Looking to level up your business? Tracking your progress is key. You need to know what’s working and what’s not. But let’s be honest, figuring out what and how to track can be a real headache.
No worries, though! I’ve got your back. In this article, I’ve compiled the ultimate list of the top 30+ eCommerce metrics and KPIs you need to measure the health of your business. Say goodbye to confusion and hello to clarity.
We’ll dive deep into each metric, exploring its definition, why it matters, and how to calculate it. Plus, I’ll hook you up with useful tools and resources to make your tracking journey a breeze.
Get ready to unlock the secrets of eCommerce success. Let’s kickstart this revamp and supercharge your business performance!
What are eCommerce metrics?
eCommerce KPIs or eCommerce performance metrics literally show how your business is doing. It gives you a yardstick to measure the success of your business.
Selling online without keeping track of your eCommerce analytics metrics is like crossing the road with your eyes closed. No business can survive if you don’t follow how you’re doing and compare progress over time.
How to Measure eCommerce Success?
Measuring the success of your eCommerce business is crucial to understanding its performance and making informed decisions for growth.
Here are some key steps to effectively measure your eCommerce success:
- Define your goals: Start by establishing clear and specific goals for your eCommerce business. These goals could include increasing sales revenue, improving conversion rates, boosting customer retention, or expanding market reach. Clearly defining your objectives will provide a framework for measuring success.
- Identify key performance indicators (KPIs): Determine the KPIs that align with your business goals. Some common eCommerce KPIs to consider include:
- Conversion rate: Measure the percentage of website visitors who make a purchase. It indicates the effectiveness of your website and marketing efforts in driving sales.
- Average order value (AOV): Calculate the average amount spent per customer order. A higher AOV suggests increased customer engagement and potentially higher profits.
- Customer lifetime value (CLTV): Assess the total value a customer brings to your business over their entire relationship with your brand. Tracking CLV helps you understand the long-term profitability of your customer base.
- Cart abandonment rate: Monitor the percentage of users who add items to their cart but don’t complete the purchase. A high abandonment rate may indicate friction in the checkout process or ineffective marketing strategies.
- Set up analytics and tracking: Implement robust analytics tools like Google Analytics or other eCommerce analytics platforms to track relevant metrics. Set up goal tracking, funnels, and e-commerce tracking to gather accurate data on user behavior, conversions, and revenue.
- Monitor traffic sources: Analyze the sources of traffic to your eCommerce site, such as organic search, paid advertising, social media, or referrals. Understanding which channels drive the most valuable traffic can help optimize your marketing efforts.
- Analyze customer behavior: Gain insights into how customers interact with your website. Monitor metrics like time on site, page views, bounce rates, and exit rates to identify areas for improvement in user experience.
- Track revenue and profitability: Regularly monitor your revenue and profitability metrics, such as gross profit margin, net profit margin, and return on investment (ROI). These numbers provide a clear picture of your financial performance.
- Benchmark against industry standards: Compare your performance to industry benchmarks and competitors to gauge your eCommerce success. This analysis can highlight areas where you excel and areas that need improvement.
- Continuously optimize: Regularly review your metrics and adjust your strategies accordingly. Identify patterns and trends to capitalize on successful tactics and address areas that require improvement.
Remember, measuring eCommerce success is an ongoing process. Stay agile, adapt to changing market dynamics, and use data-driven insights to fuel continuous growth and success for your online business.
Now, let’s dig deeper and understand the importance of eCommerce metrics and KPIs.
What is the importance of eCommerce metrics
As mentioned above, tracking eCommerce metrics is very important. Not only does it tell you where your business is headed it also helps in picking up red flags and doing course corrections whenever required.
Here are a few practical examples of what makes measuring key metrics for eCommerce an absolute necessity:
- Measure financial performance – vital for keeping your cash flow healthy.
- Reveal the truth about performance, from the highest level (your overall business), through departments, teams, and right down to each individual.
- Provide an actionable way to achieve overall business strategies and goals.
- Make sure employees are aware of what’s important to the business, by showing them what the business is being measured against.
