KPI Glossary

# KPI Glossary Complete reference for all metrics and Key Performance Indicators (KPIs) in RecSystems Reports Dashboard. Use this guide to understand exactly what each number means and how it's calculated. --- ## 💰 Financial Metrics ### Gross Revenue **Definition**: Total amount charged to customers before any deductions. **Calculation**: Sum of all paid order totals in the selected period. **Includes**: Rental fees, add-ons, taxes, damage deposits, late fees. **Use it to**: Track overall sales volume and growth trends. --- ### Net Revenue **Definition**: Revenue you actually keep after refunds and processing costs. **Calculation**: Gross Revenue - Refunds - Processing Fees **Use it to**: Understand your true income and profitability. --- ### Refunds **Definition**: Total amount returned to customers. **Calculation**: Sum of all refund transactions in the selected period. **Includes**: Full refunds, partial refunds, chargebacks. --- ### Refund Rate **Definition**: Percentage of gross revenue that was refunded. **Calculation**: (Refunds ÷ Gross Revenue) × 100 **Benchmarks**: | Rate | Status | Meaning | |------|--------|---------| | < 3% | ✓ Excellent | Very low refund activity | | 3-8% | ⚠️ Monitor | Industry average range | | > 8% | 🔴 High | Investigate causes | --- ### Average Order Value (AOV) **Definition**: Average revenue generated per order. **Calculation**: Gross Revenue ÷ Number of Paid Orders **Use it to**: Measure upselling effectiveness and customer spending. **To improve**: Promote add-ons, offer package deals, encourage longer rentals. --- ### Processing Fees **Definition**: Credit card processing costs (Stripe fees). **Calculation**: Sum of Stripe fees for all transactions. **Typical rate**: ~2.9% + $0.30 per transaction. --- ### Outstanding Balance **Definition**: Total amount owed by customers that hasn't been collected. **Includes**: Unpaid invoices, pending payments, AR balances. **Use it to**: Track accounts receivable and cash flow health. --- ### Discounts **Definition**: Total value of discounts applied to orders. **Includes**: Promo codes, early-bird discounts, multi-day discounts, manual discounts. **Use it to**: Track promotional effectiveness and discount spend. --- ### Taxes **Definition**: Total sales tax collected from customers. **Use it to**: Track tax liability and ensure compliance. --- ## 🚤 Fleet Performance Metrics ### RevPAUH (Revenue Per Available Unit Hour) ⭐ **Definition**: Revenue generated per hour of fleet availability. The **industry gold standard** for rental efficiency. **Calculation**: Total Revenue ÷ Total Available Hours (all units) **Example**: $32.40/hr means your fleet earns $32.40 for every hour it could be rented. **Industry Benchmarks**: | Category | Low | Average | High | |----------|-----|---------|------| | Marine (boats, pontoons) | $15/hr | $28/hr | $45/hr | | Powersports (UTVs, snowmobiles) | $25/hr | $45/hr | $70/hr | | Equipment/Other | $5/hr | $15/hr | $25/hr | **Why it matters**: Measures how efficiently you're monetizing your assets. --- ### RPU/D (Revenue Per Unit Per Day) **Definition**: Average revenue each unit generates per day. **Calculation**: Unit's Revenue ÷ Days in Period **Use it to**: Compare unit productivity on a daily basis. --- ### Utilization (Fleet Efficiency Score) **Definition**: What percentage of your potential revenue you're actually capturing. **Calculation**: (Actual Revenue ÷ Potential Revenue) × 100 **In plain terms**: If you could theoretically earn $10,000 and you actually earned $7,500, your utilization is 75%. **Benchmarks**: | Rate | Status | What it means | |------|--------|---------------| | > 80% | ✓ Excellent | Fleet is in high demand — consider adding capacity | | 60-80% | Good | Healthy business with room for growth | | 40-60% | ⚠️ Monitor | Significant opportunity — review pricing or promotion | | < 40% | 🔴 Low | Investigate: pricing too high? Low awareness? | **Factors that affect utilization**: - Seasonal demand (expect lower in off-season) - Pricing competitiveness - Marketing and visibility - Weather conditions - Fleet size vs. local demand **Pro tip**: Compare utilization by unit to find your star performers and underperformers. --- ### Vacancy **Definition**: Percentage of available time that units are NOT rented. **Calculation**: 100% - Utilization **Use it to**: Identify lost revenue opportunities. --- ### Turnover Rate **Definition**: How many times a unit is rented per week. **Calculation**: