12 Essential Ecommerce KPIs & Metrics to Track

Everyone wants to know how their business is doing. It is a must in every industry. And if you have a website to operate, naturally, you want to know whether or not your website is effective.

But is there a way to understand that? Of course, there is!

Key Performance Indicators – or KPIs, for short – are on your side to have a good grasp of what is actually going on with your website. As one can see immediately, it is of high importance to look into KPIs to make necessary adjustments to your site.

What are Ecommerce KPIs and Metrics?

There is, in fact, no to a very little difference between KPIs and metrics. Metrics can be defined as a method of quantitative measurement. According to Investopedia:

Executives use them (metrics) to analyze corporate finance and operational strategies. Analysts use them to form opinions and investment recommendations. Portfolio managers use metrics to guide their investing portfolios. Furthermore, project managers also find them essential in leading and managing strategic projects of all kinds.

Okay, but what are KPIs? KPI is an umbrella term for the metrics that matter the most. However, it does not mean that one metric creates a KPI. On the contrary, you will need more than one metric to find the value of a KPI.

To say, you want to find the conversion rate for your website – one of the most important KPIs – you will take two metrics to find that rate. The number of goal completion divided by the total number of visitors gives you the conversion rate. In other words, metrics enable us to find the value of a KPI.

12 Ecommerce KPIs to Grow Your Sales

woman checking ecommerce kpi metrics

Now, you might start wondering which KPIs are essential to growing your sales. No problem, here you can find 12 KPIs that are important for your site to grow in sales. Keep in mind that the list is not in a particular order and you can always add more KPIs according to your needs.

1. Shopping Cart Abandonment Rate

miniature shopping cart on laptop keyboard

This KPI is important simply because you can see whether checking out is effortless or not. If a customer thinks it is too complicated to check out it will abandon the shopping cart.

To find it, you have to divide the number of successful transactions by the number of shopping carts, then multiply the result by a hundred. This is your shopping cart abandonment rate.

Due to cart abandonment, Ecommerce sites lose $18 billion in sales. To avoid this result, you can email them in different ways.

2. Conversion Rate

We have already discussed how you can find this KPI. Nevertheless, you have to know that it is significant to understand the success of your website. It is an industry practice to optimize your site in order to get better conversion rates.

3. Cost of Customer Acquisition (CAC)

Many marketers pay to advertise our companies to attract more customers to your product. That is in the nature of any business. However, have you ever wondered how much a customer costs you? This KPI is useful for you to make changes in your marketing campaign to have minimal cost with maximum customer rate.

CAC’s formula is quite simple. You divide your marketing expenses by the new customers you get. Thus the formulation will be as such; Costs you have spent on acquiring customers divided by the number of new customers. For example, let’s say you spent $50 for 25 customers. This means $2 is how much a customer costs to you.

4. Customer Lifetime Value (CLV)

CLV is crucial to see how much a customer makes you profit. If this number is low, you can take steps to increase customer loyalty.

The formula to calculate this KPI’s value is as follows; (Customer’s Annual Profit Contribution × Average Years as a Customer) – Initial CAC.

So in a context where your customer contributescustomer gives contributes your company $100 for four years and CAC is $2, CLV is $398.

5. Repeat Purchase Rate (RPR)

Repeat purchase rate is one of the best ways to understand how loyal your customers are. If this number is relatively high, it means you are doing a great job and they are loyal to you.

The calculation formula goes like this; Purchases from Repeat Customers / Total Purchase

6. Churn Rate

churn rate transcribed on a notebook

Customers leave, customers come. This is the rule of the business. Still, do you want to know at which percentage your customers are leaving? This can be found via churn rate.

So, the first thing in order is to take the number of customers at the end of the month and subtract it from the number of customers at the beginning of the month. Then, divide the remaining number by the number of customers at the beginning of the month. Finally, multiply it by one hundred. This is your monthly churn rate.

So to say, you have 100 customers at the beginning of the month, at the end of the month this number drops down to 75. So, 100 – 75 is 25. 25/100 is your monthly churn rate. If you are to multiply this rate by 12 to find the annual churn rate, you will have the rate of 75/100.

7. Average Order Value (AOV)

As its very name signifies, AOV is about how much an average customer spends when they check out. You can find it by dividing total revenue by the total number of orders.

8. Pageviews per Session

The time customers spend on your website is called a session. In a typical session, you view several pages. But, if a person is to view so many pages in a session to take the desired action. It might not actually bebe actually good for your business.

You don’t want to feel like you're inlike in a maze when you want to just buy an item. Thus, if this KPI returns in a high value it means that you have to make this process less complicated.

The formula for this KPI is very simple. Total Number of Pageviews divided by Total Number of Visitors.

9. Bounce Rate

There are some people who do not view more than one page in one session. They bounce back. Keeping this rate low and not repelling a person who just visited your website is quite important.

You can quite easily calculate this rate by dividing the total number of bounces by the total number of visits.

10. Email Open Rate

one new email conncept

It simply shows how many people have opened the emails you have sent to them. There are many strategies to raise the email open rates such as avoiding spam filters.

The formula is; Total Number of Unique Open / Number of Successfully Sent Emails.

11. Email Click-Through Rate (CTR)

The emails you have sent are not empty, of course, they contain a link or several links. With that being said, how many clicks your site gets through emailing your customers is a key indicator of comprehending your emailing campaign.

So, by dividing the Total Number of Individuals Clicks by the Total Number of Email Opens you will see your campaign’s success.

12. Email Conversion Rate

The next step to grasp the success of your campaign is looking into Email Conversion Rate. It is approximately the same thing with the conversion rate – the only difference is the domain.

The calculation method is quite simple too, divide the number of conversions by the number of successful email deliveries, then multiply that number by one hundred. Voila! You will get the email conversion rate.

business woman looking at an email inbox

All in all, KPIs are of high significance for you to comprehend how successful your website or marketing campaigns are. Of course, there are more than 12 KPIs to track your website’s efficiency, however, these 12 KPIs are the ones that are important in every stage of your website’s development.

Thus, it is no surprise if one says you have to keep KPIs in the desired value.

For your website to have desired rates, you have to come up with different strategies. For example, you can check out Popupsmart’s popups. They are one of the easiest ways to keep your KPIs at the optimum value. Moreover, you can easily import a popup when there is a need.

One of the best strategies to get your emails opened in the first place is to use humorous subject lines.

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