8 Key eCommerce metrics that help you understand and improve your business

When it comes to measuring eCommerce store performance, many people stop at measuring the number of customers and total sales. That information is crucial for understanding your business at a high level, however, also insufficient to action upon as it is too broad. So today we are going to discuss 10 metrics you should be measuring and how that can help you improve your eCommerce performance.

Customer Lifetime Value

The customer lifetime value is a prediction of the profit that can be attributed to the entire relationship with the customer. Knowing this figure allows you to more accurately figure out how much you can spend to acquire new customers without losing money on each one. Kissmetrics has a great infographic about how to calculate this figure.

% of repeat customers

The customer mix of repeat vs new ones is an important balance to maintain. Too few repeats could signal a poor customer experience, and that would lead to having to constantly acquire new customers. Too many and that could mean you’re not attracting enough new customers at the top of the funnel. Knowing this figure helps you to focus your marketing on retention, or attracting new customers.

Average Order Value

If you are organizing your marketing around each sale vs the customer, your average order value helps you ascertain how much you can be spending to acquire that sale. It also gives you information about how you can bundle your products and how your product mix affects overall sales. A handy tip here is to incentivise customers to spend just above the average order by having a deal such as free shipping for spending above that. You can also try out different product discovery features.

Clicks to Buy

Suffice to say, it should be easy for your customers to purchase your product(s). A measure of this is trying to keep the number of clicks and scrolls to a minimum. Some scrolling is even expected for a reputable site, but each click adds a loading time barrier between the sale and the customer. Having a keen sense of this is thus helpful

Conversion Rate

The conversion rate is the percentage of visitors that end up as customers on your page. This has a material impact in your calculations when it comes to advertising. Many publishers charge on a CPM basis, where you are charged for each thousand impressions. If your conversion rate is 3%, you are predicting that 30 out of every 1,000 visitors end up in a sale. By taking that together with the Average Order Value, you can predict how much you should be paying for advertising.


Registrations can indicate very different things depending on how your website is set up. For example, if you allow customers to check out as a guest, the percentage of registrations give an estimate of how many customers intend to come back and use your store again in the future. The registration process should thus be optimized to be kept simple.

Email Sign-ups

Visitors who sign up to your email list indicate they want to hear from you again in the future. This gives you an avenue to market new products or promotions to them, hopefully getting them into your store more often.

Customer Satisfaction

As with any business, customer satisfaction is definitely an important metric to track. This lets you see how changes you make to your store affects the experience.

Pages per visit

Pages per visit are a double-edged sword. On one hand, you want the process to be easy. On the other, you also want customers to browse through several products, hopefully buying more than one of them. A general rule of thumb is to keep customers browsing related products, rather than hunting through to find the one they want.

Time on site

Similar to pages per visit, this is a metric that needs some nuance. You want the buying experience to be quick and straightforward but at the same time pleasurable. So much so that customers enjoy browsing around looking at the different things they could buy from you.