Using Adobe Analytics to Automate Revenue Impact Calculation for Adobe Target Tests

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Revenue Impact refers to the influence that changes or interventions have on an organization’s total revenue. It serves as a tangible measure of success and informs decision-making. For organizations aiming for growth and optimization, revenue impact is a critical tool. The formula for Revenue Impact is as follows: 

Daily Unique Visitors x Conversion Rate x AOV x 364 x Lift 

1. Daily Unique Visitors: This represents the number of distinct visitors to your website in a single day. It’s a crucial metric for understanding your site’s traffic.
2. Conversion Rate: The conversion rate is the percentage of visitors who perform a desired action, such as making a purchase or signing up. It’s calculated as the number of orders divided by the number of unique visitors. 
3. Average Order Value (AOV): AOV reflects the average amount of money a customer spends per order. It’s calculated as total revenue divided by the number of orders. 
4. Lift: Lift refers to the positive change or impact resulting from an intervention, such as an A/B test. In our case, we’ll explore different lift percentages—specifically 2%, 3%, and 5%—to understand the potential impact of this test. By analyzing these variations, we can gauge the range of effects the intervention might have on our desired outcome.

Within Analysis Workspace, you can create a calculated metric as an automated way of measuring Revenue Impact. 

1. Start with the number of Daily Unique Visitors. This represents the number of daily visitors to the specific page, such as the Product Detail Page. You can select any page on the site where you will run a test.
2. Multiply by Orders (Participation per Visit) divided by Unique Visitors.
3. Multiply by Revenue (Participation per Visit) divided by Orders (Participation per Visit).
4. To mitigate the impact of seasonality, multiply the outcome by 364, which corresponds to the number of days in a year.
5. Multiply by 0.02, which represents a 2% lift. Repeat this step using 0.03 and 0.05 to represent a 3% and 5% lift to have a range.

Shown below are the calculated metrics for Revenue Impact, using 2%, 3%, and 5% lifts.