- Highlight any issues that might otherwise go unnoticed, meaning that efficiency and productivity are given a boost.
Now in order to make measuring eCommerce Kpis simple, we have divided the eCommerce KPIs into the following categories:
- Website KPIs
- Sales KPIs
- Marketing KPIs
- Email KPIs
- Customer service KPIs
- Product performance KPIs
- Product category performance KPIs
Key eCommerce metrics to measure business success
This eCommerce KPI, the ‘metrics’ of web metrics or website KPI refers to the measurement, the science of measuring websites. Specifically, measuring website events, and extracting trends.
Benefits of website metrics or website KPIs:
- Tracking business goals online.
- Measure online traffic.
- Improves and optimizes website and web services.
- Optimizing and tracking marketing campaigns.
- Finding the right target audience and its capitalization.
- Conversion rate optimization (CRO)
- Tracking bounce rate.
Conversion Rate is a methodology made to help website proprietors in transforming guests into paying customers. CRO isn’t some dark enchantment; it is a logical testing procedure that allows you to follow various components of your site to figure out what produces a higher reaction out of your site guests.
To calculate your conversion rates, use the following formula.
Tips to increase conversion rate:
- Make it easy to buy from you.
- Use video to humanize your brand.
- Incorporate strong calls to action (CTAs) into every piece of content on your site.
- Include subscriber or social-media follower counts.
- Give your visitors, tunnel vision.
Shopping cart abandonment rate
The shopping cart abandonment rate is the percentage of online shoppers who add items to a virtual shopping cart but then abandon it before completing the purchase. It shows the rate of interested potential customers who leave without buying anything compared to the total number of shopping carts created.
To find out your shopping cart abandonment rate, use the following formula.
Tips to reduce cart abandonment rate:
- Provide a solid mobile-friendly shopping experience
- Making shipping options & costs clear
- Understand & use the best technology possible
- Speed up your eCommerce website
- Shorten & simplify the checkout process
Average order value
Average order value (AOV) tracks the average dollar amount spent each time a customer places an order on a website or mobile app.Your Average Order Value (AOV) can be determined with this very straightforward equation:
Tips to increase average order value:
- Have a loyalty program.
- Offer time-sensitive deals.
- Give product discounts.
- Provide bundle deals.
- Execute first time offers.
- Show cross-sell and up-sell items.
Gross profit margin
Gross profit is the profit a company makes after deducting the costs associated with making and selling its products, or the costs associated with providing its services. This is basically your benefit on the item after the deal, figuring the amount you spent on the stock yourself.
It is a significant eCommerce KPI that helps business visionaries to plan ahead. You can use this formula to calculate the gross profit of your business.
Tips to Improve Gross Profit Margin:
- Reduce the direct cost of goods.
- Increase staff productivity.
- Integrate new products or services.
- Increase prices.
- Improve supplier relationships.
Marketing KPIs (Key Performance Indicators) are specific, numerical marketing metrics that organizations track in order to measure their progress toward a defined goal within your marketing channels.
Here are different lists of marketing KPIs that help organizations track business data reports in order to measure their progress.
Benefits of marketing KPIs
- Help to achieve your business goals.
- Monitor the customer retention time.
- You can decide on the achievement of your marketing strategies and keep on improving.
Bounce rate is an Internet marketing term used in web traffic analysis. It represents the percentage of visitors who enter the website and then leave rather than continuing to view other pages within the same site.
Use the given below formula to calculate the bounce rate of your website.
Tips to reduce bounce rate:
- Pay attention to page load time.
- Rework your product pages.
- Use high-quality images & content to captivate user attention
- Use relevant keywords that are applicable to a site.
- Convincing call-to-action
The exit page is the last page a guest sees before they leave your site. In straightforward words, it shows the number of individuals who exit from a specific page. You can consider them to be a rate in Google Analytics and eCommerce metrics likewise known as leave rate.
Tips to reduce exit page rate:
- Improve your brand storytelling
- Keep your blog fresh with the right content
- Do A/B testing
- Create exit surveys
- Optimize call-to-action button
Page views per visit
Pages per visit is a Web analytics measure of how many pieces of content (Web pages) a particular user or group of users views on a single website.
