Profit & Loss

Objective

How profitable is your business? Drill into the details of your revenue and expenses to make better business decisions. Monitor, analyze and act on revenue, expense, and profit numbers specific to any of the dashboard filters such as product, campaign, vertical, channel, country, etc. 

The Profit and Loss (P&L) dashboard provides a financial summary of the revenues and expenses incurred during a specific period of time. This dashboard brings together all expense items and profile assumptions input into LimeLight and associates them with the relevant revenues. 

How to Enter Expenses?

Step #1 - Create an Expense Assumption profile. Go to Offers & Campaigns | Expenses to enter the "Expense Assumption Profiles" page. Select Actions | Add. Enter the name of the profile and click Save.

 

Expense Assumption Definition
Where to Add/Update Assumption
Postage Postage cost to ship the product to a customer. Expense Assumption Profiles
Fulfillment Cost to pick, pack and ship product. Expense Assumption Profiles
Customer Service Cost to support customer service activities. Expense Assumption Profiles
CPA Average cost of customer acquisition. Expense Assumption Profiles
Packaging Cost of box and package filling to ship the product. Expense Assumption Profiles
System Costs related to systems that support the business. Expense Assumption Profiles
Operating Overhead cost of running the business. If you want your P&L to be as close to reality as possible, include all of the expenses outside of the expenses above in this expense assumption. Expense Assumption Profiles
Monthly Fee Credit card processors charge this fee on a monthly basis. It remains the same regardless of the number of transactions you process and helps cover the cost of your statement and any customer support you may have. Gateway Costs
Batch Fee A fee that is charged when you settle your daily transactions (also known as the batch) with your credit card processor. Gateway Costs
Transaction Fee A fee that is charged to settle your daily transactions (also known as the batch) with your credit card processor. Gateway Costs
Cost of Goods Sold (COGS) An accumulated total of all costs used to create a product or service, which has been sold. Product Costs

In order for the P&L to function properly, there are three areas of that you will enter expense assumptions into, including:

  1. Expense Assumption Profiles. Go to Offers & Campaigns | Expenses. From this section of the platform, you will add the desired number of Expense Assumption Profiles to support your Profit & Loss statement.
  2. Gateway Costs. Go to Payment | Gateway | Edit the appropriate gateways | Update the appropriate expenses.
  3. Product Costs. Go to Offers & Campaigns | Products | Edit | Edit the Cost Price.

 

Potential Actions

  1. Identify components of marketing efforts that can be optimized to increase profitability.

  • Data presented in this dashboard is based on "Acquisition Date" unless otherwise noted. Acquisition Date is the date that the original order was placed and allows Analytics to present data in an appropriately connected way.  Specifically, Acquisition Date associates Re-bill and Recurring transactions (Cycles 1…X) to the Initial transaction that initiated the order.  When calculating many measures, disassociating the recurring transaction types from the date of origination (the Initial transaction) causes arithmetic inconsistencies and brings incorrect and misleading results - and ultimately incorrect business decisions.

    As an example: measures that incorporate time-phasing and transaction type correlation into the calculation: think Re-Bill rate or Chargeback Rate; they both associate a transaction event to other components of the overall order within a timeframe.

    That being said, there are instances where you may want to simply see the count, or value, or count by transaction type, of transactions within a period.  When this type of analysis is performed it will be noted as such.

  • All orders marked "test" within the platform are automatically removed from the Analytics data.
  • Please reference the Lime Light Order Cycle Nomenclature visual below to understand the way that Lime Light references the phases of each order type. 

 


Video Length: 10:00

 

You may find the following Help Center articles relevant to Analytics helpful.

  1. Analytics Overview
  2. Glossary of Measures
  3. Glossary of Terms
  4. How to use Filters
  5. Analytics Vs. Reports - Data Calculation Methodology