thing retention data can never show you.
- UPT — Units per transaction →
What UPT (units per transaction) is, how to calculate it, benchmarks by retail category — and why the average hides the sellers who never offer a second item.
- AOV — Average order value →
What average order value is, how to calculate it, e-commerce benchmarks by category — and how AOV differs from the in-store average transaction value.
- OTB — Open to buy →
What open to buy is, how to calculate and operate it by category, the classic buying mistakes — and the conversion assumption every OTB plan takes on faith.
- Markdown (retail) →
What a markdown is (vs a promotion), the early-vs-late math, the 20–30% to clearance cadence — and the part of markdowns that was never about price.
- Basket analysis (market basket analysis) →
What market basket analysis is, how support, confidence and lift work in plain language, what to do with each finding — and the step data alone cannot take.
- SPLH — Sales per labor hour →
What sales per labor hour measures, how to calculate SPLH, benchmark ranges by retail segment — and why a low SPLH has two opposite diagnoses.
- Stock-to-sales ratio →
What the stock-to-sales ratio is, how to calculate it from beginning-of-month inventory, target ranges by segment — and the assumption hidden in the denominator.
- Numeric distribution →
What numeric distribution is, how to calculate the share of stores that bought, healthy ranges by brand stage — and why a stocked store is not a sold product.
- Repeat purchase rate →
What repeat purchase rate is, how to calculate it, honest benchmarks by retail category — and why the second sale is decided during the first conversation.
- NPS calculator →
Free NPS calculator: enter promoters, passives and detractors to get your score instantly — with the score zones and what a good NPS actually looks like.
- CSAT — Customer Satisfaction Score →
What CSAT is, how to calculate it, what a good score looks like by industry — and the one thing a satisfaction survey can never measure.
- Sell-through rate →
What sell-through rate is, how to calculate it, healthy benchmarks by category — and why two stores with the same inventory sell through it at very different speeds.