{"id":2444,"date":"2021-09-18T07:40:39","date_gmt":"2021-09-18T07:40:39","guid":{"rendered":"https:\/\/phelixinfosolutions.com\/blog\/?p=2444"},"modified":"2023-03-01T09:51:48","modified_gmt":"2023-03-01T09:51:48","slug":"11-essential-ecommerce-metrics-kpis-to-track-and-measure-in-2021","status":"publish","type":"post","link":"https:\/\/phelixinfosolutions.com\/blog\/11-essential-ecommerce-metrics-kpis-to-track-and-measure-in-2021\/","title":{"rendered":"11 Essential Ecommerce Metrics &#038; KPIs To Track And Measure In 2021"},"content":{"rendered":"<div class=\"47de946b8831610645f1873afb8597bb\" data-index=\"4\" style=\"float: none; margin:10px 0 10px 0; text-align:center;\">\n<script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-0205282431111794\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<!-- 2024 Vertical -->\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-client=\"ca-pub-0205282431111794\"\r\n     data-ad-slot=\"3037936695\"\r\n     data-ad-format=\"auto\"\r\n     data-full-width-responsive=\"true\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script>\n<\/div>\n<p>Metrics&#8230; Not the first time we\u2019re hearing this word!<\/p>\n<p>Everyone around us needs them. Either it\u2019s a high school science teacher, a football coach\u2026or even an <a href=\"https:\/\/phelixinfosolutions.com\/blog\/how-cross-promotion-can-beef-up-your-online-business\/\">online business<\/a>. Metrics are important to measure performance.<\/p>\n<p>Unlike physical businesses, online businesses offer greater visibility of customers\u2019 behaviors and actions. For instance, can you tell how many people see your ad banner on the street? Or how many people come to your shop after seeing a newspaper ad?<\/p>\n<p>Nope, you can\u2019t!<\/p>\n<p>But you can tell how many people visit your website after clicking an ad. Or how many people engage with your social media posts.<\/p>\n<p>Isn\u2019t it great? In an online world, you can track everything that happens on your website. Thanks to the eCommerce metrics and KPIs.<\/p>\n<p>With the help of these metrics, you can understand the performance of your website. And if needed, you can tweak changes to the areas that show weaker performance.<\/p>\n<p>In today\u2019s post, I will talk about 11 essential eCommerce metrics and KPIs that you need to track in 2021.<\/p>\n<p>Before moving forward, let\u2019s define the terms metrics, KPIs, and the difference between the two.<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_69_1 counter-hierarchy ez-toc-counter ez-toc-white ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69e7503b3b3cc\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69e7503b3b3cc\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/phelixinfosolutions.com\/blog\/11-essential-ecommerce-metrics-kpis-to-track-and-measure-in-2021\/#What_Is_A_Metric\" title=\"What Is A Metric?\">What Is A Metric?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/phelixinfosolutions.com\/blog\/11-essential-ecommerce-metrics-kpis-to-track-and-measure-in-2021\/#What_Is_A_KPI\" title=\"What Is A KPI?\">What Is A KPI?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/phelixinfosolutions.com\/blog\/11-essential-ecommerce-metrics-kpis-to-track-and-measure-in-2021\/#Whats_The_Difference_Between_A_Metric_And_An_Ecommerce_KPI\" title=\"What\u2019s The Difference Between A Metric And An Ecommerce KPI?\">What\u2019s The Difference Between A Metric And An Ecommerce KPI?<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/phelixinfosolutions.com\/blog\/11-essential-ecommerce-metrics-kpis-to-track-and-measure-in-2021\/#Why_eCommerce_KPIs_And_Metrics_Are_Important_For_Your_Business\" title=\"Why eCommerce KPIs And Metrics Are Important For Your Business?\">Why eCommerce KPIs And Metrics Are Important For Your Business?