12.14. Parameter Example: Projection & Custom Calculators
The Magic of Custom Calculators
Sometimes, the simplest tools can be the most effective. This lesson covers the power of custom calculators and how they can transform your data analysis. With Looker Studio, you can create projection and forecasting tools that allow users to input their own values and see the resulting calculations, all without writing a single line of code.
In this example, we're connecting to a live data source from an API. Looker Studio can connect to a vast range of tools, making it incredibly versatile.
- Understand the importance and utility of custom calculators in Looker Studio.
- Learn how to create projection and forecasting tools with user input.
- Explore various use cases for custom calculators, including internal analysis, client-facing conversations, and lead magnets.
Main Concepts and Topics
- Custom calculators: Powerful tools in Looker Studio that enable users to create interactive, dynamic experiences.
- Projections and forecasting: Custom calculators can be used to project potential outcomes based on user input, helping inform strategic decisions.
- Use cases: Custom calculators can be used internally, shared with clients, or offered as lead magnets to attract prospective clients.
Strategy Projection: A Conversation Starter
Custom calculators can be used to facilitate discussions with clients, marketing managers, or stakeholders. They can help you answer "what if" questions and explore the potential impacts of different strategies. For instance, you can examine how increasing website sessions, conversion rates, or average order value might affect overall profits.
These conversations can help identify the best allocation of resources, whether it's focusing on conversion rate optimization, bundling strategies, increasing traffic, or a combination of these approaches.
Let's imagine a scenario where a business has a net profit of $88,000 last month. By using custom calculators, you can explore different strategies and their potential impacts on profits:
- What if the business adds 10,000 more user sessions?
- What if the business invests in increasing the eCommerce conversion rate by 20%?
- What if the business tries bundling products to increase average order value by 20%?
- What if the business reduces costs by buying in bulk, increasing the profit margin by 10%?
By adjusting these variables, the business can forecast potential profits and make informed decisions about where to focus their resources.
Multiple Uses for Custom Calculators
Custom calculators can be used in various ways, depending on your goals and target audience:
- Internal: Use them to analyze data and make strategic decisions within your organization.
- Client-facing: Share projections with clients to help them understand the potential value of your services.
- Lead magnet: Offer custom calculators as a valuable resource for prospective clients, encouraging them to engage with your brand.
As you can see, custom calculators are a powerful tool in Looker Studio. By incorporating them into your data analysis, you can create interactive, dynamic experiences that help drive better decision-making.