Customer Lifetime Value (CLV)
Simply seeing your client base as one big sale is one of the worst marketing errors you can make. The CLV metric employs a comprehensive strategy. It looks at clients from the perspective of how much money they will generate for your business over the life of your engagement with them. Add the average order value, average buy frequency rate, and average customer lifetime together to get the CLV.
Customer Retention Rate (CRR)
If you’re losing consumers nearly as rapidly as you’re gaining them, your goods or customer connection strategy is critically flawed. Because it is significantly less expensive to keep pleased customers than it is to acquire new ones, repeat customers are the lifeblood of e-commerce firms.
The CRR eCommerce indicator measures your capacity to retain clients after you’ve attracted them. Subtract the total number of customers at the end of a period from the total number of customers throughout that time to determine the CRR. Multiply the outcome by the number of clients you had at the start of the time period. It is important not to undervalue this indicator since it is directly tied to client loyalty and satisfaction.
Customer Acquisition Cost (CAC)
The entire amount you generally pay to acquire a new client is known as your customer acquisition cost. Because many new businesses begin with considerable sales and marketing expenses to get new leads, a very low proportion of prospects will convert, resulting in a very high CAC. This measure is also often referred to as the “startup killer.” This measure is determined by dividing your overall sales and marketing expenses for a certain time period by the quantity of brand-new clients you attracted during that time. Which marketing and sales expenses are taken into account? they are all.
The proportion of visitors to a certain website that leaves after reading only one page is known as the bounce rate, which is closely connected to the cart abandonment rate. With a 45.7 percent average bounce rate, e-commerce has a pretty high bounce rate. If your website has an exceptionally high bounce rate, this might be a sign that a number of major user experience issues are present.
The total number of one-page visits divided by the total number of website entries yields the bounce rate. There is no justification for you to ignore this crucial measure because Google Analytics makes it simple for you to monitor the bounce rate.
Conversion Rate (CR)
Your e-commerce company probably already tracks conversion rate in some way on its website, but it’s crucial to emphasize the importance of doing so and how it eventually ties to the other metrics on this list. Simply dividing the number of conversions (those who completed the action you intended them to do) by the total number of visitors who had the option to complete the action yields the conversion rate.
Shopping cart abandonment rate
No matter how popular your items are or how great your conversion rate is, some customers will still choose not to finish their transaction. When a consumer adds a product to their online shopping cart but doesn’t finish the checkout process, they are basically leaving those things behind. This is known as “shopping cart abandonment.”
Despite how awful it is, e-commerce must still include it. However, you should continue to monitor your total cart abandonment percentage since it might alert you to possible issues with checkout.