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/phelixinfosolutions.com\/blog\/11-essential-ecommerce-metrics-kpis-to-track-and-measure-in-2021\/#11_Essential_Ecommerce_Metrics_KPIs_To_Track_In_2021\" title=\"11 Essential Ecommerce Metrics &amp; KPIs To Track In 2021\">11 Essential Ecommerce Metrics &amp; KPIs To Track In 2021<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/phelixinfosolutions.com\/blog\/11-essential-ecommerce-metrics-kpis-to-track-and-measure-in-2021\/#Product_Discovery_Metrics\" title=\"Product Discovery Metrics\">Product Discovery Metrics<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/phelixinfosolutions.com\/blog\/11-essential-ecommerce-metrics-kpis-to-track-and-measure-in-2021\/#Impressions\" title=\"Impressions\">Impressions<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/phelixinfosolutions.com\/blog\/11-essential-ecommerce-metrics-kpis-to-track-and-measure-in-2021\/#Reach\" title=\"Reach\">Reach<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/phelixinfosolutions.com\/blog\/11-essential-ecommerce-metrics-kpis-to-track-and-measure-in-2021\/#Engagement\" title=\"Engagement\">Engagement<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/phelixinfosolutions.com\/blog\/11-essential-ecommerce-metrics-kpis-to-track-and-measure-in-2021\/#Acquisition_Metrics\" title=\"Acquisition Metrics\">Acquisition Metrics<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/phelixinfosolutions.com\/blog\/11-essential-ecommerce-metrics-kpis-to-track-and-measure-in-2021\/#Email_Click-Through\" title=\"Email Click-Through\">Email Click-Through<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/phelixinfosolutions.com\/blog\/11-essential-ecommerce-metrics-kpis-to-track-and-measure-in-2021\/#Cost_Per_Acquisition\" title=\"Cost Per Acquisition\">Cost Per Acquisition<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/phelixinfosolutions.com\/blog\/11-essential-ecommerce-metrics-kpis-to-track-and-measure-in-2021\/#Cost_Of_Conversion_Acquisition_%C3%B7_Number_Of_Conversions\" title=\"Cost Of Conversion Acquisition \u00f7 Number Of Conversions\">Cost Of Conversion Acquisition \u00f7 Number Of Conversions<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/phelixinfosolutions.com\/blog\/11-essential-ecommerce-metrics-kpis-to-track-and-measure-in-2021\/#Social_Media_Engagement\" title=\"Social Media Engagement\">Social Media Engagement<\/a><ul class='ez-toc-list-level-5' ><li class='ez-toc-heading-level-5'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/phelixinfosolutions.com\/blog\/11-essential-ecommerce-metrics-kpis-to-track-and-measure-in-2021\/#Likes_per_Post\" title=\"Likes per Post\">Likes per Post<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-5'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/phelixinfosolutions.com\/blog\/11-essential-ecommerce-metrics-kpis-to-track-and-measure-in-2021\/#Comments_per_Post\" title=\"Comments per Post\">Comments per Post<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-5'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/phelixinfosolutions.com\/blog\/11-essential-ecommerce-metrics-kpis-to-track-and-measure-in-2021\/#Shares_per_Post\" title=\"Shares per Post\">Shares per Post<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-5'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/phelixinfosolutions.com\/blog\/11-essential-ecommerce-metrics-kpis-to-track-and-measure-in-2021\/#Clicks_per_Post\" title=\"Clicks per Post\">Clicks per Post<\/a><\/li><\/ul><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/phelixinfosolutions.com\/blog\/11-essential-ecommerce-metrics-kpis-to-track-and-measure-in-2021\/#Conversion_Metrics\" title=\"Conversion Metrics\">Conversion Metrics<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/phelixinfosolutions.com\/blog\/11-essential-ecommerce-metrics-kpis-to-track-and-measure-in-2021\/#Shopping_Cart_Abandonment_Rate\" title=\"Shopping Cart Abandonment Rate\">Shopping Cart Abandonment Rate<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/phelixinfosolutions.com\/blog\/11-essential-ecommerce-metrics-kpis-to-track-and-measure-in-2021\/#Checkout_Abandonment\" title=\"Checkout