How To Measure Ecommerce Success

Author

Kevin Urrutia

Category

Marketing

Posted

January 27, 2023

There are several key metrics that can be used to measure the success of an ecommerce business, including:

  1. Revenue: The total amount of money generated by the business through sales.
  2. Gross margin: The difference between revenue and cost of goods sold (COGS), expressed as a percentage of revenue.
  3. Customer acquisition cost (CAC): The cost of acquiring a new customer, including marketing and advertising expenses.
  4. Lifetime value (LTV) of a customer: The total amount of money a customer is expected to spend on the business over the course of their lifetime.
  5. Conversion rate: The percentage of visitors to the website who make a purchase.
  6. Average order value (AOV): The average dollar amount of each order placed on the website.
  7. Return on investment (ROI): The return on investment of a marketing campaign.
  8. Net Promoter Score (NPS): A customer loyalty metric that measures how likely customers are to recommend a business to others.
  9. Customer retention rate: The percentage of customers who continue to purchase from the business over time.
  10. Traffic: The number of visitors to the website.

By regularly tracking these metrics, businesses can gain insight into the health of their ecommerce operation and make data-driven decisions to improve their performance.

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