Top 10 eCommerce Metrics that Anyone Can Track in All CMS

Ecommerce Website

E-commerce metrics are like the milestones on the road to online business success. It would be beneficial to monitor metrics to make progress towards sales, marketing, and achieving customer service goals. Here are some of the eCommerce metrics that everyone should take care of.

1. Total sales

It is expressed as an amount of money that means how well your online store is doing. It is an important part to measure the overall growth and revenue of your business.

2. Conversion rate (CR)

It represents the percentage of how many customers visited your online store and made a purchase. It is calculated by dividing the number of sessions of the site by a transaction by the total number of sessions over a specific period. The average conversion rate for an e-commerce industry is 2 %.

3. Average order value (AOV)

Your AOV is the ratio of total revenue generated to the number of orders taken through your site. Increasing your AOV increases the growth of your business.

4. Purchase frequency

It is equal to the number of orders divided by the number of unique customers in a year. Purchase frequency optimization is not usual as it involves off-site activities.

5. Retention period

Your retention period is the length of time an average customer is active on your online store. They are considered inactive if they do not purchase anything for more than 6 to 12 months. It is beneficial for your business to keep an eye on the retention period of customers.

6. Customer lifetime value (CLV)

CLV is calculated by the multiplication of other three metrics i.e., AOV, purchase frequency, and retention period. It is a good catch-all metric.

 7. Cart abandonment rate (CBR)

Your CBR is equal to the percentage of visitors that leave your site without purchasing after adding a product into their shopping cart. It is determined by wide-ranging metrics of micro-conversions.

8. Checkout abandonment rate (CAR)

The CAR is the percentage of visitors that start the process of checkout but leave without completion of purchase. The average CAR value is 25% for the industry.

9. Return on advertising spends (ROAS)

Your ROAS is measured as the percentage of an initial investment. It can be increased in two ways – by reducing ad spend and by increasing ad revenue.

10. Cost per acquisition (CPA)

The CPA is the amount of money you need to spend to gain a new customer. It requires you to figure out all your marketing activities which makes it a little tricky to calculate. You’re a CPA who needs to be lower than CLV for better growth in your online business.

All these key metrics are very important to identify the brand sale and product growth in the market. Analytics is an essential part of the business and every business should keep eye on all these parameters.

Keep tracking all these important metrics and boost your sales to the next level with the help of these metrics!

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