Abandonment\">Checkout Abandonment<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/phelixinfosolutions.com\/blog\/11-essential-ecommerce-metrics-kpis-to-track-and-measure-in-2021\/#Average_Order_Value\" title=\"Average Order Value\">Average Order Value<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/phelixinfosolutions.com\/blog\/11-essential-ecommerce-metrics-kpis-to-track-and-measure-in-2021\/#Sales_Conversion_Rates\" title=\"Sales Conversion Rates\">Sales Conversion Rates<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-24\" href=\"https:\/\/phelixinfosolutions.com\/blog\/11-essential-ecommerce-metrics-kpis-to-track-and-measure-in-2021\/#Retention_Metric\" title=\"Retention Metric\">Retention Metric<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-25\" href=\"https:\/\/phelixinfosolutions.com\/blog\/11-essential-ecommerce-metrics-kpis-to-track-and-measure-in-2021\/#Customer_Lifetime_Value\" title=\"Customer Lifetime Value\">Customer Lifetime Value<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"What_Is_A_Metric\"><\/span>What Is A Metric?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>A metric is a quantitative measurement of a website\u2019s performance. For example, eCommerce metrics range from website visitors to average order value. From traffic sources to cart abandonment.<\/p>\n<p>There are a lot of eCommerce metrics to track and measure a website\u2019s performance. <a href=\"https:\/\/phelixinfosolutions.com\/blog\/google-analytics-goals\/\">Google Analytics<\/a>, homepages, and checkout pages provide rich data for measuring the metrics.<\/p>\n<p>Now, let\u2019s talk about\u2026<\/p>\n<h2><span class=\"ez-toc-section\" id=\"What_Is_A_KPI\"><\/span>What Is A KPI?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Key <a href=\"https:\/\/en.wikipedia.org\/wiki\/Performance_indicator\" target=\"_blank\" rel=\"nofollow noopener\">performance indicator<\/a> (<em>KPI<\/em>) is an <strong><em>important <\/em><\/strong>metric. KPIs are the numbers that businesses track for growth.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Whats_The_Difference_Between_A_Metric_And_An_Ecommerce_KPI\"><\/span>What\u2019s The Difference Between A Metric And An Ecommerce KPI?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Many businesses use the terms metric and KPI interchangeably. But they aren\u2019t the same.<\/p>\n<p>Metrics measure processes. In contrast, KPIs track how well those processes are performing. KPIs are subjective for businesses. Each business sets specific targets it wants to achieve.<\/p>\n<p>So let\u2019s say the points earned in a game is a metric. And 40 points earned would be a KPI.<\/p>\n<p>In the case of online business, site visitors are a metric. But \u2018<strong><em>how many visitors?\u2019<\/em><\/strong> is your KPI.<\/p>\n<p>Another example is, the average order value is a metric but not a KPI. But if I set my AOV\u2019s target at $50, it is a KPI.<\/p>\n<p>Remember&#8230;<\/p>\n<p><strong><em>All KPIs are metrics. But all metrics are not KPIs.<\/em><\/strong><\/p>\n<p>Now that you know the difference between the two, you&#8217;re probably wondering&#8230;<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Why_eCommerce_KPIs_And_Metrics_Are_Important_For_Your_Business\"><\/span>Why eCommerce KPIs And Metrics Are Important For Your Business?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><img fetchpriority=\"high\" decoding=\"async\" class=\"size-full wp-image-2447 aligncenter\" src=\"https:\/\/phelixinfosolutions.com\/blog\/wp-content\/uploads\/2021\/09\/Why-eCommerce-KPIs-And-Metrics-Are-Important-For-Your-Business.png\" alt=\"Why eCommerce KPIs And Metrics Are Important For Your Business\" width=\"1200\" height=\"628\" srcset=\"https:\/\/phelixinfosolutions.com\/blog\/wp-content\/uploads\/2021\/09\/Why-eCommerce-KPIs-And-Metrics-Are-Important-For-Your-Business.png 