- Conversion Rate: This measures the percentage of website visitors who make a purchase. A high conversion rate means that your website is effective at turning visitors into customers. Tracking this KPI can help you identify areas where you can improve your website’s design, user experience, and marketing efforts to increase sales.
- Average Order Value (AOV): This measures the average amount of money customers spend per order. By increasing your AOV, you can boost your revenue and profitability. This KPI can help you identify opportunities to cross-sell or upsell to customers, offer promotions or bundles, and improve your product selection.
- Customer Acquisition Cost (CAC): This measures how much it costs to acquire a new customer. By reducing your CAC, you can improve your profit margins and increase your return on investment (ROI) for your marketing efforts. This KPI can help you identify which marketing channels are most effective and which ones may need to be optimized or eliminated.
- Customer Lifetime Value (CLV): This measures the total value a customer will bring to your business over their lifetime. By increasing your CLV, you can improve your revenue and profitability over the long term. This KPI can help you identify opportunities to retain customers through excellent customer service, loyalty programs, and personalized marketing efforts.
- Gross Profit Margin: This measures the percentage of revenue that remains after deducting the cost of goods sold (COGS). By increasing your gross profit margin, you can improve your profitability and reinvest in your business. This KPI can help you identify areas where you can optimize your pricing, negotiate better supplier terms, and reduce costs.
- Return on Advertising Spend (ROAS): This measures how much revenue you generate for every dollar spent on advertising. By increasing your ROAS, you can improve your marketing effectiveness and maximize your return on investment. This KPI can help you identify which advertising channels are most effective and which ones may need to be adjusted or eliminated.
- Cart Abandonment Rate: This measures the percentage of shoppers who add items to their cart but do not complete their purchase. By reducing your cart abandonment rate, you can improve your conversion rate and revenue. This KPI can help you identify opportunities to improve your checkout process, offer incentives to complete the purchase, and optimize your website for mobile devices.
- Website Traffic and Bounce Rate: This measures the number of visitors to your website and the percentage who leave after viewing only one page. By increasing your website traffic and reducing your bounce rate, you can improve your visibility and engagement with potential customers. This KPI can help you identify which marketing channels are most effective at driving traffic, which pages need to be optimized for better user experience, and which content is most engaging to visitors.
Top KPIs Every eCommerce Business Owner Should Monitor
