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Ecommerce performance metrics & KPIs you must track
Whatever your traffic source is, tracking metrics that tell you about your store’s performance and optimizing them should be your ultimate goal.
Let’s see what key metrics and KPIs you can’t ignore.
Cost per acquisition is the total cost you spend on acquiring a new customer.
This can be calculated with a simple formula:
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Here’s an example of how to calculate CPA:
In November, Jack invested $10,000 in marketing for his online shoe store. He was able to acquire 500 new customers.
Jack’s CPA will be $10000/500 = $20.
This means that Jack spent 20 dollars to acquire one customer in November.
Note: To have a profitable ecommerce store, the average order value should always be greater than the cost per acquisition. Simply put, you shouldn’t pay more to get a customer than what they spend on your store.
Cart abandonment rate
The cart abandonment rate is the percentage of people who have visited your store and added a product to their shopping cart but didn’t buy it for some reason.