At the Snap of Your Fingers – Redefining Retail & More With qCommerce
The start of the Holy Ramadan Month is just around the corner. If you are thinking of taking those adventurous app marketing or app growth decisions in the Middle East and North Africa, there’s no better time than now to get started. As of 2019, about 99% of North Africans were recorded to follow the Islamic faith. The Middle East again boasts of a similar strength making Ramadan the biggest annual festive season in the region.
Shopping and food are on top of people’s minds and brands are going all out to make the most of the festive spirit. That’s the case every year. However, Ramadan 2022 will witness the influence of Quick Commerce or qCommerce on retail and food industries. The market size is projected to reach a mind boggling $ 47 Billion by 2030. And investors are eager to taste a pie of the profits from this fast growing category.
Team MAAS has prepared a quick checklist of key metrics for you, along with a handy infographic to help deliver that perfect investment pitch for the season ahead.
Getting the Basics Right
The first part of the checklist is all about showing your prospect investors that you have the foundation of your business under control.
- Conversions : The percentage of users who perform activities on your app that translates to revenue.
- Churn Rates : This metric shows, as a business owner, you track what users are uninstalling your app and why they may not be your right target audience.
- Average Cart Value : As a qCommerce business owner, this metric helps investors understand the average revenue your users are generating per transaction.
- Organic & Paid Reach : This key metric gives valuable insights into your marketing spends to acquire new users.
While the above items are great to open your presentation, investors require a deeper dive to understand the scalability of your business model and also to judge if your business is heading in the right direction.
- Total Addressable Market : For your business to grow, you need to show investors there’s a demand for the service you are offering. qCommerce is known to increase incidences of purchases in digital businesses by 36%. The infographic below will help you with more information to perfect this point in your pitch deck.
- Gross Merchandise Value : For a qCommerce app, this metric is important to showcase the total value of goods sold on the platform. However, this should not be confused as gross revenue – the percentage of commissions the app receives on purchases made.
- Active Users : A low active user rate indicates problems with the app and the service it offers. The higher the base of active users, the more interesting the business for investors.
- LTV/CAC Ratio : This is singularly the most significant KPI that matters to investors before they say a yes to you. LTV (Lifetime Value of Users) refers to the contributions received from a single active user before the app is uninstalled. CAC (Customer Acquisition Cost) takes into account all marketing and other costs incurred to acquire a single user. A result greater than 1 shows your business is on the right path to flourish and be cash flow positive; a result lesser than 1 indicates problems in the business model that requires attention.
Once you have wowed your investors with a number driven pitch that shows your deep involvement with the nitty gritty of your business, close it with the absolute result – the revenue this year and projected revenue of the next.
Download your copy of the infographic to keep it handy for your presentations or even just for a quick market research reference.
Shri Lakhan Arora contributed to this article.