If you want to work in a good company as a Data Analyst, then you must understand business numbers.
These 5 numbers are used in almost every company β in sales, marketing, reporting, and decision-making.
1. Revenue β
This is the total money the company earns.
If 1,000 people buy a βΉ99 product β Revenue = βΉ99,000
2. Profit β
This is whatβs left after removing expenses.
Profit = Revenue β (ads + salaries + rent + tools)
3. CAC (Customer Acquisition Cost) β
How much money the company spends to get 1 customer.
If ad cost is βΉ10,000 and you got 100 customers β CAC = βΉ100
4. LTV (Lifetime Value) β
How much total money 1 customer gives in a lifetime.
If one customer buys 3 products worth βΉ999 β LTV = βΉ2,997
5. Conversion Rate β
How many people buy out of total visitors.
1,000 people visit your website, 50 buy β Conversion Rate = 5%
Why These Numbers Are Important:
- These 5 numbers help companies take better decisions.
- Big companies like TCS, Infosys, Flipkart, Amazon use these daily.
- You must know how to calculate and understand these to become a smart analyst.
Note: These business numbers are basic data points. Big companies use thousands
of data points to make more profit, grow fast, and spend less.