GITNUX MARKETDATA REPORT 2023

Must-Know E Commerce Metrics

Last Updated: October 31, 2023

Written & Summarized by: Jannik Lindner

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Highlights: The Most Important E Commerce Metrics

1. Conversion Rate
2. Average Order Value (AOV)
3. Cart Abandonment Rate
4. Bounce Rate
5. Time on Site
6. Customer Lifetime Value (CLV):
7. Return on Advertising Spend (ROAS)
8. Cost per Acquisition (CPA)
9. Revenue per Visitor (RPV)
10. Website Traffic
11. Click-Through Rate (CTR)
12. Customer Retention Rate
13. Gross Margin
14. Churn Rate
15. Customer Acquisition Cost (CAC)
16. Net Promoter Score (NPS)
17. Email Open Rate
19. Social Media Engagement
20. Return on Investment (ROI)

E Commerce Metrics: Our Guide

Navigating the complex world of E-commerce highly depends on understanding critical metrics that drive sales and customer engagement. Our updated report will take you through the must-know E-commerce metrics that directly influence your business success. Get ready to unlock the potential of your E-commerce business by tracking, understanding, and optimizing these fundamental performance indicators.

Conversion Rate

The percentage of website visitors who complete a purchase, calculated by dividing the total number of completed transactions by the total number of website visitors.

Average Order Value

The average amount of money spent by customers per transaction. It is calculated by dividing the total revenue by the total number of completed transactions.

Cart Abandonment Rate

The percentage of customers who abandon their shopping carts, calculated by dividing the abandoned carts by the total number of carts created.

Bounce Rate

The percentage of one-page website visitors, potentially signaling issues like irrelevant traffic, subpar design, or unengaging content.

Time On Site

The average amount of time visitors spend on the website during a single session, which can provide insights into the overall user experience and content quality.

Customer Lifetime Value

An estimate of the total revenue a business can expect to generate from a customer over their lifetime as a customer.

Return On Advertising Spend

A metric assessing digital advertising campaign effectiveness, obtained by dividing campaign revenue by its total cost.

Cost Per Acquisition

The average expense incurred in acquiring a new customer through marketing and advertising efforts.

Revenue Per Visitor

The average amount of revenue generated per visitor to an e- commerce website, calculated by dividing total revenue by the total number of website visitors.

Website Traffic

The total number of website visitors over a specific period, which can provide insights into marketing efforts and overall brand reach.

Click-Through Rate

The percentage of users who click on an advertisement or email link, divided by the total number of viewers or recipients.

Customer Retention Rate

The percentage of customers who continue to make purchases from an e-commerce business over a given time period.

Gross Margin

The difference between revenue and the cost of goods sold (COGS), expressed as a percentage of revenue. Gross margin indicates the profitability of the business and its pricing strategy.

Churn Rate

The percentage of customers who discontinue business with an e-commerce company within a specified time, offering insights into satisfaction and retention strategies.

Customer Acquisition Cost

The total cost associated with acquiring a new customer, including marketing, advertising, and incentive expenses.

Frequently Asked Questions

What are the key E-commerce metrics that businesses should track?

The crucial E-commerce metrics businesses should track are conversion rate, average order value, customer lifetime value, cart abandonment rate, and revenue per visitor.

How is the conversion rate calculated in E-commerce?

Conversion rate is calculated by dividing the total number of completed transactions by the total number of visitors and then multiplying the result by 100 to get a percentage.

Why is monitoring the average order value (AOV) important for online businesses?

The average order value is essential for online businesses because it shows the average amount of money spent by customers per transaction. Monitoring AOV helps businesses identify opportunities to up-sell and cross-sell products, which can lead to increased revenue.

How can E-commerce businesses improve their cart abandonment rate?

E-commerce businesses can improve their cart abandonment rate by optimizing the user experience, offering discounts or incentives, simplifying the checkout process, providing multiple payment options, and remarketing to customers who have abandoned their carts.

What is customer lifetime value (CLV) and how does it impact E-commerce businesses?

Customer Lifetime Value (CLV) is the prediction of the net profit attributed to the entire relationship with a customer. It helps E-commerce businesses understand the long-term value of their customers, allowing them to make more informed decisions about customer acquisition and retention strategies.

How we write these articles

We have not conducted any studies ourselves. Our article provides a summary of all the statistics and studies available at the time of writing. We are solely presenting a summary, not expressing our own opinion. We have collected all statistics within our internal database. In some cases, we use Artificial Intelligence for formulating the statistics. The articles are updated regularly. See our Editorial Guidelines.

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