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What Are Some Of The Most Important Analytical Metrics For Ecommerce You Need To Know |

What Are Some Of The Most Important Analytical Metrics For Ecommerce You Need To Know |

It is important to know the exact information in order to make a well-informed decision when it comes to running an e-commerce business. These days, database decision making has become a critical part of any business and that includes the e-commerce industry. As an eCommerce business owner, you need to spend some time learning more about eCommerce metrics.

Of course, you will probably concentrate on metrics that have the biggest impact on your bottom line. Still, there is still the possibility that you are wasting your time tracking vanity that has almost no impact on your overall business performance. For example, social media likes, page views, and unqualified leads in the sales funnel can all fall into this category.

Having the skills to collect and analyze eCommerce metrics is essential to running a thriving online store. Changes in these necessary metrics can alert you to potential situations that may require you to take immediate action.

For this post, we cover the most relevant eCommerce analytical metrics you need to know. We will go into enough detail about these metrics and tell you why they play such a crucial role in your business.

Determining the eCommerce metrics that matter

Keep in mind that there is very little value in monitoring too many metrics if it does not serve a meaningful purpose with your eCommerce business’ long-term success. It is highly recommended that you take the time to identify the key performance indicators (KPIs) that constantly have the most significant impact on your overall business goals.

If you are unsure of the difference between the two terms, this is what you need to know. Metrics track the progress of any business process, while KPIs are the metrics that tell you how effective you are at achieving a specific goal.

For example, one of the metrics typically tracked by e-commerce sites is the amount of traffic generated from paid searches. However, a KPI would concentrate on the number of qualified leads produced by paid search.

The metrics we plan to share with you throughout this article are those used by some of the most successful e-commerce companies. None of these are newly thought out ideas born from the latest trends.

They are proven strategies that you can apply to your business without any hesitation. Start your metric analysis with these, and then expand further once you have seen the proven results.

E-commerce metrics you must adhere to

If you spend a good amount of money on click-through ads, but the average order value you get back is far below that, there is clearly something wrong with your strategy, or you may have a long-term plan that makes strategic sense.

To ensure that you make a clear decision when it comes to advertising costs and other expenses, you need to understand your average order value (CPR), customer lifetime (CLV) and total customer acquisition (CAC). A good grasp of these numbers will help you improve your business goals and ensure that your marketing is top notch.

Average Order Value (AOV)

As an eCommerce operator, you want your customer to spend as much as possible on your online store. Your average order value is attributed to the average value of each purchase made in your online store.

To calculate this, divide the sum value of all sales by the number of carts.

By keeping track of the average order value, you can set benchmarks and figure out how to get customers to spend more money on each purchase they make. Here are some ways you can propel this metric:

Offer customers products as a package so they can get a small discount for each item as opposed to buying separately. Offer them free shipping on purchases above a certain threshold to force customers to maximize their consumption. Upsell the customer’s free items that enhance the usability of their first purchase.

Customer Lifetime Value (CLV)

Customer Lifetime Value (CLV) calculates the total amount of what you have earned from an average customer over their lifetime. Let us e.g. Say one of your customers has made six transactions, each worth $ 40 over the course of their lives.

CLV would be at $ 240. Remember that you still have to deduct the acquisition cost from this issue, which comes to our next point.

Customer lifespan is critical because it serves as a benchmark for how much you can spend on acquiring customers and the lengths you need to take to retain them. To increase your eCommerce CLV, you can try to improve your average order value and give rise to loyalty among existing customers so that they can convert to repeat customers.

Customer Retention Rate (CRR)

If you notice that you start losing customers almost as fast as you gain them, it is a likely indicator that something is wrong with either your products or customer service.

Repeated customers are considered the lifeblood of any e-commerce business, as it costs less to retain satisfied customers than it is to acquire new customers.

The customer retention metric allows you to keep track of your ability to retain customers once you have acquired them.

To analyze CRR, subtract the number of new customers gained in a period from the number of customers at the end of that point. Now divide the results by the number of customers you had at the beginning of the period, then multiply that by 100.

CRR is directly related to customer satisfaction and customer loyalty, so do not overlook the value behind this metric.

Site Activity Measurements

Keep a close eye on what visitors do when they come to your site. If they fall out quickly, look for the problem that is causing them to leave.

Some of these issues may include loading page speed, usability of pages, or discrepancy between what the visitor was searching for and what you were offering.

