Assuming a 10% increase in the Average Order value and the Average number of Orders for the 10th percentile customer by treating them differently, revenues before and after VRM is shown below.
You could uplift your revenue by (123k)
and EBIDTA by (12m)
| Segment |
Avg. order value |
Avg. orders in a year |
Current revenue annual |
| 10th percentile |
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| Segment |
Avg. order value |
Avg. orders in a year |
Current revenue annual |
| 10th percentile |
|
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|
|
Current |
Future |
% Change |
| Revenues |
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| Gross Margin % |
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| GM |
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| Cost (% Revenue) |
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| Costs |
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| EBIDTA |
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| EBIDTA % of Revenue |
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| Segment |
No. of customers |
Current revenue (mn.) |
Future revenue (mn.) |
Current (%) |
Future (%) |
| Top 20% |
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| Next 30% (21-50) |
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| Rest 50% |
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| Top 10% |
|
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| Rest 90% |
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| Grand Total |
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