Shopify Inc.

: Balanced Scorecard and Key Performance Indicators

1. Document Overview
This document provides an analysis of Shopify's business strategy
aligned with key performance indicators (KPIs) and a balanced
scorecard approach. The report includes Shopify’s strategy map, a
balanced scorecard across four perspectives, and an analysis of the
data sources and responsible departments for the scorecard
indicators.

2. Strategic Overview
Shopify’s strategy is centered on becoming the leading global
platform that enables businesses to build and manage online stores
efficiently. The company strives to offer a seamless, user-centric
experience that empowers entrepreneurs, startups, and established
businesses to succeed in e-commerce. Shopify emphasizes
continuous innovation and customer-centricity to enhance business
growth and global reach.
2.1 Company Mission
Mission Statement:
"To make commerce better for everyone."
Shopify’s mission focuses on providing tools that make it easier for
businesses of all sizes to succeed in the digital marketplace,
empowering entrepreneurs to manage every aspect of their business
from a single platform.
2.2 Company Vision
Vision Statement:
"To be the world’s leading e-commerce platform for businesses of all
sizes."
Shopify envisions itself as the primary platform that enables
businesses to thrive by providing innovative, reliable, and accessible
tools for every stage of business growth.
2.3 Core Values
Shopify’s core values include "Innovation, Ownership, Transparency,
Impact, and Empowerment." These values reflect the company’s
dedication to building a platform that meets the dynamic needs of
the e-commerce landscape and empowers its customers to succeed.
 Innovation – Committed to creating solutions that simplify
commerce.
 Ownership – Every employee takes ownership of their work to
ensure the company’s success.
 Transparency – Open communication fosters trust with
customers, partners, and teams.
 Impact – Focused on making meaningful improvements to the
way businesses operate.
 Empowerment – Equipping businesses with tools that foster
independence and success.
2.4 Business Strategy
Shopify’s business strategy is to be a comprehensive, cloud-based,
multi-channel commerce platform. The company leverages its
scalable software-as-a-service (SaaS) model to serve businesses
globally, continuously innovating its platform to support emerging e-
commerce trends and consumer demands. By providing a
customizable platform, Shopify enhances businesses’ ability to reach
customers through online, mobile, in-person, and social commerce
channels.
Shopify’s core business goals include:
1. Expanding global market reach by acquiring new customers and
increasing market share.
2. Focusing on retention and customer satisfaction by enhancing
platform capabilities.
3. Driving innovation in e-commerce technology to maintain a
competitive edge.

3. Strategy Map
The following is Shopify's strategy map, which identifies its strategic
objectives and illustrates how they align across four balanced
scorecard perspectives: Financial, Customer, Internal Business
Processes, and Learning & Growth.
Internal
Strategic Learning &
Financial Customer Business
Goals Growth
Processes
Increase Enhance Increase
Revenue
Objectives Customer Platform Employee
Growth
Retention Innovation Capability
Reduce Improve Foster a
Improve
Operating Customer Culture of
Service Quality
Costs Satisfaction Ownership
Increase Optimize Improve
Increase
Customer Product System
Market Share
Acquisition Development Capabilities
Key Focus Subscription Customer- Platform Continuous
 Internal
Strategic Learning &
Financial Customer Business
Goals Growth
Processes
Revenue Centric Learning
Areas Efficiency
Growth Innovation Programs

4. Balanced Scorecard
The table below outlines Shopify’s balanced scorecard, listing
objectives, specific performance measures, goals, and indicators for
each perspective.
Perspectiv
Objectives Measures Goals Indicators
e
Annual
Subscription Increase
Revenue revenue
Financial revenue growth subscription
Growth growth rate
(%) revenue
(%)
Reduce Reduction in
Operating cost Decrease
Operating operational
ratio (%) costs by 5%
Costs cost (%)
Improve
Increase E-commerce
Global market market
Market market
share (%) share across
Share share (%)
regions
Increase Customer
Decrease
Customer Customer Churn rate (%) retention
churn rate
Retention rate (%)
Improve Customer Achieve Net
Customer satisfaction >90% promoter
Satisfaction survey score satisfaction
Perspectiv
Objectives Measures Goals Indicators
e
rating score (NPS)
Increase
Increase New customer new Customer
Customer acquisition rate customers acquisition
Acquisition (%) by 15% rate (%)
annually
Number of Release four
Internal Enhance Quarterly
platform major
Business Platform release
upgrades/release upgrades
Processes Innovation updates
s per year
Resolve 80% Customer
Improve Support request
of requests support
Service resolution time
within 24 response
Quality (hours)
hours time
Optimize Product
Reduce Time from
Product development
cycle time developmen
Developmen cycle time
by 10% t to release
t (weeks)
Achieve
Increase Employee 90% Employee
Learning &
Employee satisfaction and employee satisfaction
Growth
Capability retention rate (%) retention score
rate
Foster a Number of Complete Employee
Culture of completed cross- 12 engagement
Ownership functional collaborativ survey
projects e projects
Perspectiv
Objectives Measures Goals Indicators
e
annually
System uptime Achieve System
Improve
and data 99.9% uptime and
System
integration rates system availability
Capabilities
(%) uptime (%)

5. Data Analysis
The following table identifies the departments responsible for
collecting data on Shopify's key performance indicators, along with
the data sources.
Data
Perspectiv
Objectives Measure Department Source
e
Elements
Monthly
Subscription
Revenue and annual
Financial revenue growth Finance
Growth revenue
(%)
reports
Cost
Reduce reports,
Operating cost
Operating Finance operationa
ratio (%)
Costs l efficiency
stats
Market
Increase
Global market Marketing, analysis,
Market
share (%) Sales competitor
Share
data
Customer Increase Churn rate (%) Customer Customer
 Data
Perspectiv
Objectives Measure Department Source
e
Elements
database,
Customer Success, churn
Retention Analytics analysis
reports
Survey
Improve Customer
Customer responses,
Customer satisfaction
Success NPS
Satisfaction survey score
feedback
CRM,
Increase New customer
Sales, acquisition
Customer acquisition rate
Marketing channel
Acquisition (%)
reports
Number of Release
Internal Enhance Product
platform notes,
Business Platform Development
upgrades/release product
Processes Innovation , IT
s roadmap
Ticketing
Improve Support request system,
Customer
Service resolution time resolution
Support
Quality (hours) time
metrics
Project
Optimize Product
timelines,
Product development Product
sprint
Developmen cycle time Development
completion
t (weeks)
rates
 Data
Perspectiv
Objectives Measure Department Source
e
Elements
Employee
Increase Employee
Learning & Human surveys,
Employee satisfaction and
Growth Resources retention
Capability retention rate (%)
reports
Number of Project
Foster a
completed cross- Operations, completion
Culture of
functional HR reports, HR
Ownership
projects metrics
System
System uptime
Improve uptime
and data IT, Data
System logs,
integration rates Management
Capabilities integration
(%)
statistics

6. References
1. Shopify Inc. (2023). Annual Report 2023. Shopify Investors.
2. Performance Magazine. (2023). Balanced Scorecard in E-
commerce: Shopify’s Strategic Alignment. Performance
Magazine.
3. Cuofano, G. (2023). Shopify Mission, Vision & Strategy in Brief.
FourWeekMBA. FourWeekMBA.