The best eCommerce business owner is always fond of analysis and metrics because this helps their business grow faster. It is very important to use the right metrics which represent the exact state of your business and can be turned into valuable insights.

Here we list the most valuable eCommerce metrics which will help business owners to flourish their business successfully.

Sales Conversion Rate

The conversion rate measures the percentage of visitors who make a purchase from the website. Simply calculated, it’s total purchases divided by total customer visits. There are a lot of analytical tools to measure the conversion rate. According to most market researches, a normal conversion rate for online stores is between one and five %.

Average Order Value

To count your average order value (or average value of each purchase) divide the total value of all sales by the number of carts. Definitely, you want your customers to spend as much as possible.

Revenue Per Visitor

This indicator measures the revenue from each unique visitor who enters your store. It’s a composite of two commonly used metrics, conversion rate and average order value. To calculate revenue per visitor, simply divide the total revenue earned during a determined time period by the number of visitors during the same period.

Shopping Cart Abandonment Rate

This is the percentage of shoppers who add items to their shopping cart, but then leave the online store without making a purchase. Nearly 70% of shoppers abandon their carts, it’s important to lower your abandonment rate as much as possible. For reducing your cart abandonment rate you can simplify your checkout process; use remarketing to bring would-be customers back to your store; send cart abandonment emails.

Customer Lifetime Value

Your customer lifetime value is a metric of the total you earn from a typical customer over the period they buy from your website. To calculate customer lifetime value you need to calculate average purchase value, and then multiply that number by the average purchase frequency rate to determine customer value. The best way to increase the CLV is building long-term relationships with your customers so they become repeat buyers.

Customer Acquisition Cost

You always spend some money to acquire a new customer. This value is called your customer acquisition cost. In order to make money, your customer acquisition cost needs to be less than your customer lifetime value.  

Revenue by Traffic Source

Make sure you understand how much traffic comes from each source. Some sources send visitors who are more likely to become your customers. It’s important to stop spending money on sources that don’t fit your business.

eCommerce business owners should pay attention to these metrics to accurately measure changes happening with an online store and make the best decisions for your business.