1200w, https:\/\/phelixinfosolutions.com\/blog\/wp-content\/uploads\/2021\/09\/Why-eCommerce-KPIs-And-Metrics-Are-Important-For-Your-Business-300x157.png 300w, https:\/\/phelixinfosolutions.com\/blog\/wp-content\/uploads\/2021\/09\/Why-eCommerce-KPIs-And-Metrics-Are-Important-For-Your-Business-1024x536.png 1024w, https:\/\/phelixinfosolutions.com\/blog\/wp-content\/uploads\/2021\/09\/Why-eCommerce-KPIs-And-Metrics-Are-Important-For-Your-Business-768x402.png 768w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" \/><\/p>\n<p>eCommerce KPIs enable businesses to make rational decisions pertaining to different areas. Such as marketing, sales, customer experience, and other important areas.<\/p>\n<p>With KPIs&#8217; help, you can understand which strategies work for your business and which don\u2019t. It also gives you an insight into the weaker areas of your business. Once you know which areas need some tweaks, you can focus on them.<\/p>\n<p>eCommerce metrics enable you to make informed and timely business decisions. And by doing so, you will <a href=\"https:\/\/phelixinfosolutions.com\/blog\/make-your-business-touch-the-sky-with-these-5-digital-marketing-tips\/\">drive your business towards success<\/a> and win more customers.<\/p>\n<p>And that&#8217;s the importance of <a href=\"https:\/\/www.profit.co\/blog\/kpi-library\/kpis-vs-metrics-how-are-they-different-how-do-they-work\/\">KPIs and Metrics<\/a> for your business.<\/p>\n<p>Now, let&#8217;s discuss the&#8230;<\/p>\n<h2><span class=\"ez-toc-section\" id=\"11_Essential_Ecommerce_Metrics_KPIs_To_Track_In_2021\"><\/span>11 Essential Ecommerce Metrics &amp; KPIs To Track In 2021<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The following are some of the most common KPIs and metrics that businesses track. The tracking of these KPIs will allow you to make better business decisions in 2021:<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Product_Discovery_Metrics\"><\/span>Product Discovery Metrics<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ol>\n<li>\n<h4><span class=\"ez-toc-section\" id=\"Impressions\"><\/span><strong> Impressions<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/li>\n<\/ol>\n<p>The number of times an ad or content is presented to a person is known as impressions. These impressions can happen anywhere. They can occur through paid ads, <a href=\"https:\/\/phelixinfosolutions.com\/blog\/what-should-you-watch-out-for-with-seo-in-the-2021\/\">search results<\/a>, or <a href=\"https:\/\/phelixinfosolutions.com\/blog\/10-essential-social-media-marketing-trends\/\">social media marketing<\/a>. Like I said, <em>anywhere<\/em>.<\/p>\n<p>Now, remember, <strong>impressions do not mean CLICKS. <\/strong>Suppose 1000 people view your social media post, its impressions, and not the clicks.<\/p>\n<p>Impressions are the most controllable metric in this list. You can increase or decrease them according to your budget. For example, you can run more paid ads to increase the impressions.<\/p>\n<ol start=\"2\">\n<li>\n<h4><span class=\"ez-toc-section\" id=\"Reach\"><\/span>Reach<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/li>\n<\/ol>\n<p>Reach is your total number of followers and subscribers. Or we can say the total number of people who see your content. This includes your social media followers, newsletter subscribers, and loyalty program subscribers.<\/p>\n<p>Consistent marketing, promoting newsletters, and loyalty subscriptions can improve your reach.<\/p>\n<ol start=\"3\">\n<li>\n<h4><span class=\"ez-toc-section\" id=\"Engagement\"><\/span>Engagement<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/li>\n<\/ol>\n<p>The intersection of your impressions and your reach results in engagement.<\/p>\n<p>It measures how many followers\/ subscribers (<em>reach<\/em>) are engaging with your content (<em>impressions<\/em>).<\/p>\n<p>Engagement includes both acquisition and non-acquisition-related activities. For instance, activities like click-through are acquisition-related. While likes, comments, and shares are non-acquisition-related activities.