A hidden metric: StDev

Here's a useful metric that isn't commonly seen in many reports, even though it can be very insightful.

Let's illustrate it with an example. Consider this report showing transaction conversion rates for two months:

At first glance, these rates appear nearly identical, don't they?

Let's delve a bit deeper:

Spot any differences? The distinction lies in the deviation rates for each month. The metric that highlights such patterns and is part of descriptive statistics is called:

Let's re-examine the report, this time with the added standard deviation:

We use standard deviation as a health indicator when analyze large sets of data. A high standard deviation suggests that we might not want to place full trust in a metric because its components vary significantly. On the other hand, a low standard deviation indicates that the metric is consistent and can be deemed reliable.

Formula for Standard Deviation for a Sample:

There's no one-size-fits-all answer. It varies based on the specific metric in question. Through practice and observation over the years, we’ve identified our own benchmarks. However, our approach is tailored to metrics specific to efood and might not apply universally.

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