Everyone wants to know the status of their business. Make sure your website is working.

Is it possible? Yes!

Key performance indicators (or ) can help you get a better idea of how your website is performing.

What are Ecommerce Metrics & KPIs?

There are very few to no differences between metrics and KPIs. According to Investopedia

They’re used by executives (metrics) to analyze corporate finances, operational strategies, and financial performance. Project managers consider them essential in managing strategic projects. 

Okay, but what are KPIs? To determine the value of a specific KPI, you will need more than one metric.

It is important to know the conversion rates for your website. This is one of the most important KPIs. This is the most important KPI.

12 Ecommerce KPIs to help you increase your sales

You may be wondering which KPIs are most important to increase your sales. KPIs can be customized to meet your specific needs.

1. Shopping Cart Abandonment Rate

This KPI allows you to determine if checkout is simple or difficult. Customers who find checkout difficult will abandon their cart.

It’s calculated by multiplying the number of successful transactions by the number of shopping carts and then multiplying by 100 to get your abandonment rate. 

Ecommerce websites lose $18 million in sales because of cart abandonment. Email them differently to prevent this from happening.

2. Conversion Rate

As we discussed, this KPI is available. For better conversion rates, optimization is a common industry practice.

3. Cost of Customer Acquisition (CAC).

Marketers pay to advertise their products to increase sales. You can adjust your marketing campaigns to lower costs.

The CAC formula can be simplified. Divide your marketing expenses by the number of new customers you obtain.

4. Customer Lifetime Value (CLV),

Knowing how much profit your customer brings to you is crucial. 

This formula calculates KPI’s value using the following formula: Customer’s Annual Profit Contribution x Average Years as a Customer – Initial CAC.

If your customer gives $100 for four years to your company, and CAC equals 2, CLV would equal $398.

5. Repeat Purchase Rate (RPR).

This measure shows how loyal your customers are. 

Here’s how the calculation formula works: Total purchases / Purchases from Repeat Customers

6. Churn Rate

Customers are always customers. To find out how many customers are leaving your company, you can look at the churn rates. 

First, subtract the number of days left in the month from the beginning. Next, multiply the remaining by 100. That is your monthly rate for churn.

100 customers are at the beginning of each month. 75 customers end of each month. Add 12 to this rate and you will get the annual rate. 75/100 

7. Average Order Value (AOV).

AOV is, as the name implies, the average amount of money that a customer spends on an order. It’s calculated by multiplying total revenues by total orders.

8. Pageviews per Session

A session refers to the time customers spend on your website.  It is possible to view more pages than you need to in a session. 

You don’t need to be complicated if you are just looking to purchase an item. 

This KPI formula works well. Total Pageviews divided by Total Visitors.

9. Bounce Rate

Some people don’t like to see more than one page. You want to make sure that your visitors don’t get bored. 

The rate can easily be calculated by multiplying total bounces by total visitors. 

10. Email open rate

This is simply how many people have opened your email. You can also use it to increase open rates and prevent spam filters.

This formula works like this: A total number of unique emails opened / Number of successfully sent emails.

11. Email click-Through Rates. (CTR).

Emails are not empty. Emails can contain multiple links.

To measure the success of your campaign, divide the Total Number of Individuals Clicks by the Total Number of Email Opens.

12. Email Conversion Rate

Determine the success of your campaign by looking at Email conversion rates This conversion rate is nearly the same as the domain.

The conversion rate is easy to calculate. Divide the number of successful conversions by 100. Multiply this number by 100. Voila!

KPIs can help to understand the success of your website and your marketing campaigns. 

Therefore, it is not surprising to say that you must maintain the KPIs at a desired level.

You will need to use different strategies to ensure that your website is performing at the best possible rate. Popups can be easily imported when you are in need.

Humorous subject lines are a great way to get emails opened