Number of Rentals ÷ Weeks in Period **Example**: 3.2/week = approximately 3 rentals per week average. **Use it to**: Measure unit activity level. --- ### Idle Time **Definition**: Hours a unit was available but not rented. **Calculation**: Available Hours - Booked Hours **Idle %**: (Idle Hours ÷ Available Hours) × 100 **Use it to**: Identify underperforming units. --- ### Unit Health Score **Definition**: Composite grade (A-F) measuring overall unit performance. **Components**: - Utilization (40% weight) - RevPAUH vs fleet average (30% weight) - Turnover rate (30% weight) **Grades**: | Grade | Score | Meaning | |-------|-------|---------| | A | 90-100 | Star performer | | B | 80-89 | Good performer | | C | 70-79 | Average, room to improve | | D | 60-69 | Needs attention | | F | < 60 | Critical — investigate | **Where to find it**: Each unit's detail page has a **Performance** button that shows a detailed breakdown including the health score ring, components, and recommendations. --- ### Fleet Rank **Definition**: Where a unit ranks among all units in the same fleet based on revenue. **How it's shown**: | Rank | Display | Meaning | |------|---------|---------| | #1 | 🥇 Gold medal | Top performer in fleet | | #2 | 🥈 Silver medal | Second best | | #3 | 🥉 Bronze medal | Third best | | #4+ | Gray badge | Below top 3 | **Use it to**: Quickly identify your best and worst performing equipment. --- ### Potential Revenue **Definition**: Theoretical maximum revenue if all inventory were fully booked at base prices across the selected time period. **What it represents**: This is your **revenue ceiling** — the maximum you could earn if every available rental slot was booked. **How it's calculated**: For each day in your selected period: 1. We look at every unit and timeslot combination 2. We check which timeslots are valid (seasonal availability, day of week) 3. We multiply the base price × maximum available units 4. We sum it all together **Two calculation modes**: | Mode | What it measures | Best for | |------|------------------|----------| | **Conservative** (default) | Maximum without overlap — assumes each unit can only rent once per day | Planning, forecasting, KPIs | | **Upper** | Absolute maximum — includes all possible timeslots | Understanding total capacity | **Example**: - 3 boats × $200/day × 30 days = $18,000 potential - If you actually earned $14,400, your utilization is 80% **Important notes**: - Uses **base prices** (promotional pricing not included) - Accounts for **seasonal timeslots** (only counts valid days) - Does **not** include add-ons, fees, or taxes **Use it to**: - Set realistic revenue goals - Identify unused capacity - Measure fleet utilization effectiveness --- ## 📅 Time Intelligence Metrics ### Revenue by Day of Week **Definition**: Breakdown of revenue by day (Sunday through Saturday). **Use it to**: - Identify peak days (usually weekends) - Set dynamic pricing by day - Plan staffing levels --- ### Booking Velocity **Definition**: Rate of new bookings over recent period (7-day rolling count). **Calculation**: Count of new bookings in last 7 days. **Momentum indicators**: | Status | Meaning | Change | |--------|---------|--------| | 🔥 Strong | Accelerating | > +15% vs prior week | | ✅ Steady | Normal pace | ±15% vs prior week | | ⚠️ Slowing | Decelerating | > -15% vs prior week | --- ### Booking Lead Time **Definition**: How far in advance customers make their bookings. **Buckets**: - **Same Day**: Booked for today - **1-2 Days**: Short notice - **3-7 Days**: Week out - **7+ Days**: Planners **Use it to**: Set early-bird and last-minute pricing strategies. --- ### Average Rental Duration **Definition**: Typical length of rentals. **Categories**: - **Hourly**: < 1 day - **Daily**: 1 day - **Multi-Day**: 2+ days **Use it to**: Understand customer preferences and plan inventory. --- ## 👥 Customer Intelligence Metrics ### Repeat Customer Rate **Definition**: Percentage of customers who have booked more than once. **Calculation**: (Customers with 2+ orders ÷ Total Customers) × 100 **Benchmark**: 20-30% is healthy for rental businesses. **Use it to**: Measure customer loyalty and retention. --- ### Customer Lifetime Value (CLV) **Definition**: Estimated total revenue from a customer over their lifetime. **Calculation**: Average Order Value × Average Orders Per Customer **Example**: $175 AOV × 2.2 orders = $385 CLV **Use it to**: - Set customer acquisition budgets - Justify retention programs - Identify