Tips on how to increase page views per visit:
- Responsive design
- Create evergreen content
- Floating social share buttons
- Give visitors more relevant stuff to create a great user experience
- Your message comes first, so eliminate distractions
Average time on site
Average time on site is the average duration of time spent viewing your site.
Tips to improve average time on site:
- Keep your headlines’ promises
- Add video to your blog posts
- Make your content interesting
- Pay attention to your pages’ readability
Website traffic source KPIs reveal to you where guests are coming from or how they discovered your site. This will give data about which channels are driving the most traffic, for example, natural hunt, paid promotions, or online media.
Tips to increase website traffic:
- Pay attention to good search engine optimization
- Write insatiable content
- Update “expired” content on your website
- Promote content in relevant online communities
- Create and share high-quality infographics
PPC stands for pay-per-click, a model of internet marketing in which advertisers pay a fee each time one of their ads is clicked. It gives you the amount you’re investing in any of your promotions.
Tips on how to improve pay-per-click
- Focus on high-performing keywords
- Optimize your keyword bids
- Include a call-to-action(CTA)
- Customize your target audience, interests, location, and search terms.
Social media engagement
It reveals to you how effectively your fans or devotees are collaborating with your brand via web-based media. Social media engagement measures the public shares, likes, and comments on an online business’ social media efforts.
Tips For Increasing Your Social Media Engagement
- Mention your followers
- Ask for feedback and reviews.
- Share a surprising statistic.
- Use emojis to show human interaction
- Use social media management tools
Referral sources encourage you to recognize which sources are sending the most guests to your site. It might be by means of natural endeavors, PPC advertisements, or online media look.
Tips to increase referral sources:
- Offer recurring incentives for referrals
- Encourage social media sharing.
- Provide jaw-dropping customer service.
- Collaborate in more visible ways.
Email KPI helps to see how well your subscribers/customers are accepting your email messages. Email KPIs help to realize the number of supporters who opened, and clicked on the email that you sent.
Benefits of email marketing KPIs:
- Email KPIs help to track your campaign performance
- It provides the ultimate way to know about your audience and their interest.
Email list growth rate
Email list growth rate is the measurement to follow the rate at which your list is developing. You can ascertain this by taking the number of new subscribers minus the quantity of the ones that unsubscribe divided by the total number of your subscribers. All of multiplied by 100.
Tips on how to grow your email list growth rate:
- Add content upgrades to your blog posts.
- Create a new lead-generation offer
- Segment your email lists by buyer personas.
- Encourage subscribers to share and forward your emails.
- Create amazing email content.
Email bounce rate
It is the level of messages sent that were not effectively conveyed to the subscriber’s inbox. There are two classes of email skips: hard bounces and soft bounces.
Tips to get a low bounce rate:
- Avoid popups – don’t disrupt the UX.
- Create a compelling call-to-action(CTA).
- Improve your brand storytelling.
- Keep your blog fresh with the right content.
- Improve your content’s readability.
Email open rate
Email open rate is the level of the absolute number of endorsers who opened an email. These rates can change contingent on the headline and the importance of the topic for endorsers.
Tips to get good open rates:
- Use six to ten words in your subject lines to get the best open rate.
- Send your email campaigns during the workday and after lunch.
- Personalize subject lines with the reader’s name.
- Use a recognizable sender name.
Email click-through rate
Email click-through rate is determined by the number of supporters that have tapped on at any rate one connection in your email showcasing effort.
Tips to get high click-through rate:
- Keywords display in your URLs.
- Use ad extensions to increase visibility.
- Use symbols to get attention
- Raising your bid.
Sales KPIs are the metrics by which you will evaluate your team’s performance against your sales and organizational goals. For example, customer life value, returning customers, net profit, average profit margin, etc…
Benefits of sales KPIs
- Focus on the effective sales activities that help to achieve your goals
- Evaluate your team’s performance.
- Optimize your sales process.
Customer lifetime value
Customer Lifetime Value (CLTV) is a vital metric that measures the total revenue a business can expect from a customer throughout their relationship. It plays a crucial role in evaluating the success of a growing company.
