The key eCommerce metrics to track are: conversion rate, gross margin, average order value, cost per acquisition, checkout abandonment, customer lifetime value, return on ad spend, and performance by device type (mobile vs. desktop).
Why track conversion rate?
Monitoring conversion rate helps you identify issues in the customer journey that are preventing visitors from becoming buyers. Improvements can increase revenue.
What does gross margin indicate?
Gross margin shows the profitability of item sales after accounting for product and operating costs. It enables making decisions to improve profitability.
How can average order value be used?
Average order value calculates the typical revenue generated per order. Combined with conversion rate, it shows how much revenue each website visitor produces through purchases.
Why is cost per acquisition important?
Knowing the average cost to acquire a new customer allows you to gauge return on investment from marketing campaigns and channels. Lower acquisition costs can mean higher lifetime value.
When should checkout abandonment rate be reviewed?
A high checkout abandonment rate means many customers are dropping off at the last step before completing a purchase. Identifying why is key to removing obstacles and recovering lost sales.
What does customer lifetime value indicate?
Customer lifetime value represents the average revenue earned from a customer over the entire relationship. It distinguishes high-value repeat customers from one-time shoppers.
How to use return on ad spend?
Comparing advertising costs to sales revenue generated allows optimizing marketing budget allocation to the most efficient platforms and campaigns.
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