KPI
KPI’s that can help improve your e-commerce.
Return on investment
Measure the effectiveness of channels pay comparing revenue to marketing spend.
$$\text{ROI} = \frac{\text{Net Profit}}{\text{Total Investments}} \times 100$$
Year over year growth
Measure and compare variations for revenue, conversion rates, average order size, customer lifetime value and more.
$$\text{YOY} = \frac{\text{Sales this year}-\text{Sales last year}}{\text{Sales last year}}$$
Customer lifetime value
Understand the average value of a customer by using total profits, number of customers, and average number of years you retain a customer.
$$ \text{CLV} = \text{AVG order value} \times \text{Net profit %} \times \text{AVG customer retention} \times \text{AVG purchases per year} \times \text{AVG customer lifecycle in years} $$
Average order value
Determine the AOV overall and for each important channel.
$$\text{AOV} = \frac{\text{Total revenue}}{\text{Total number of orders}}$$
Conversion rate
Proportion of visits that result in purchases both overall and per channel.
$$\text{CR} = \frac{\text{Transactions}}{\text{Visits}} \times 100$$
Customer acquisition cost
How much overall are you paying to get customers. This is not cost or conversion
$$ \text{CAC} = \frac{\text{MCC} + \text{W} + \text{S} + \text{PS} + \text{O}}{\text{CA}} $$
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Cost abandonment rate
Per each important channel & per total
$$ \text{CAR} = 1 - \frac{\text{the total number of people who start checkout}}{\text{the total number of add to cart clicks}} $$
Search penetration index
How many visits are you getting from all search volume.
$$ \text{SPI} = \frac{\text{number of visitors}}{\text{number of searches}} $$
Purchase intention
How many users are on your website to buy a product.
$$ \text{PI} = \frac{\text{visitors that want to buy}}{\text{all visitors}} $$
Customer satisfaction index
Determined with post purchase surveys.
$$ \text{Customer satisfaction scale} \rightarrow \text{scale 1-5} $$
Net promoter score
How many customers are willing to recommend you to their friends
$$ \text{Net promoter score} \rightarrow \text{scale 1-10} $$