To understand its calculation, let’s explore the CLTV formula below.
Tips to improve customer lifetime value
- Improve the onboarding process.
- Provide value-packed content that keeps customers engaged.
- Offer high-end customer service.
- Build relationships.
- Listen to your customers – collect actionable feedback
Returning customers define the ultimate goals for your business. It is the ratio of clients from a particular time who revisits your online store to buy more products. To calculate the returning customers ratio use given below formula:
It helps to track the daily basis report of the total number of clients that are returning to your online store.
Tips to increasing return customers
- Use personal forms of communication.
- Grow your customer base through referral programs
- Create exclusive discounts for your returning customers
- Maintain a quick response rate
Net profit is the estimation of a business’s benefit. It’s used to calculate the net income or turnover of a business to put a value metric on a company. To define net profit and net profit margin use the given below formula.
Tips on how to increase net profit
- Reduce insurance premiums
- Reduce business Expenses
- Increase sales revenue
- Focus on strategic innovation
- Create an incredible team
Average Profit Margin
Average profit margin tells you how much you make on the sale of each product or service. It helps to understand the profit margin and whether your business is successful or not. Use this formula to calculate the profit margin for your business.
Tips to improve average profit value:
- Reduce business and operating expenses
- Use inventory systems
- Analyze your profit margins
- Optimize vendor relationships
Customer retention rate
Customer retention rate is a key performance metric that helps to determine your business growth. Improving your customer retention rate is a basic need for every eCommerce business.
To calculate & improve your customer retention rate use this formula.
Tips to increase customer-retention rate:
- Use cross-selling and upselling strategies
- Create a loyalty program
- Pay attention to querie
- Be active on social
Orders per active customers
Order per active customer KPI helps to measure the total number of active customers during a specific time period.
Tips to get orders per active customers
- Set customer expectations
- Answer all questions and comments
- Use retargeting ads
- Improve KPIs around customer service
- Build trust through relationships
Customer acquisition cost
This eCommerce KPI helps to figure out the required cost per customer. Here you find the actual cost that you’re spending to secure another client.
Tips to Reduce Customer Acquisition Cost
- Turn your marketing efforts into automation.
- Use the benefits of creating a content.
- Boost your conversion rate with audience retargeting.
- Maintain the balance between acquisition and retention.
Customer Support KPIs
Customer Support KPIs enables us to monitor and analyze customer relations in order to further optimize customer interactions with the customer support team.
It helps us in managing the customer support team and reducing the cost of operation.Given below are some examples that help to understand the role of customer support.
Benefits of Customer Support KPIs:
- Check customer satisfaction score.
- Find the number of support tickets & complaints.
- Help to understand the business value.
Customer service chat count
Customer Service Chat Count KPIs help to improve your products and categories of services. It provides a live chat option for customer support that helps to convert visitors into customers through chat.
Tips on how to improve Customer Service Chat Count
- Use positive language
- Respond faster
- Collect relevant information
- Make live chat available where people have questions
Customer service email count
This is the most important customer service metric that helps to track the number of emails of your customer.
Tips to make your customer service emails
- Personalize your interactions
- Promise a timely result
- Good customer support
- Transform negative into positive language
- Be realistic about the situation
Net Promoter Score
Net promoter score provides insight into your customer relationships and helps to measure the customer experience of your online store.
Tips to Increase Net Promoter Score
- Create feedback communities
- Encourage customer recommendations
- Follow up fast
- Identify the high-impact journey
- Design your CX program
Average ticket resolution time
This KPI helps to analyze the average resolution time along with the first contact time to develop the best strategy to resolve the ticket.
Tips to reduce your average ticket response time
- Support customers proactively
- Establish set processes and responses for common customer problems
- Use support tools that contextualize customer profiles and problems
- Start measuring average ticket response time
First response time
First response time is the average time between the customer inquiry and customer service. This KPI shows the time how long a client waits before being assisted with their request.
Tips on how to reduce customer service response times
- Use time-based email alerts
- Categorize and prioritize the emails you receive
- Implement customer service software
Cost of the support ticket
This KPI is used for your business to provide top quality customer support at a fraction of the price.
