How is Incremental Revenue calculated in the Orita Dashboard?
In order to calculate Incremental Revenue from using the Orita Grow segment in Klaviyo, we use a holdout group and perform a statistical analysis.
Every week when we update the Grow segment, we randomly pull 10% of those high-propensity-to-buy profiles off of the segment so we can monitor what your business as usual looks like, specifically in regards to:
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How many of these profiles were you going to email anyway?
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How many of these profiles purchased independent of receiving an email?
Once we understand how the holdout group performed, we apply those adjustments to the broader segment performance. This is the most statistically sound way of measuring what Orita's incremental impact has been to your business by finding profiles that weren't captured in your business as usual segmentation & needed an email in order to convert.
The goal here is to maximize opportunity within your existing list.