Top 10 E-commerce Metriccs and KPIs

Gain an edge in the e-commerce landscape with our handpicked selection of the top 10 Key Performance Indicators (KPIs) for online businesses. From conversion rate and customer acquisition cost to average order value and customer lifetime value, these indispensable metrics provide valuable insights to optimize your e-commerce strategies. Join us as we delve into the vital KPIs that fuel e-commerce success, empowering you to skyrocket sales, elevate customer experience, and propel your online business to remarkable achievements in the ever-evolving digital world.

Benefits of using E-commerce metrics and KPIs

Using e-commerce Key Performance Indicators (KPIs) and success metrics provides numerous advantages that drive business growth and enhance online performance.

• Data-driven Decision-making: Leverage e-commerce KPIs and metrics for informed strategic choices based on accurate data analysis.
• Performance Evaluation: Assess the effectiveness of e-commerce initiatives and identify areas for improvement.
• Goal Alignment: Align e-commerce metrics with broader business objectives to foster organizational alignment.
• Continuous Improvement: Monitor metrics, identify trends, and implement iterative improvements for enhanced online performance.
• Customer-centric Focus: Understand customer behavior, preferences, and satisfaction levels to tailor strategies and improve the customer experience.

By harnessing the power of these metrics, businesses can optimise their e-commerce operations and gain a competitive edge.

Top 10 KPIs and metric for E-commerce

#1 Conversion Rate

Description: Conversion Rate measures the percentage of website visitors who complete a desired action, such as making a purchase. It helps assess the effectiveness of the website and marketing strategies in converting visitors into customers.

How to get this KPI:

• Google Analytics
• Kissmetrics
• Mixpanel
• Hotjar
• Optimizely

#2 Average Order Value (AOV)

Description: Average Order Value (AOV) calculates the average amount spent by customers per order. It helps assess customer purchasing behavior and the overall value generated per transaction.

How to get this KPI:

• Google Analytics
• Kissmetrics
• Metrilo
• Glew
• Shopify Analytics

#3 Customer Lifetime Value (CLTV)

Description: Customer Lifetime Value (CLTV) measures the total value a customer brings to the business over their entire relationship. It helps assess customer loyalty and the long-term revenue potential of each customer.

How to get this KPI:

• Kissmetrics
• Metrilo
• Glew
• Retention Science
• Yotpo

#4 Cart Abandonment Rate

Description: Cart Abandonment Rate measures the percentage of users who add products to their cart but do not complete the purchase. It helps identify barriers in the checkout process and improve conversion rates.

How to get this KPI:

• Google Analytics
• Kissmetrics
• VWO
• OptinMonster
• BigCommerce Analytics

#5 Return on Advertising Spend (ROAS)

Description: Return on Advertising Spend (ROAS) measures the revenue generated for every dollar spent on advertising campaigns. It helps assess the effectiveness and profitability of advertising efforts.

How to get this KPI:

• Google Ads
• Facebook Ads Manager
• AdRoll
• Criteo
• Marin Software

#6 Customer Acquisition Cost (CAC)

Description: Customer Acquisition Cost (CAC) calculates the average cost to acquire a new customer. It helps assess the efficiency and effectiveness of marketing and advertising campaigns.

How to get this KPI:

• Google Analytics
• Kissmetrics
• Glew
• HubSpot
• AdRoll

#7 Churn Rate

Description: Churn Rate measures the percentage of customers who stop purchasing from the e-commerce store within a given time period. It helps assess customer retention and loyalty.

How to get this KPI:

• Kissmetrics
• Metrilo
• Glew
• ReCharge
• Shopify Analytics

#8 Average Page Load Time

Description: Average Page Load Time measures the average time it takes for a web page to load. It helps assess website performance and user experience.

How to get this KPI:

• Google PageSpeed Insights
• Pingdom
• GTmetrix
• New Relic
• Uptrends

#9 Abandoned Cart Recovery Rate

Description: Abandoned Cart Recovery Rate measures the percentage of abandoned carts that are successfully recovered and converted into completed purchases. It helps assess the effectiveness of cart recovery strategies.

How to get this KPI:

• Klaviyo
• Rejoiner
• Omnisend
• HubSpot
• Mailchimp

#10 Repeat Purchase Rate

Description: Repeat Purchase Rate measures the percentage of customers who make more than one purchase within a specified time period. It helps assess customer loyalty and the effectiveness of retention strategies.

How to get this KPI:

• Google Analytics
• Kissmetrics
• Glew
• Metrilo
• Shopify Analytics

How to use E-commerce metrics with OKRs

To maximize the impact of E-commerce initiatives and drive organizational success, it is essential to combine E-commerce KPIs with Objectives and Key Results (OKRs). While OKRs provide a framework for setting ambitious goals and outlining desired outcomes, E-commerce KPIs offer the necessary metrics to track progress and evaluate performance.

Here's how to effectively integrate E-commerce KPIs with OKRs:

1. Align E-commerce KPIs with OKRs: Select measurable KPIs that directly contribute to achieving the desired outcomes outlined in the OKRs.
2. Set ambitious targets: Establish specific and challenging targets for each KPI to drive continuous improvement aligned with OKRs.
3. Monitor and track progress: Regularly monitor and track the performance of KPIs in relation to the corresponding OKRs.
4. Analyze and evaluate results: Analyze the data collected from KPIs to evaluate the effectiveness of initiatives in achieving OKR outcomes.
5. Make data-driven adjustments: Utilize insights from KPIs and OKR progress to optimize strategies, resource allocation, and interventions for better alignment and progress towards organizational goals.

Best tools to track OKRs with KPIs:

• Tability
• Google Sheet
• Quantive