ecommerce-kpi
Most businesses are data rich, but information poor.
https://www.cloudways.com/blog/ecommerce-kpis/
#Ecommerce KPIs
- Average Order Value (AOV)
Also known as the Average Market Basket, the AOV lets you know how much your customers typically spend on one single order.
AOV = Total Revenue/Number of order
- Gross Profit
It is an important ecommerce KPI and helps entrepreneurs to plan ahead.
Gross Profit = Total Cost of Goods Sold – Total Number of sales.
- Conversion Rate (CR)
CR is the percentage that identifies at what rate people are purchasing your products.
Conversion Rate = (Total Number of Visitors on the Website / Total Number of Conversions) x 100
- Shopping Cart Abandonment Rate (CAR)
This ecommerce KPI tells you how many visitors are adding products to the shopping cart but are not checking out or purchasing them. Reduce friction in the checkout process to improve this number.
CAR = (Total Number of Completed Transactions / Total Number of Shopping Carts) x 100
- Shopping Cart Conversion Rate (CCR)
This ecommerce KPI measures how many visitors actually complete the checkout process by purchasing the products.
CCR = (Total Conversions / Total Number of Visitors) x 100
- Cost of Goods Sold (COGS)Cost of Goods Sold (COGS)
It’s the amount you’re spending to sell your product. For example, manufacturing costs, employee wages, overhead costs, etc.
COGS = Beginning Inventory Costs (of the year) + Additional Inventory Costs (purchased during the year) – Ending Inventory (at the end of the year)
- Customer Lifetime Value (CLV)
It tells you the worth of each customer to your business. Strengthen relationships by focusing on customer loyalty to improve this number. It will help you understand your cost per acquisition.
CLV = (Customer’s Annual Profit Contribution x Average Number of Year as Customer) – the Initial Cost of Customer Acquisition
- Churn Rate
For an online business, the churn rate lets you know at what pace your customers are leaving your brand or canceling subscriptions.
Formula: Begin by subtracting the total number of customers remaining at the end of the month from the number of customers at the beginning of that month and divide by the total number of customers at the beginning of the month. Multiply by 100 for its percentage and further, multiply it by twelve to get the annual churn rate.
- Customer Acquisition Cost (CAC)
This ecommerce KPI tells you how much you’re spending to acquire a new customer. You can measure it by analyzing your marketing spend and how it breaks down per customer.
CAC = Costs Spent on Acquiring Customers / Number of Customers Acquired
- Repeat Purchase Rate (RPR)
It tells you the number of customers that return to your website in order to make another purchase. It can help you measure customer loyalty as well as you can plan your sales strategies.
RPR = Purchases from Repeat Customers / Total Purchase
- Average Profit Margin
It is the percentage which represents your profit margin over a specific period of time.
Average Profit Margin = Gross Profit / Revenue
- Revenue Per Click (RPC)
It’s simply the average revenue for each click on all of your pay-per-click campaigns. It allocates a value to every paid click.