<\/p>\n<p>To boost your engagement, you need to promote your brand on different platforms.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Acquisition_Metrics\"><\/span>Acquisition Metrics<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ol start=\"4\">\n<li>\n<h4><span class=\"ez-toc-section\" id=\"Email_Click-Through\"><\/span><strong> Email Click-Through<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/li>\n<\/ol>\n<p>Email click-through rates measure how many subscribers open emails and visit your website.<\/p>\n<p>To calculate email CTR percentage:<\/p>\n<p>Divide the total number of people who clicked the email by the total number of delivered emails. Multiply the quotient by 100 to express your answer in percentage.<\/p>\n<p><strong>(No. of people who clicked <em>\u00f7<\/em> No. of emails delivered) X 100<\/strong><\/p>\n<p>Your average email click-through rate should be 2.5%. If it\u2019s lower than that, you need to identify the problems in your emails. Create engaging and mobile responsive emails. Don\u2019t forget to add compelling subject lines and CTAs to improve the click-through rate.<\/p>\n<ol start=\"5\">\n<li>\n<h4><span class=\"ez-toc-section\" id=\"Cost_Per_Acquisition\"><\/span>Cost Per Acquisition<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/li>\n<\/ol>\n<p>Cost per acquisition is helpful to know how much you are spending to get new customers.<\/p>\n<p>CPAs help the business owner not to overspend on a campaign that attracts few customers. Marketing is an important part of every business. A business owner invests in paid ads, social media marketing, and other channels.<\/p>\n<p>The aim of marketing is to drive traffic and ultimately boost sales. But, if the marketing cost is higher than the total revenue, it shows the wastage of the marketing budget.<\/p>\n<p>If you want to have a higher CPA rate, you should know <a href=\"https:\/\/www.optimum7.com\/blog\/surge-session\/ultimate-guide-to-managing-adwords-for-ecommerce.html\" target=\"_blank\" rel=\"nofollow noopener\">how to manage AdWords for eCommerce<\/a> even if you outsource this service.<\/p>\n<p>To calculate CPA:<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Cost_Of_Conversion_Acquisition_%C3%B7_Number_Of_Conversions\"><\/span>Cost Of Conversion Acquisition <em>\u00f7<\/em> Number Of Conversions<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><img decoding=\"async\" class=\"size-full wp-image-2448 aligncenter\" src=\"https:\/\/phelixinfosolutions.com\/blog\/wp-content\/uploads\/2021\/09\/image005.png\" alt=\"image005\" width=\"1200\" height=\"628\" srcset=\"https:\/\/phelixinfosolutions.com\/blog\/wp-content\/uploads\/2021\/09\/image005.png 1200w, https:\/\/phelixinfosolutions.com\/blog\/wp-content\/uploads\/2021\/09\/image005-300x157.png 300w, https:\/\/phelixinfosolutions.com\/blog\/wp-content\/uploads\/2021\/09\/image005-1024x536.png 1024w, https:\/\/phelixinfosolutions.com\/blog\/wp-content\/uploads\/2021\/09\/image005-768x402.png 768w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" \/><\/p>\n<ol start=\"6\">\n<li>\n<h4><span class=\"ez-toc-section\" id=\"Social_Media_Engagement\"><\/span>Social Media Engagement<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/li>\n<\/ol>\n<p><a href=\"https:\/\/phelixinfosolutions.com\/blog\/digital-marketing-strategies-product-vs-project-marketing\/\" target=\"_blank\" rel=\"noopener\">Digital marketing<\/a> is incomplete without social media marketing. Businesses should track social media metrics daily, for instance:<\/p>\n<h5><span class=\"ez-toc-section\" id=\"Likes_per_Post\"><\/span>Likes per Post<span class=\"ez-toc-section-end\"><\/span><\/h5>\n<p>To measure how much people like your content:<\/p>\n<p>Add up all the likes and thumbs up you\u2019ve received on each social platform. Next, divide it by the total number of posts you have on each social handle.