E-Commerce marketing metrics that every online store should track

“When you have eliminated the impossible, whatever remains, however improbable, must be the truth.”

– Sherlock Holmes

And that’s why Watson we love E-Commerce marketing. In case you have not noticed, there is a method in this madness. In this blog, we are sharing most important metrics every E-Commerce entrepreneur should track which would help in making informed decisions.

  1. Conversion rate

For an online store, conversion rate is the percentage of users who made purchases online against the number of visitors. When offline retail enjoys conversion rates in two digits, for most of the E-Commerce shops, even a single digit conversion rate is a good place to start with. Conversion rates can be measured at each ad platform, but we would recommend using Google Analytics so that there is a consolidated picture across all the channels and will be able to compare conversion rate at each channel level.

It’s not enough that there is a great product or traffic. Unless the customer journey in your online store is not optimized for conversion, you are not going to get high conversion rates. But many entrepreneurs ignore this aspect and focus on building traffic without first attaining acceptable level of conversion rates from their store. This increases the budget and make the whole effort unviable from a financial aspect.

  1. Sales Funnel

Conversion rate is an indicator of your online store health more from 20,000-foot-high. To optimize conversion rate, you need to dig deeper. The devil is always in the detail. Measuring conversion rates at each stage of the sales funnel is required to accomplish this goal. For an online store, the sales funnel can be defined by four stages and the conversions from one stage to another as follows.

  • Sessions to Product View Conversion
  • Product View to Add to Cart Conversion
  • Add to Cart to Check out Conversion
  • Checkout to Successful transactions

In Sales Funnel, you map the entire customer journey from the first touch point to post sales follow up. Once this is mapped, you can identify high drop-offs stages and take corrective action to improve that stage conversion rate.  Google Analytics helps you track both shopping behavior and checkout behavior.

We will be covering in detail the steps required to improve conversions at each stage in upcoming articles.

  1. Traffic Acquisition Metrics

For an E-Commerce entrepreneur, the answers to some of the questions are very important

  • What’s the current traffic to your online store?
  • How is your online store getting discovered online?
  • How strong is your digital presence?
  • All the effort your team is putting in to social media, is that getting converted to traffic that converts?

Tracking traffic acquisition channels and measuring its effectiveness allows E-Commerce marketers to identify where the bang for the buck is.  Once we start mapping traffic acquisition channels and their conversion rates, you can start making objective decisions on advertisement budgets based on ROI provided by each channel.

It’s common knowledge that the channels which are providing the maximum conversion need not be the costliest channel. The quality of each channel also varies from who is your target audience? Measuring traffic acquisition information and mapping it to conversion rate also helps you to sort this.

Google Analytics comes with some gem of feature to support you to measure traffic acquisition, conversions including assisted conversions.

  1. Engagement Metrics

As we create digital presence online through social media posts, articles, ads and through other means, we should start tracking how it is engaging with your targeted audience. We recommend tracking three metrics in this category.

Store Traffic – Store traffic refers to web users who visit a store. Store traffic can be measured in sessions, users and page views. Users provide information on the unique visitors to your store.  Sessions represent the number of individual sessions. A user can have multiple sessions. Usually if a user in inactive for half an hour or logs in again on the day, it’s treated as a separate session. Again, Google Analytics can be a great tool to measure the growth in the number of visitors and revisits.

Click Through Rate (CTR) – CTR tells you how effectively your ad content engages with the targeted audience. CTR provides you percentage of users who clicks on your ad to visit your online store against the number of impressions your ad has. CTR varies for each channel significantly. Understanding industry standards and using it as benchmarks should be the first step to gauge how efficiently we are doing.

Bounce Rate – Bounce rate reveals the percentage of visitors to your store who exit after reaching the online store. Bounce rate reveals your store’s effectiveness in holding visitors.

Average time spent – Measuring the average time spent by visitors not only provide you the confirmation of interest of visitors on the product, but also opens remarking opportunities based on their interest in various products they have visited.

  1. Cost per Acquisition (CPA) and Lifetime Value of Customer

Cost per acquisition (CPA) is your cost to acquire a new customer. Measuring CPA in Google Ads and FB ad platform are straight forward. It might require you some initial effort to put this in place for organic and referral traffic. But we strongly recommend doing it.

Your tolerance level towards CPA numbers should depend on what stage you are in. In the initial stage, you will need to sacrifice profitability for brand exposure. The factor that helps you to decide agreeable CPA is the lifetime value of the customer acquired. This is calculated by average order value with frequency of purchase by a customer on the defined time period. Measuring Customer lifetime value helps us to decide CPA in a more meaningful way.

Measuring and tracking these metrics helps in improving your ROI and helps in making course corrections wherever required. Digital marketing is still the most cost-effective marketing channel, but it’s not definitely cheap. So, understanding what is working for you and what is not is important.


At TeamSuccesso, we help eCommerce companies to get discovered online and to improve online sales through online stores, Amazon and Flipkart. Please drop us a mail if you are interested to know more.

Leave a Reply

Your email address will not be published. Required fields are marked *