What are the key metrics to track for your e-commerce store performance?

1 Customer Acquisition

One of the most important metrics to track is how you acquire your customers. You need to know where your traffic comes from, how much it costs, and how effective it is. You can use tools like Google Analytics, Facebook Pixel, or Shopify Analytics to track your sources of traffic, such as organic search, social media, email, or paid ads. You can also measure your customer acquisition cost (CAC), which is the average amount you spend to acquire a new customer. To calculate your CAC, divide your total marketing and sales expenses by the number of new customers in a given period. You want to keep your CAC as low as possible and make sure it is lower than your customer lifetime value (CLV), which is the average amount a customer spends with you over their lifetime.

2 Conversion Rate

Another key metric to track is your conversion rate, which is the percentage of visitors who take a desired action on your site, such as making a purchase, signing up for a newsletter, or clicking on an affiliate link. You can use tools like Google Analytics, Hotjar, or Optimizely to track your conversion rate and identify the factors that influence it, such as your site design, copy, offer, or user experience. You can also run A/B tests to compare different versions of your site and see which one performs better. You want to increase your conversion rate as much as possible and make sure it is higher than your industry average.

3 Average Order Value

Another key metric to track is your average order value (AOV), which is the average amount a customer spends per order on your site. You can use tools like Shopify Analytics, WooCommerce, or BigCommerce to track your AOV and see how it varies by product, category, or customer segment. You can also use strategies like upselling, cross-selling, bundling, or offering free shipping to increase your AOV and boost your revenue. You want to increase your AOV as much as possible and make sure it is higher than your cost of goods sold (COGS), which is the total cost of producing or acquiring the products you sell.

4 Customer Retention

Another key metric to track is your customer retention, which is the percentage of customers who return to your site and make repeat purchases. You can use tools like Shopify Analytics, Klaviyo, or LoyaltyLion to track your customer retention and see how it varies by product, category, or customer segment. You can also use strategies like email marketing, loyalty programs, referrals, or personalization to increase your customer retention and build long-term relationships. You want to increase your customer retention as much as possible and make sure it is higher than your customer churn rate, which is the percentage of customers who stop buying from you in a given period.

5 Revenue and Profit

The ultimate goal of tracking your e-commerce store performance is to increase your revenue and profit. Revenue is the total amount of money you generate from your sales, while profit is the amount of money you keep after deducting your expenses, such as COGS, CAC, and overhead. You can use tools like Shopify Analytics, QuickBooks, or ProfitWell to track your revenue and profit and see how they vary by product, category, or customer segment. You can also use strategies like pricing, discounting, or cost-cutting to increase your revenue and profit and achieve your financial goals. You want to increase your revenue and profit as much as possible and make sure they are higher than your break-even point, which is the point where your revenue equals your expenses.