<\/p>\n<h5><span class=\"ez-toc-section\" id=\"Comments_per_Post\"><\/span>Comments per Post<span class=\"ez-toc-section-end\"><\/span><\/h5>\n<p>Comments per post show how active your audience is to share their views on a post. It is easy to calculate comments per post.<\/p>\n<p>Add up all the comments under your post from all the social channels. Divide its sum with the total number of comments across your social channels.<\/p>\n<h5><span class=\"ez-toc-section\" id=\"Shares_per_Post\"><\/span>Shares per Post<span class=\"ez-toc-section-end\"><\/span><\/h5>\n<p>This metric shows how many times your content was shared in a given period. The shares refer to <a href=\"https:\/\/phelixinfosolutions.com\/blog\/five-amazing-websites-give-you-website-traffic-boost\/\">Facebook<\/a> and Instagram shares, retweets, and repins.<\/p>\n<h5><span class=\"ez-toc-section\" id=\"Clicks_per_Post\"><\/span>Clicks per Post<span class=\"ez-toc-section-end\"><\/span><\/h5>\n<p>Clicks per post measure the number of click-throughs via social media posts.\u00a0 To calculate the click per post of a given time, add up the number of clicks the post received in that period.<\/p>\n<p>Divide its sum by the number of social media posts published in the given time.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Conversion_Metrics\"><\/span>Conversion Metrics<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ol start=\"7\">\n<li>\n<h4><span class=\"ez-toc-section\" id=\"Shopping_Cart_Abandonment_Rate\"><\/span>Shopping Cart Abandonment Rate<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/li>\n<\/ol>\n<p>This metric measures how many visitors start shopping but leave the website <strong>without starting<\/strong> the checkout process.<\/p>\n<p>If the rate is low, a business can look for the website problems that prevent the visitors from checking out.<\/p>\n<p>To calculate shopping cart abandonment rate:<\/p>\n<p><strong>{1-(Completed transactions <em>\u00f7<\/em> Initiated Sales)} X 100<\/strong><\/p>\n<p>Initiated sales refer to the sales that weren\u2019t complete. The visitors added products to the carts but didn\u2019t buy them.<\/p>\n<ol start=\"8\">\n<li>\n<h4><span class=\"ez-toc-section\" id=\"Checkout_Abandonment\"><\/span><strong> Checkout Abandonment<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/li>\n<\/ol>\n<p>Checkout abandonment shows the percentage of customers that leave the website <strong>after <\/strong>starting the checkout process.<\/p>\n<p>A high percentage indicates problems in the website\u2019s checkout system.<\/p>\n<p>Use the following formula to calculate the Checkout abandonment rate:<\/p>\n<p><strong>{1-(No. Orders Placed <em>\u00f7<\/em> No. of Checkout Initiated)} X 100<\/strong><\/p>\n<ol start=\"9\">\n<li>\n<h4><span class=\"ez-toc-section\" id=\"Average_Order_Value\"><\/span>Average Order Value<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/li>\n<\/ol>\n<p>AOV measures the average price that customers pay for the items in their cart. Business owners check the average order value over time. It helps them to understand the customers\u2019 buying patterns. And the effectiveness of their marketing strategies.<\/p>\n<p>If a business\u2019s AOV is low, it needs to rethink its product quality, prices, and upselling.<\/p>\n<p>You can calculate your average order value by:<\/p>\n<p>Dividing the total revenue by the total number of orders<\/p>\n<p><strong>AOV = Revenue <em>\u00f7<\/em><\/strong> <strong>Total Orders<\/strong><\/p>\n<ol start=\"10\">\n<li>\n<h4><span class=\"ez-toc-section\" id=\"Sales_Conversion_Rates\"><\/span>Sales Conversion Rates<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/li>\n<\/ol>\n<p>Business owners are quite a fan of this metric. It tells them how many of their site visitors convert into customers.<\/p>\n<p>If the rate is low, it signifies that the website isn\u2019t converting many visitors into customers. Businesses can apply strategies to boost conversions and sell more to visitors.