Profitability Score

Updated on

Profitability score or simply "profitability" of an online store is a measure of store's ability to make profit. The score ranges from 0 to 100, with higher scores signifying higher ability of making profit.

What is profitability score?

The profitability score tells us about an online store's ability to make profits. This score is given by Konigle and ranges between 0 and 100. The score is computed using an AI model using various factors - ability to bring visitors to the store without spending much ad money, ability to convert visitors into buyers just to name a few.

How the score is computed?

Konigle uses various signals of a store to train a machine learning algorithm which will give out the score. The key factors considered for scoring a store are - 

  1. Ability of the store to bring visitors to the storefront without spending a lot of marketing money
  2. Ability of the store to convert the visitors into buyers
  3. Store's ability to convert the buyers into a loyal customers and improve Customer Lifetime Value