# Net Sales Per Customer

How much Net Revenue are you generating?

Net Sales per Customer = (Gross Sales by cohort - Refunds by cohort - Discounts by cohort) / Number of Customers

Net Sales is a metric that tells businesses what their total sales are minus returns, allowances, and discounts. For example, if your store has gross sales of \$150,000 for a given month minus \$3,500 in discounts, \$1,200 in allowances and \$1,500 in returns, your net sales for that month are \$143,800. Tracking your net sales is an important practice because it represents the bottom line of how you business is doing.

## 📘Net Sales Per Customer (cumulative) vs Net Sales Per Customer (non-cumulative)

• For Net Sales Per Customer (cumulative), the values for each month are cumulative and represent the average total amount that a customer has spent by their nth month since placing their first order.

• For Net Sales Per Customer (non-cumulative), the values for each month are non-cumulative and represent the average monthly amount that a customer spends during their nth month since placing their first order.