It also means that you need to make sure your ads are aligned with their landing pages.

How many pages do your visitors go through? How long are they left on these pages? Where do they go when they leave your site?

By carefully tracking your visitor’s actions, you can find out where they are leaving you and start working on fixing the problem so that they leave your site without putting anything in their shopping cart.

Customer Acquisition Cost (CAC)

While it is clearly important to ensure that your customer base grows over time, it is also just a piece of the puzzle. If you spend an average of $ 50 on acquiring all of your customers, but the average order value is only $ 45, that means your online store is operating at a loss. This is when calculating your Customer Acquisition Cost (CAC) can help you.

CAC can track the average cost of acquiring a single customer, including everything from your marketing and sales costs to the cost of paying your employees and hosting your eCommerce site.

It gives you the total number, but you can also measure your CAC from sources, e.g. Various traffic channels like social media or email lists.

There are several ways you can reduce your customer acquisition costs. First, you can optimize your advertising to spend less for each acquired customer. You can also invest in free organic marketing like SEO and social media marketing.

There is also the opportunity to invest in referral marketing by encouraging your existing customers to present your store to their friends and family. Lastly, you could spend some time improving your call rate.

Bounce rate for shopping cart

It can be a painful sight to see a potential customer put their shopping cart in, and then continue to give it up until they have finished buying their item.

There are many reasons why this happens, the most common being being:

High shipping costs or unexpected fees A lengthy payment process that extends far beyond a single page The user experience is terribly structured The guest payment option is not available Concerns about payment security

The rejection rate of the shopping cart is an important metric for e-commerce business owners to keep track of. It can help you locate issues that are happening at your online shopping site.

To measure your cart load, start by dividing the number of completed shopping baskets over a given time by the total number of wagons loaded during this period. When done, you will multiply the results by 100.

Bounce Rate

This metric is somewhat related to the wagon load rate. Essentially, the bounce rate of a site is the percentage of visitors to a particular site who navigate away from the site or are rejected after seeing only a single page. The bounce rate behind an eCommerce site can usually be quite high. If for some reason your eCommerce site has an unusually high bounce rate, it could be an indicator of several serious issues in your user experience.

Bounce rate is measured by the total number of visits to a page divided by the total number of entries to the site.

Google Analytics is an excellent tool that can help you keep track of your bounce rates. If you are not already keeping track of this metric as part of your strategy, jump on it immediately.

Net Promoter Score (NPS)

The Net Promoter Score (NPS) is a less tangible measure compared to others on this list, but it still plays a crucial role. NPS is a survey that can measure how likely your customers are to recommend your products to a friend or family member.

The metric is generally determined by sending a survey to several existing customers and asking them how likely they are to recommend your brand on a scale of one to ten.

Customers who respond with nine or ten can be labeled as promoters, while those who respond with a seven or eight are known as neutral. Anything that goes below the seven should be considered opponents.

To calculate your NPS metric, start by subtracting the percentage of opponents from the percentage of promoters. NPS is considered as one of the best methods for measuring customer satisfaction.

Conversion Rate (CR)

It’s very likely that your e-commerce store is already tracking call rates on its site. Still, it is crucial to emphasize the value of tracking the call rate and how it relates to other metrics on this list.

To determine your call rate, divide the number of conversions (those who made the type of action you wanted them to take) by the total number of visitors who have the chance to act.

Although the average conversion rate for an e-commerce business is somewhere around 2%, it is important to know that the average conversion rate may vary based on the industry.

The conversion rate of a site that sells luxury shoes will not have the same conversion rate as a cheap clothing store.

Email CTR

When your eCommerce site sends an email to its customers, it should always include a call to action (CTA) and a tracking link that monitors responses. Clickthrough rate (CTR) calculates the percentage of emails sent that detect at least a single click.

You have two options for measuring clicks. The first involves comparing unique clicks with the total number of emails sent out. The second option is to associate a unique click with the number of emails opened, but not the total number of emails sent.

CTR will be significantly different and it all depends on the method you use. If you use an email provider, you need to have access to the data needed to calculate the results.


Understanding which eCommerce analytics metrics are crucial to ensuring that your eCommerce site can grow smoothly is crucial.

Data has become a necessity in today’s world, and if you take advantage of the information that is readily available to you, you will ultimately fail.

Your competitors are already taking full advantage of these metrics, so consider doing so as well. If you need help with your metrics, you can see how we can help you with your metrics.

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