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Apprendre Building Metric Trees in Python | Metric Frameworks
Business Analytics and Decision Making with Python

bookBuilding Metric Trees in Python

Metric trees are a powerful way to break down complex business goals into actionable, measurable components. When you are faced with a high-level objective—such as increasing revenue or improving user engagement—a metric tree helps you visualize how this goal can be decomposed into smaller, related metrics. Each branch of the tree represents a relationship: parent metrics are influenced by their children, and understanding these dependencies allows you to identify which areas to focus on for improvement. By systematically mapping out metrics in a hierarchical structure, you make it easier to assign responsibility, track progress, and ensure alignment across teams.

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import pandas as pd # Define the structure of a metric tree for a business goal: Increase Revenue data = { "Metric": [ "Revenue", "Number of Customers", "Average Revenue per Customer", "Number of Website Visitors", "Conversion Rate", "Average Order Value" ], "Parent": [ None, # Revenue is the root "Revenue", # Number of Customers drives Revenue "Revenue", # ARPU drives Revenue "Number of Customers", # Visitors drive Customers "Number of Customers", # Conversion Rate drives Customers "Average Revenue per Customer" # AOV drives ARPU ] } metric_tree_df = pd.DataFrame(data) print(metric_tree_df)
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import matplotlib.pyplot as plt import matplotlib.patches as patches import pandas as pd # Manual coordinates for clean diagram layout node_positions = { "Revenue": (0, 0), "Number of Customers": (-3, -2), "Average Revenue per Customer": (3, -2), "Number of Website Visitors": (-5, -4), "Conversion Rate": (-1, -4), "Average Order Value": (3, -4) } edges = [ ("Revenue", "Number of Customers"), ("Revenue", "Average Revenue per Customer"), ("Number of Customers", "Number of Website Visitors"), ("Number of Customers", "Conversion Rate"), ("Average Revenue per Customer", "Average Order Value"), ] def plot_metric_tree_clean(node_positions, edges): fig, ax = plt.subplots(figsize=(12, 7)) # Draw edges (behind everything) for parent, child in edges: px, py = node_positions[parent] cx, cy = node_positions[child] ax.plot( [px, cx], [py - 0.3, cy + 0.3], color="gray", linewidth=2, zorder=1 ) # Draw nodes (in front) for metric, (x, y) in node_positions.items(): rect = patches.FancyBboxPatch( (x - 1.35, y - 0.125), 2.7, 0.25, boxstyle="round,pad=0.3", linewidth=1.5, edgecolor="#1976D2", facecolor="#1976D2", zorder=3 ) ax.add_patch(rect) ax.text( x, y, metric, ha="center", va="center", color="white", fontsize=11, fontweight="bold", zorder=4 ) ax.axis("off") plt.title("Metric Tree: Revenue Breakdown", fontsize=16) plt.tight_layout() plt.show() plot_metric_tree_clean(node_positions, edges)
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Metric trees are especially valuable for diagnosing business performance issues. When a core metric—such as revenue—falls short of expectations, the tree structure guides you through the hierarchy to pinpoint where the problem might originate. For instance, if revenue is underperforming, you can examine its immediate drivers: is the number of customers declining, or is the average revenue per customer dropping? By following each branch down to more granular metrics, you can quickly isolate which component is responsible for the change. This structured approach not only accelerates root cause analysis but also helps you design targeted interventions, ensuring that your efforts are focused where they will have the greatest impact.

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What is the main purpose of using a metric tree in business analytics?

Select the correct answer

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Comment pouvons-nous l'améliorer ?

Merci pour vos commentaires !

Section 6. Chapitre 2

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bookBuilding Metric Trees in Python

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Metric trees are a powerful way to break down complex business goals into actionable, measurable components. When you are faced with a high-level objective—such as increasing revenue or improving user engagement—a metric tree helps you visualize how this goal can be decomposed into smaller, related metrics. Each branch of the tree represents a relationship: parent metrics are influenced by their children, and understanding these dependencies allows you to identify which areas to focus on for improvement. By systematically mapping out metrics in a hierarchical structure, you make it easier to assign responsibility, track progress, and ensure alignment across teams.

123456789101112131415161718192021222324
import pandas as pd # Define the structure of a metric tree for a business goal: Increase Revenue data = { "Metric": [ "Revenue", "Number of Customers", "Average Revenue per Customer", "Number of Website Visitors", "Conversion Rate", "Average Order Value" ], "Parent": [ None, # Revenue is the root "Revenue", # Number of Customers drives Revenue "Revenue", # ARPU drives Revenue "Number of Customers", # Visitors drive Customers "Number of Customers", # Conversion Rate drives Customers "Average Revenue per Customer" # AOV drives ARPU ] } metric_tree_df = pd.DataFrame(data) print(metric_tree_df)
copy
12345678910111213141516171819202122232425262728293031323334353637383940414243444546474849505152535455565758596061
import matplotlib.pyplot as plt import matplotlib.patches as patches import pandas as pd # Manual coordinates for clean diagram layout node_positions = { "Revenue": (0, 0), "Number of Customers": (-3, -2), "Average Revenue per Customer": (3, -2), "Number of Website Visitors": (-5, -4), "Conversion Rate": (-1, -4), "Average Order Value": (3, -4) } edges = [ ("Revenue", "Number of Customers"), ("Revenue", "Average Revenue per Customer"), ("Number of Customers", "Number of Website Visitors"), ("Number of Customers", "Conversion Rate"), ("Average Revenue per Customer", "Average Order Value"), ] def plot_metric_tree_clean(node_positions, edges): fig, ax = plt.subplots(figsize=(12, 7)) # Draw edges (behind everything) for parent, child in edges: px, py = node_positions[parent] cx, cy = node_positions[child] ax.plot( [px, cx], [py - 0.3, cy + 0.3], color="gray", linewidth=2, zorder=1 ) # Draw nodes (in front) for metric, (x, y) in node_positions.items(): rect = patches.FancyBboxPatch( (x - 1.35, y - 0.125), 2.7, 0.25, boxstyle="round,pad=0.3", linewidth=1.5, edgecolor="#1976D2", facecolor="#1976D2", zorder=3 ) ax.add_patch(rect) ax.text( x, y, metric, ha="center", va="center", color="white", fontsize=11, fontweight="bold", zorder=4 ) ax.axis("off") plt.title("Metric Tree: Revenue Breakdown", fontsize=16) plt.tight_layout() plt.show() plot_metric_tree_clean(node_positions, edges)
copy

Metric trees are especially valuable for diagnosing business performance issues. When a core metric—such as revenue—falls short of expectations, the tree structure guides you through the hierarchy to pinpoint where the problem might originate. For instance, if revenue is underperforming, you can examine its immediate drivers: is the number of customers declining, or is the average revenue per customer dropping? By following each branch down to more granular metrics, you can quickly isolate which component is responsible for the change. This structured approach not only accelerates root cause analysis but also helps you design targeted interventions, ensuring that your efforts are focused where they will have the greatest impact.

question mark

What is the main purpose of using a metric tree in business analytics?

Select the correct answer

Tout était clair ?

Comment pouvons-nous l'améliorer ?

Merci pour vos commentaires !

Section 6. Chapitre 2
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