<\/p>\n<p>To calculate sales <a href=\"https:\/\/phelixinfosolutions.com\/blog\/how-to-maximize-conversion-for-a-small-e-commerce-store\/\">conversion rate<\/a>:<\/p>\n<p>Divide your total conversions of a given period with your total number of visitors. Multiply the quotient by 100 to get your answer in percentage.<\/p>\n<p><strong>(Conversions <em>\u00f7<\/em> Total Visitors) X 100<\/strong><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Retention_Metric\"><\/span>Retention Metric<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ol start=\"11\">\n<li>\n<h4><span class=\"ez-toc-section\" id=\"Customer_Lifetime_Value\"><\/span>Customer Lifetime Value<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/li>\n<\/ol>\n<p>If you want to keep your customers for a long time, you wouldn\u2019t want to miss this metric. CLV shows the average amount that a person will spend on your business during his time as your customer.<\/p>\n<p>Businesses use this metric to identify customers who are likely to spend more than others. A business can enhance their shopping experience, so they don\u2019t go to another business.<\/p>\n<p>Formula to calculate Customer Lifetime Value:<\/p>\n<ul>\n<li><strong>(Customer Value x Average Customer Lifespan)<\/strong><\/li>\n<li><strong>Customer Value = Average Purchase Value x Average Number of Purchases<\/strong><\/li>\n<li><strong>ECommerce Metrics And KPIs: Where Do <em>YOU<\/em> Stand?<\/strong><\/li>\n<\/ul>\n<p>To determine the performance of your business, calculate the KPIs that I\u2019ve shared above.<\/p>\n<p>Compare your metrics with the industry benchmarks to check your performance. If your metrics are lower than the industry benchmarks, don\u2019t fret.<\/p>\n<p>KPIs are subjective to each business. The size of the business, cost of products, nature of products, and many other things.<\/p>\n<p>But if your metrics are hitting the ground, it\u2019s a red flag! You need to pay attention to the metrics that aren\u2019t up to the benchmarks.<\/p>\n<p>I hope this article helps you measure the important KPIs and metrics in 2021.<\/p>\n<p><em>All the best\u00a0<\/em><\/p>\n<p><strong>Author Bio:<\/strong><\/p>\n<p>Ricky Hayes is the Co-Founder and Head of Marketing at Debutify &#8211; a <a href=\"https:\/\/phelixinfosolutions.com\/blog\/top-shopify-features-that-make-it-the-best-cms\/\">Shopify<\/a> theme for sales, helping brand owners build high-converting stores in minutes. He is a passionate <a href=\"https:\/\/phelixinfosolutions.com\/blog\/improve-the-personality-of-the-entrepreneurs\/\">entrepreneur<\/a> running multiple businesses, marketing agencies, and mentoring programs.<\/p>\n\n<div style=\"font-size: 0px; height: 0px; line-height: 0px; margin: 0; padding: 0; clear: both;\"><\/div>","protected":false},"excerpt":{"rendered":"<p>Metrics&#8230; Not the first time we\u2019re hearing this word! Everyone around us needs them. Either it\u2019s a high school science teacher, a football coach\u2026or even an online business. Metrics are important to measure performance. Unlike physical businesses, online businesses offer greater visibility of customers\u2019 behaviors and actions. For instance, can you tell how many people [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":2446,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"categories":[3351,25],"tags":[3417,3420,3418,3416,3419,3414,3415,3421],"class_list":["post-2444","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-marketing","category-seo","tag-b2b-ecommerce-metrics","tag-best-kpis-for-measuring-the-performance-of-an-ecommerce-business","tag-ecommerce-kpi-benchmarks","tag-ecommerce-kpi-examples","tag-ecommerce-metrics-aov","tag-ecommerce-metrics-dashboard","tag-ecommerce-metrics-google-analytics","tag-top-10-kpis-for-ecommerce"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v18.7 (Yoast SEO v23.9) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>11 Essential Ecommerce Metrics &amp; 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