The National Retail Federation predicts that online is going to be the major driver of growth for retail in the next years to come. No surprises here: consumers spend more and more time on mobile discovering and comparing products -- a perfect opportunity for businesses to capture buyer’s intent in the “micro-moments.”
Yet as retail is undergoing this massive shift, many stores are teetering on the brink of bankruptcy -- and the competition gets tougher for the young disruptors. To grow business and increase sales, e-commerce marketers need to ensure they are tracking web conversions and measuring the right KPIs.
Here are 44 essential metrics every e-commerce business should be measuring.
Business Health Metrics
| Customer acquisition cost (CAC) | Calculate how much it costs you to acquire a customer |
| Average order value | Calculate how much revenue each order brings to your business |
| Customer lifetime value (LTV) | Predict how much money a customer will bring over the entire future relationship with your business |
| Percentage of returning customers | Calculate the percentage of people who come back and buy more after making the initial purchase |
| Sales conversion rate | Calculate the percentage of visitors who become your customers |
| Revenue generated from marketing campaigns (marketing ROI) | Calculate how much revenue is generated for all marketing activity |
Website and App Metrics
| Site availability | Determine if you can access a website by going to its URL and view the site’s content as expected |
| YoY traffic changes | Compare the number of visitors for one period to the same period the previous year |
| Time on site | Measure how much time visitors spend on your website |
| Number of pages visited | Measure how many pages a visitor views per session |
| Number of app downloads | Calculate how many people downloaded your app from Apple’s App Store or Google Play |
| Sales conversion rate | Calculate the percentage of website visitors who become your customers |
| Average order value | Calculate how much revenue each order brings to your business |
| Orders by session | Measure how many orders each session (visit) brings to your business |
| Shopping cart abandonment rate | Calculate the ratio of the number of abandoned shopping carts to the number of initiated transactions |
Customer Experience Metrics
| Website loading time | Measure how long it takes for your website pages to load |
| App daily active users (DAU) | How many people use your app daily |
| Pageviews per user | Measure how easy it is to navigate your website |
| Page abandonment | Measure how many visitors leave a page before completing the desired action |
| New users/repeat users by pages | Measure how many new visitors your website pages get versus the number of repeat visitors |
| Bounce rate | Calculate the percentage of visitors to a particular website who navigate away from the site after viewing just one page |
Loyalty Metrics
| Customer lifetime value (CLV) | Predict how much profit a customer will bring over the entire relationship with your business |
| Net promoter score (NPS Score) | Measure the willingness of your customers to recommend your company’s products or services to others |
| Repeat purchase rate | See the percentage of your current customers that come back to shop again |
Paid Search Advertising Metrics
| Spend | Calculate how much money was spent on advertising for a given date range |
| Clicks | Measure many times users click on your ad and get to the landing page |
| Impressions | Measure how many times users saw your ad |
| Click-through rate (CTR) | Calculate the number of clicks divided by the number of impressions |
| Average cost per click (CPC) | Measure how much on average you were charged for a click (calculated by dividing the total cost of your clicks by the total number of clicks) |
| Conversions | Measure how many times a click turned into a business result (a sign-up, a sale, or any other action taken by the user) |
| Conversion rate | Calculate the number of conversions divided by the number of clicks |
| Cost per conversion | Measure how much you pay for a conversion |
Social Media Advertising Metrics
| Spend | Calculate how much money was spent on advertising for a given date range |
| Network referrals | Track which social networks are driving most traffic |
| Social media conversions | Measure conversion by social networks to understand which ones bring the most valuable shoppers |
| Clicks | Measure many times users click on your ad and get to the landing page |
| Frequency | Understand when to set a frequency cap to prevent your audience from getting fatigued |
| Relevance score | See how well your current ads are performing and whether you should make any changes |
Email Metrics
| Open rate | Calculate the percentage of email recipients who open a given email |
| Clickthrough rate | Calculate the percentage of email recipients who clicked on links in a given email |
| Conversion rate | Calculate how many people completed the desired action |
| Bounce rate | Measure the percentage of your emails that could not be delivered to the recipient’s inbox |
| List growth rate | Calculate the rate at which your email list is growing |
| Email forwarding rate | Calculate the percentage of people who clicked on a “forward to a friend” button |
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