high-value segments --- ### New vs Returning Revenue **Definition**: Revenue split between first-time and repeat customers. **Use it to**: Understand revenue stability (returning = more predictable). --- ### Customer Segments **Definition**: Distribution of customers by order frequency. | Segment | Definition | |---------|------------| | 🆕 First-time | 1 order | | 🥈 Returning | 2-3 orders | | 🥇 Loyal | 4+ orders | --- ## ⚡ Operational Efficiency Metrics ### Orders (Carts Paid) **Definition**: Total number of paid orders (carts) in the period. **Note**: One order can contain multiple units/bookings. --- ### Units Reserved **Definition**: Total individual unit reservations made. **Note**: One order with 3 boats = 3 units reserved. --- ### Units Completed **Definition**: Reservations that reached "Completed" status. **Use it to**: Track fulfilled rentals. --- ### Cancellation Rate **Definition**: Percentage of reserved units that were cancelled. **Calculation**: (Cancelled Units ÷ Total Reserved Units) × 100 **Benchmarks**: | Rate | Status | |------|--------| | < 5% | ✓ Excellent | | 5-10% | Normal | | > 10% | ⚠️ High | --- ### No-Show Rate **Definition**: Percentage of confirmed bookings where customers didn't arrive. **Calculation**: (No-Show Bookings ÷ Expected Bookings) × 100 **Benchmarks**: | Rate | Status | Action | |------|--------|--------| | < 3% | ✓ Excellent | Great policies! | | 3-5% | Industry average | Consider deposits | | > 5% | 🔴 High | Implement confirmations | **Lost Revenue**: No-shows × Average Order Value = estimated lost revenue. --- ### Days Sales Outstanding (DSO) **Definition**: Average number of days to collect payment. **Calculation**: Outstanding AR ÷ (Total Revenue ÷ Days in Period) **Benchmarks**: | Days | Status | |------|--------| | < 15 | ✓ Excellent | | 15-25 | Good | | > 25 | ⚠️ Review collections | --- ### Cart Conversion Rate **Definition**: Percentage of started carts that become paid orders. **Calculation**: (Paid Carts ÷ Total Carts Created) × 100 **Benchmark**: 65-75% is typical. **Inverse**: **Cart Abandonment** = 100% - Conversion Rate --- ### Units Per Order **Definition**: Average number of units in each order. **Calculation**: Total Units Reserved ÷ Total Orders **Use it to**: Track group booking trends. --- ### Multi-Unit Cart % **Definition**: Percentage of orders containing 2+ units. **Use it to**: Measure success of group/family promotions. --- ### Add-On Revenue **Definition**: Revenue from additional items (life jackets, coolers, etc.). **Use it to**: Track upselling success. --- ### Add-On Attach Rate **Definition**: Percentage of orders that include at least one add-on. **Calculation**: (Orders with Add-ons ÷ Total Orders) × 100 **Benchmark**: 30%+ indicates effective add-on strategy. --- ### Checkout → Paid Conversion **Definition**: Orders that reached checkout and completed payment. **Use it to**: Identify payment friction (if low, checkout may be difficult). --- ## 📊 Trend Indicators ### Trend Arrows | Arrow | Color | Meaning | Change | |-------|-------|---------|--------| | ↑ | Green | Improving | > +5% | | ↓ | Red | Declining | > -5% | | → | Gray | Stable | ±5% | **Note**: Some metrics are "inverted" — for refunds and cancellations, ↓ is good (green). --- ### Comparison Modes **vs. Same Period Last Year (YoY)** - Best for: Seasonal comparisons - Example: Nov 2024 vs Nov 2023 **vs. Previous Period (PoP)** - Best for: Recent trends - Example: Nov 1-30 vs Oct 1-30 --- ## 🔢 Formula Quick Reference | Metric | Formula | |--------|---------| | Net Revenue | Gross - Refunds - Processing | | AOV | Gross ÷ Orders | | Refund Rate | Refunds ÷ Gross × 100 | | RevPAUH | Revenue ÷ Available Hours | | Utilization | Booked Hours ÷ Available × 100 | | Vacancy | 100 - Utilization | | Turnover | Rentals ÷ Weeks | | CLV | AOV × Avg Orders/Customer | | DSO | AR ÷ (Revenue ÷ Days) | | Conversion | Paid ÷ Started × 100 | --- ## 📱 Dashboard Locations | Metric | KPIs Page | Full Reports | |--------|-----------|--------------| | Gross Revenue | ✓ Hero | ✓ | | Net Revenue | ✓ | ✓ | | Refund Rate | ✓ Card | ✓ | | AOV | ✓ Card | ✓ | | RevPAUH | ✓ Hero Card | Per-Unit Table | | Utilization | ✓ Hero | ✓ | | Booking Velocity | ✓ Sparkline | — | | Day of Week | ✓ Chart | ✓ Chart | | Customer CLV | ✓ Card | ✓ | | No-Show Rate | ✓ Card | ✓ | | DSO | ✓ Card | AR Aging | | Cart Conversion | ✓ Card | ✓ | --- *Need help understanding a metric? 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