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What are Some of the Most Important Ecommerce Analytic Metrics You Need to Know

It’s essential to know the precise information to make an informed decision when it comes to running an eCommerce business. These days, data-based decision-making has become a critical part of any business, and that includes the eCommerce industry. As an eCommerce business owner, you need to take some time to learn about eCommerce metrics. 

Of course, you’ll likely want to concentrate on metrics that have the most impact on your bottom line. Yet, there still is the possibility of you wasting your time tracking vanity metrics that have barely any influence on your overall business performance. For example, social media likes, page views, and unqualified leads in the sales funnel all fall into this category. 

Having the skills to gather and analyze eCommerce metrics is essential for 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’ll cover the most relevant eCommerce analytic metrics you need to know. We will go into enough details concerning these metrics and let you know why they play such a crucial role in your business. 

Determining the eCommerce metrics that matter

Remember, there is very little value in monitoring too many metrics if it is not serving a meaningful purpose for the long-term success of your eCommerce business. It’s highly recommended that you take some time to identify the key performance indicators (KPI’s) that constantly have the most significant impact on your overall business goals. 

If you are unsure of the difference between the two terms, here’s what you need to know. Metrics track the progress of any business process, while KPIs are the metrics that let you know how effective you are at reaching a specific goal. 

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

The metrics we plan to share with you throughout this article are ones used by some of the most successful eCommerce companies. None of these are newly thought up ideas born from the latest trends. 

They are tried and tested strategies you can apply to your business with little to no hesitation. Start your metric analysis with these, then expand further when you’ve seen the proven results. 

Ecommerce Metrics you should observe

If you are spending a good amount of cash on click-on 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 you are making a bright decision when it comes to ad spend and other expenses, you need to understand your average order value (AOV), customer lifetime value (CLV), and total customer acquisition (CAC). A tight grasp on these numbers will assist you in improving your business goals and ensure 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 attributing to the average value of each purchase made in your online store. 

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

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

  • Offer the customers products as a package so they can receive a small discount for each item as opposed to purchasing separately. 
  • Offer them free shipping on purchases above a specific threshold to compel customers to maximize their spending. 
  • Upsell the customer’s complimentary items that improve the usability of their initial purchase. 

Customer Lifetime Value (CLV)

Customer lifetime value (CLV) calculates the total amount of what you have earned from an average customer of their lifetime. For example, let’s say one of your customers has made six transactions, with each one worth $40 throughout their life. 

The CLV would be at $240. Keep in mind that you still need to deduct the acquisition costs from this number, which arrives at our next point. 

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

Customer Retention Rate (CRR) 

If you notice that you are starting to lose customers almost as fast as you’re getting them, that is a likely indicator that something is very wrong with either your products or customer service. 

Repeat customers are considered the lifeblood for any eCommerce business since it costs less to retain satisfied customers than it is to acquire new customers. 

The customer retention rate metric enables you to keep track of your ability to retain customers once you’ve acquired them. 

To analyze CRR, you need to subtract the number of new customers gained during a period from the number of customers at the end of that time. Now, divide the results by the number of customers you had at the start of the period, then multiply it by 100. 

CRR is directly associated with customer satisfaction and customer loyalty, so don’t overlook the value behind this metric. 

Website activity metrics

Keep a close watch on what visitors are doing once they come to your website. If they are dropping out rapidly, you need to look for the issue causing them to leave. 

Some of these issues could include page loading speed, page usability, or incongruence between what the visitor was searching for and what you are offering. 

That also means you need to ensure that your ads are aligned with their landing pages. 

How many pages are your visitors going through? How long are they remaining on those pages? Where do they go once they leave your site? 

By closely tracking your visitor’s actions, you can find out where they’re leaving you and start to work on righting the issue causing them to leave your site without placing anything in their cart. 

Customer Acquisition Cost (CAC)

While ensuring that your customer base is growing over time is clearly essential, it’s also only one piece of the puzzle. If you are spending $50 on average to acquire all of your customers, but the average order value is only $45, that means your online store is operating at a loss. That is when calculating your customer acquisition cost (CAC) can help you out.  

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

That shall provide you with the overall figure, but you can also measure your CAC by sources, such as various traffic channels like social media or email lists. 

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

There is also the option to invest in referral marketing by encouraging your existing customers to introduce your store to their friends and family. Lately, you could spend some time improving your conversation rate. 

Shopping Cart Abandonment Rate 

It can be a painful sight to see a potential customer load up their shopping cart, then proceed to abandon it before they finish purchasing their item. 

There are many reasons why this occurs, with the most common reason being: 

  • High shipping costs or unexpected fees
  • A prolonged checkout process that goes far beyond a single page
  • The user experience is structured terribly
  • Guest checkout option is unavailable 
  • Concerns over payment security 

The shopping cart abandonment rate is an essential metric for eCommerce business owners to keep track of. It’s capable of helping you pinpoint issues that are happening on your online shopping site. 

If you want to measure your cart abandonment rate, you need to start by dividing the number of finished cart checkouts during a provided time by the total number of carts loaded during that period. Once that is done, you will multiply the results by 100. 

Bounce rate

This metric is somewhat related to the cart abandonment rate. Essentially, the bounce rate of a website is the percentage of visitors to a specific website who navigate away from the site, or bounce, after viewing only a single page. The bounce rate behind an eCommerce site can be pretty high for the most part. If for some reason, your eCommerce site has an unusually high bounce rate, that can be an indicator for several severe issues occurring within your user experience. 

Bounce rate is measured by the total number of one-page visits divided by the total number of entries to the website. 

Google Analytics is an excellent tool that can assist you in keeping track of your bounce rates. If you are not already keeping track of this metric as part of your strategy, then you need to hop on it right away. 

Net Promoter Score (NPS)

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

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

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

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

Conversion Rate (CR)

There is a high chance that your eCommerce store is already tracking conversation rates on its website. Even so, it’s crucial to stress the value of tracking the conversation rate and how it relates to other metrics on this list. 

To determine your conversation rate, you need to divide the number of conversions (the ones who took the type of action you wanted them to take) by the total number of visitors who have the chance to take action. 

While the average conversion rate for an eCommerce business is somewhere around 2%, it’s vital to know that the average conversion rate can vary based on the industry. 

The conversion rate for a website that sells luxury shoes will not have the same conversion rate as a low-priced clothing store. 

Email Click-through Rate

Whenever your eCommerce website sends out an email to its customers, it should always include a call to action (CTA) and a tracking link that monitors responses. The click-through rate (CTR) calculates the percentage of emails sent that register at least a single click. 

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

The CTR will be considerably different, and all depend on the method you use. If you are using an email service provider, you should have access to the data needed to calculate the results. 


It’s crucial to understand which eCommerce analytic metrics play a crucial role in ensuring that your eCommerce site can grow smoothly. 

Data has become a necessity in today’s world, and if you are taking advantage of the information that’s 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 assistance with your metrics, check out how we can help you with your metrics.

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