Mode (Most Frequently Occurring Value)

Mode (Most Frequently Occurring Value)

1. What is Mode (Most Frequently Occurring Value)?

Mode identifies the most frequently occurring value within a dataset. In AngularView, Mode can operate on specific financial metrics such as:

  • Order Subtotal: The total amount of items in an order before shipping, taxes, or discounts.
  • Current Total Price: The total amount paid for an order, including all taxes and discounts.

This flexibility allows merchants to uncover trends in their business, such as the most common order sizes or price points.


2. Value to Merchants

  • Uncover Dominant Trends:
    Mode provides merchants with insights into the most common values, such as frequently purchased order sizes or price points, helping identify dominant patterns in customer behavior.
  • Refine Pricing Strategies:
    Understanding the most common price points allows merchants to optimize pricing for maximum appeal and revenue.
  • Optimize Marketing and Inventory:
    By knowing what’s most popular, merchants can focus marketing efforts and stock levels on high-demand products or price ranges, reducing waste and improving sales performance.

3. Why This Matters to Your Business

AngularView allows merchants to analyze Mode across multiple dimensions, such as time periods, customer demographics, and geographic locations. By specifying whether to calculate Mode for Order Subtotal or Current Total Price, merchants gain tailored insights to drive strategic decisions.

For instance:

  • Mode for Order Subtotal: Identify the most frequent subtotal amount to design promotions encouraging customers to meet or exceed this value.
  • Mode for Current Total Price: Pinpoint the most frequent order total, helping refine upselling strategies to nudge orders closer to higher-value totals.

When combined with other measures, Mode offers deeper insights:

  • Mode + AOV: Discover whether the most frequent subtotal aligns with average order values, optimizing cross-selling and bundling strategies.
  • Mode + RFM Segmentation: Highlight trends within loyal or high-value customer groups, such as common price points or order totals.
  • Mode + Refund Rates: Determine if frequent price points or order totals are linked to higher refund rates, enabling merchants to address potential issues.

4. How Mode is Calculated

AngularView calculates Mode by:

  1. Grouping Data by Selected Metric:
    • Data is grouped based on the chosen metric: Order Subtotal or Current Total Price.
  2. Counting Occurrences:
    • The frequency of each value is calculated.
  3. Identifying the Most Frequent Value:
    • The value with the highest frequency is selected as the Mode.
  4. Dimensional Analysis:
    • Mode is recalculated for selected dimensions (e.g., product types, time periods) to provide granular insights.

Mode=Value (e.g., Subtotal or Total Price) with the Highest Frequency of Occurrence


5. Practical Example of Mode in Action

A merchant analyzing Current Total Price discovers that $50 is the most common order total. By combining this insight with seasonal data, they create targeted promotions that encourage customers to reach or exceed $50, boosting both revenue and customer engagement.

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