Key KPI For Ecommerce

Admin October 18, 2024 321
How to Use KPIs

Focusing on these KPIs will help you build a thriving online business:

1️⃣ Conversion Rate: The percentage of visitors who complete a purchase. Even small improvements here can have a massive impact on revenue.

2️⃣ Average Order Value (AOV): This measures the average amount spent per order. Boosting AOV through upsells, bundles, and cross-sells increases profitability without needing more customers.

3️⃣ Customer Acquisition Cost (CAC): Understanding how much it costs to acquire a new customer is crucial for sustainable growth. If your CAC is too high, it can eat into your profits.

4️⃣ Customer Lifetime Value (CLTV): Focus on retention and loyalty programs to increase how much a customer spends over time. A high CLTV means more ROI from your acquisition efforts.

5️⃣ Cart Abandonment Rate: A low cart abandonment rate indicates a smooth checkout process. Use retargeting campaigns and email follow-ups to recover lost sales.

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