Tips to reduce cost per ticket
- Implement a chatbot for better self-service engagement
- Increased proactivity
- Provide field representatives with data, tools, and training
- Analyze incident-to-service request ratio
Product Performance KPIs
Product Performance KPI enables us to rank the different products in terms of the revenue generated by them.
It helps us in finding which products are performing well and which ones are performing poorly.. Here you find some specific KPIs that help your business thrive.
Benefits of the products performance KPIs:
- Make the item’s exhibition quantifiable.
- Express the business Goals of your item.
- Work with proportion and ranges to evaluate your objectives.
Number and quality of product reviews
The number and quality of product reviews are the most important KPIs that help to track your eCommerce business with valuable feedback.
Tips to increase and improve your customer reviews
- Use product review tools to manage reviews.
- Make it easy for them to leave a review.
- Dominate your social media presence.
- Reply to negative reviews.
This KPI helps to know which product performs best in your business. With the help of this KPI, you can decide which products will be featured on top in your store.
Tips to increase sales of your top products
- Tell a story about your product
- Your sales message should be clear
- Build an effective product strategy
- Always strive for quality
Number of orders
With the help of this KPI, you determine your average order value and specific time periods to see when you should create a sale or discount offer for your products.
Time to purchase
Time to purchase KPI helps to understand how long it takes someone to buy your product. And you also check the behavior of customers across the different segments.
Product Category Performance KPIs
Product Category Performance KPIs enable us to rank different categories of products in terms of the revenue generated by them. It helps us to find which categories to put on the customer landing page.
Benefits of product category performance KPIs
- Help to check product performance.
- Analyze the sales volume margin of the products by category.
It measures active or inactive categorize of your products that show the specific time period of the customer during the purchase.
Tips to re-engage Active/Inactive Users
- Set small realistic goals
- Save your inactive client list as a Smart List
- Use social media marketing
- Provide encouragement and incentives
Top categories KPI helps to categorize the main feature of your product on your web page. And also help to measure top-performing products for your customers.
Tips to improve top categories of products
- Consider having a “What’s New” category or filter
- Optimize your product filters
- Use high-quality and contextually relevant image
How do you track eCommerce revenue?
You need better tools to analyze data effectively and optimize your business. Choosing the right eCommerce KPIs and tracking them accurately is crucial for measuring your eCommerce success.
To effectively track eCommerce revenue and measure your eCommerce success, it’s important to keep three essential objectives at the center of your strategy:
- Work with relevant eCommerce KPIs only.
- Measure your eCommerce KPIs as accurately as could reasonably be expected.
- Set up realistic benchmarks to track success.
However, it’s important to note that the choice of KPIs will vary depending on factors such as your business, industry, niche, and more.
Now if you feel overwhelmed by all of this, there’s a solution that simplifies the process and provides you with actionable clean data.
Enter Putler! This advanced analytics platform is designed to streamline your eCommerce revenue tracking.
With Putler’s powerful eCommerce metrics dashboard, you can
- Gain in-depth insights into your revenue data and monitor key metrics – sales, revenue, and customer lifetime value (CLTV).
- Efficiently track eCommerce revenue and make informed decisions based on real-time data to drive growth.
- Analyze revenue trends, identify top-selling products, and track the effectiveness of marketing campaigns.
- Monitor and measure eCommerce revenue, and set realistic benchmarks to track your success over time.
Putler serves as a centralized hub, offering a comprehensive overview of your business performance.
Now that you’ve set your business goals and KPIs, it’s time to take charge and stay ahead!
Gather all your eCommerce KPI data in one place. Keep them in check and update them like a boss!
Remember, you’re not just a business owner—you’re a KPI conqueror. Let your data be the secret sauce propelling you to eCommerce stardom.
And if you ever need a helping hand in your KPI conquest, Putler is here. With its powerful insights and analytics, Putler supercharges your eCommerce journey.
Embrace the power of data, harness the insights, and seize the opportunities that lie ahead.
Here’s to a future fueled by data and endless possibilities! The sky’s the limit!