About revenue
About revenue
Some charts on the dashboards in the Advanced Reports (platform-ca | platform-eu | platform-au) page of the Coveo Administration Console use the revenue metric.
Expand the following sections to learn how the revenue metric is calculated based on the tracking method you use:
Event protocol
The sum of the gross revenue
(from the transaction
property) from every product sold in each purchase events.
SUM (gross revenue)
Coveo UA
The sum of the gross revenue
(from the transaction
property) from every product sold in each purchase events.
SUM (gross revenue)
Net revenue
Net revenue represents the revenue attributed to each product within a purchase event, excluding taxes, shipping costs, and discounts.
It’s calculated by multiplying the product’s base price by the quantity of units sold, as in the following formula:
product net revenue = product base price * quantity
Gross revenue
Gross revenue represents the revenue attributed to each product within a purchase event, scaled to match the total gross transaction amount, which may include taxes, shipping costs, and discounts.
Rather than distributing these extra costs across products directly, gross revenue is calculated using a gross factor. The gross factor is a scaling ratio based on the relationship between gross and net revenue at the transaction level.
The following formula is used to calculate the gross revenue:
Gross revenue = net revenue * gross factor
The gross factor is calculated as follows:
Gross factor = gross transaction amount / net transaction amount
Where:
-
Gross transaction amount: The total amount of the transaction logged by the associated purchase event, including taxes, shipping costs, and discounts.
-
Net transaction amount: The sum of the net revenue of all products sold in the transaction.
Example
A customer makes a purchase containing the following products:
Product | Base price | Quantity | Product net revenue |
---|---|---|---|
A |
$25 |
1 |
$25 |
B |
$10 |
4 |
$40 |
C |
$40 |
3 |
$120 |
The transaction’s total net revenue is $185. The total amount logged by the associated purchase event is $200, which includes $15 in taxes, shipping, or other adjustments.
The gross factor is calculated as follows:
Gross factor: 200 / 185 = 1.081081
When calculating gross revenue, the gross factor is applied to each product’s net revenue:
Product | Net revenue | Gross factor | Gross revenue | Adjustment |
---|---|---|---|---|
A |
$25 |
1.081081 |
$27.03 |
+$2.03 |
B |
$40 |
1.081081 |
$43.24 |
+$3.24 |
C |
$120 |
1.081081 |
$129.73 |
+$9.73 |
This results in a total gross revenue of $200, which matches the transaction total.