BALANCE SCORECARD OF NYKAA IN RETAILING
KPIs Description Target Actual
Gross Revenue (GR) GR = ∑ (unit_price × order_qty) - ₹ 63,56,439
Financial Perspective Net Revenue (NR) after Returns NR = GR − ∑ (unit_price × return_qty) > 90% -
(Profitability & Revenue Return Rate (RR) % RR = (∑return_qty/∑order_qty) × 100 < 10-15% -
Growth) Average Order Value (AOV) AOV = GR/Total Orders 5-10% -
Customer Lifetime Value (CLV) CLV = AOV × Purchase Frequency × Avg. Customer Lifespan 20-25% over 2 years -
Order Fulfillment Time (OFT) OFT = Average(Order Delivered Date - Order Placed Date) < 3-5 days 8 days
Return Processing Efficiency (RPE) RPE = (Successfully Processed Returns/Total Returns) × 100 > 95% 89.42
Brand Preference Index (BPI) BPI = (Total Returned Orders of a Brand/Total Returned Orders) × 100 < 5-7% 52.334103
Return Reason Distribution Count of unique return reason each 34
Defect Return Rate (DRR) DRR = (Returns due to "Didn’t like quality"/Total Returns) × 100 < 5% 21.76%
Internal Process Perspective Fit & Sizing Issue Rate (FIR) FIR = (Returns due to size mismatch/Total Returns) × 100 < 8-10% 33.62%
(Efficiency & Optimization) Wrong Product Return Rate (WPRR) WPRR = (Returns due to Wrong Product delivered/Total Returns) × 100 < 1% 10.82%
Customer Churn Rate (CCR) CCR = (Customers who stopped ordering/Total Active Customers) × 100 < 5-7% -
Nykaa_Beauty 13.4%,
Platform Performance Orders by platform
Nykaa_Fashion 86.6%
MPRR = (Returns due to "Product marked delivered but customer didn’t
Missing Product Return Rate (MPRR) <1% 3.53%
recieve"/Total Returns) × 100
Returns due to product not delivered to customer Product marked delivered but customer did not receive it 0 352
Customer Perspective Delivered Defective Product No. of Defective products delivered to customers 0 2168
(Experience & Retention) Fit & Sizing Issue Fit & size was inappropriate according to customer. 0 3348
Wrong Product Delivered No. of Wrong products delivered to the customers. 0 1078
AR/VR based Shopping experience adoption Virtual customer try-ons and product visualization. 30% of online shoppers engage with AR/VR features within 12 months. -
Secure & Efficient payment system adoption Integration of digital wallets like (buy now, pay later). 99.9% transaction success rate with ≤0.1% chargeback rate. -
Utilizing AI to provide personalized prod.uct recommendations based on ≥25% CTR (click through rate) on AI-generated product recommendations, with
AI-Powered Personalization Effectiveness -
customer queries an uplift of 10-15% in Average Order Value (AOV).
Learning & Growth Perspective Size chart optimisation accuracy Improvement of size chart. Reduce size related returns by 20%. -
(Product & Process Adapt software driven operations
% of eCommerce decisions optimized via real-time analytics and automation ≥80% of inventory and order management automated using ERP/WMS, leading
-
Improvements) for efficiency and revenue growth. to a 30% reduction in stockouts/overstocks.
Digital Process Automation Adoption Rate (Number of automated process/total number of processes) x 100 at least 50% of manual process to be automated. -
Faster & Secure Transactions Implement PCI DSS-compliant systems to enhance security.
Payement Procedure Fraud Prevention & Risk Management Implement 3D Secure (3DS2.0) authentication to reduce chargebacks.
Refund & Chargeback Optimization Provide real-time tracking of refunds & payments.
