20 Key Ecommerce Metrics to Track for Business Growth (2024)
Metrics are like invisible eyes that let you see beyond the sale and loss and show you why things are going well or not so well.
For eCommerce businesses, it’s always better to use real data to make decisions instead of just guessing.
In this blog, find out about 20 critical eCommerce business metrics you should keep an eye on for your online business in 2024.
Key eCommerce Metrics
Here is the list of 20 Key Shopify Store Metrics for you to measure for more success:
1. Sales Conversion Rate
One of the primary eCommerce performance indicators is the sales conversion rate.
Sales conversion rate is the percentage of website visitors who have converted and made a purchase. It is calculated by dividing the number of transactions by the total number of visitors and multiplying by 100.
For eCommerce metrics 2024, conversion rates help in identifying the roadblock where the potential customer is dropping off in the sales funnel. This understanding will help you in optimizing sales funnels with strategic decisions.
Recommended read: Best Shopify Apps to Increase Sales on Your Online Store (2024)
2. Average Order Value (AOV)
Average Order Value helps you understand the average amount a customer is spending in his/her single transaction on your eCommerce platform.
AOV helps you understand your customers’ spending behaviors, with which businesses can identify opportunities in the future for revising their pricing approach and even integrating a cross-selling up-selling approach.
Recommended read: How To Improve Your Shopify Business Average Order Value
3. Customer Lifetime Value (CLV)from
Customer Lifetime Value refers to the total net profit a business can expect a particular customer throughout their entire lifetime of business.
For eCommerce metrics 2024, customer lifetime value helps in spotting early signs of attrition and making the strategy to stop it. By collecting a group of your best customers, you can also identify common factors in this group and leverage them for your businesses.
Recommended read: How Can Shopify Brands Improve Their Customer Lifetime Value (CLTV)
4. Customer Acquisition Costs (CAC)
Customer Acquisition Cost is the average cost a business invests (in the form of marketing and advertising expenses) to earn a new customer.
It is essential to track this metric to achieve clarity on how much the business is getting a return on investment to understand which marketing/advertisement channels are more cost-effective and which channels are most successful.
5. Shopping Cart Abandonment Rate
It refers to the percentage of online shoppers who add items to their shopping carts but leave the website without completing the purchase.
For eCommerce metrics 2024, businesses should keep track of this metric because a high abandonment rate could signal a poor user experience, issues in the checkout process, or pricing concerns.
6. Returning Customer Rate
This metric measures the percentage of customers who make repeat purchases on your eCommerce platform.
Returning customers rate indicates the overall health of the customer base. While measuring this metric, focus on specific time frames, to find the accurate value a customer is bringing. This metric is also important to balance encouraging customers to make repeat purchases and acquiring new customers.
7. Bounce Rate
The Bounce Rate represents the percentage of visitors who leave your website after viewing only one page as the content was not engaging enough.
For eCommerce metrics 2024, a high bounce rate represents your customers are highly disappointed and they didn’t find on your website what they expected. Analyze your website to fix the issues.
Recommended read: Different Actions Of Store Visitors And How You Can Turn Them Into Sales
8. Impressions
Impressions refer to the number of times an ad or product is displayed, irrespective of whether it is clicked or not.
Impressions give you a perspective on engagement. While this is not one of the primary metrics, it does paint a clear picture of your brand exposure.
9. Reach
Reach measures the total number of unique users who see your content.
For eCommerce metrics 2024, reach is a top-of-funnel metric, it helps assess how well a campaign is penetrating the target audience and whether it is achieving the desired level of visibility among potential customers.
10. Engagement
Engagement is likes, comments, shares, and time spent on the site. It simply shows the level of involvement customers are having with your brand.
Tracking engagement helps your team to understand what is working for your brand and what is not. It helps you keep relatable and relevant content in the game and optimize your less-working content. Monitoring engagement also allows businesses to gather feedback and perform sentimental analysis.
11. Net Promoter Score (NPS)
Net Promoter Score measures customer loyalty towards your brand. It shows how many customers are likely to recommend your business to others. Several businesses also use NPS in their CRM strategy.
NPS data is collected by asking each of your customers how likely are they to recommend you to their friend, on a scale of 0 to 10.
For eCommerce metrics 2024, the NPS score gives you a direct breach into the brand perception of your customers, and knowing on what number your brand stands you can work on addressing the issues your unhappy customers are facing.
12. Click-through Rate (CTR)
CTR tells you about what percentage of people click on a specific link, ad, or email out of the total who view it. It gives you an idea about the success of your marketing campaigns.
That means,
High-CTR Customers are finding your link relevant.
Low CTR= Not so much.
For eCommerce metrics 2024, tracking CTR ensures alignment between the ad/link content and what users are actively seeking. This relevance also decides your Ad Rank in the search engines.
13. Store Sessions by Traffic Source
This metric tracks from which source your visitors come. For example, it helps you to know whether your new visitor came via an organic search, paid ads, social media, etc.
Understanding these traffic sources helps you allocate the right resources to the right place as high-performing sources should get more of your investment and efforts.
Recommended read: How To Drive More Traffic To Your Shopify Store in 2024?
14. Store Sessions by Device Type
This metric enables you to understand the distribution of your visitors based on the devices they are using, such as desktop, mobile, or tablet.
For eCommerce metrics 2024, understanding this metric allows you to optimize the user experience. For example, if the majority of your visitors are using mobile to explore your products, a mobile-friendly website leaves a positive impact enhancing your conversion chances.
15. Store Sessions by Location
This metric tracks the geographical locations of website visitors.
Knowing about the location of your audience helps you build personalized as well as targeted marketing efforts and product offerings.
This metric also helps in streamlining shipping and logistics operations and optimizing warehouse locations.
16. Top Products by Units Sold
This metric helps you understand the best-performing products based on the number of units sold within a specific time frame.
By knowing which of your products are hit in the market, you better understand your customer preferences and market demand. Optimizing the supply and marketing for these products can drive revenue growth and improve overall sales performance.
17. Month-End Inventory Snapshot
This metric provides a complete report of all the products in your inventory, along with their stock levels at the end of the month.
Inventory management is an important aspect of any eCommerce business and this metric helps avoid stock outs or overstock situations. For example, suppose the month-end report shows 100 units of a specific item available for sale, but your physical count reveals only 90 units, revealing an issue in stock accuracy.
Recommended read; How To Use Your Shopify Customer Account Page for eCommerce Inventory Forecast
18. Average Inventory Sold per Day
For eCommerce metrics 2024, this metric calculates the average amount of inventory sold per day, providing insights into daily sales patterns. Understanding daily sales trends helps businesses plan inventory replenishment and marketing efforts.
19. Refund and Return Rate
Refund and Return Rate measures the percentage of sold items that customers have returned for a refund. If your return and refund rate is high, it points to potential issues with product quality.
The return process is only completed once a customer fills out the feedback forms and businesses can use this feedback to make informed improvements to their products, services, or overall customer experience.
20. Churn Rate
This metric counts the customers who stop purchasing from your eCommerce store over a specific period.
For eCommerce metrics 2024, a lower churn rate means that customers stay with your business for longer periods. It provides businesses with more opportunities to generate revenue. Lower churn rates also contribute to higher CLV (Customer Lifetime value).
Conclusion
To sum it up, keeping an eye on these 2024 online retail KPIs is significant. Shopify analytics tracking will give you a detailed report on how visitors interact with your website helping you businesses to create your business strategies accordingly.
Follow our blog for more insights into 2024’s strategies and set yourself up for triumph.
