Key Performance Indicators (KPIs) are measurements used to evaluate the success of a business. Here are five important KPIs for e-commerce:
- Conversion rate: This KPI measures the percentage of visitors to your e-commerce site who make a purchase. A higher conversion rate indicates that your site is effectively converting visitors into paying customers.
- Customer Lifetime Value (CLV): This KPI measures the total amount of revenue a customer will generate for your business over their lifetime. By increasing CLV, you can maximize revenue and profitability.
- Average Order Value (AOV): This KPI measures the average amount of money a customer spends per transaction on your e-commerce site. By increasing AOV, you can maximize revenue and profitability.
- Cart Abandonment Rate: This KPI measures the percentage of customers who add items to their cart but don’t complete the checkout process. A high cart abandonment rate indicates that there may be issues with your checkout process or other factors that are preventing customers from completing their purchases.
- Traffic sources: This KPI measures where your e-commerce site’s traffic is coming from. Understanding which sources are driving the most traffic can help you optimize your marketing efforts and increase visibility to potential customers.