4 Important E-Commerce Metrics To Analyze Business Growth

Business by  Arnab Dey 29 September 2022

E-Commerce Metrics

Every E-Commerce store runs through an eCommerce campaign that is driven by its ideology and logo. There are plenty of waves to capture customers inside regarding the brand and the requirement of products in the market to build an efficient marketing and growth strategy.

Other than strategies there are profitmetrics that define the growth and success of your store. People are often confused between key performance indicators and metrics.

Metrics are data points that give the inside of business success but they are not crucial indicators of performance. They have to evaluate content marketing efficiency through indirectly connected conversions.

Key performance indicators define business financial and reputational performance. They are the mattresses that deal with statistics of companies that hate performance benchmarks and goals.

Checkout Four Prime E-Commerce Metrics To Analyze Business Growth:

Here are some metrics that help to evaluate the success of an e-commerce business.

1. Customer lifetime value (CLV)


Customer lifetime value is the amount of money the user spends on their first purchase. It helps to understand the connection and relativity with their target audience’s average income.

It has to estimate the number of money shoppers are willing to spend on a product. According to the study you need to spend around 30% of product value to get a new client.

2. Customer acquisition cost (CAC)

Customer acquisition cost is a metric that calculates how much a business owner can pay to get a first-time purchase. For financial stability, the company’s customer acquisition cause should be as low as possible.

For this purpose, business owners of managers use various distribution channels and marketing mediums like social media, PPC ads, email TV ads, and many more. Calculating customer accretion cost for every marketing channel helps businesses to detect the efficiency of all promotional campaigns.

The ideal customer acquisition cost is 30% of customer lifetime value which is calculated through various campaigns and promotional channels.

3. Customer retention rate (CRR)

Customer retention rate

Once you get customers it is important to retain them for a longer time period. Customer retention rate signifies the repeated order of customers after their first purchase.

A low customer attention rate is a warning signal regarding product or customer service quality. This low number welfare to build strong customer ways that improve the company’s revenue. According to the industry, customer retention rate changes but it should be around 25 to 35% for a good average estimate.

4. Refund or return rate (RrR)

Returning products is a common thing for eCommerce stores. The reason might be impulsive shopping after a second thought. Other cases might be disappointed with the quality of the product and return it.

In the e-commerce industry, the return rate is a warning sign. It can be because of the wrong target audience or positioning of the product or manufacturing defect. The tracking of these metrics gives an improved insight into the product.


Calculating and analyzing e-commerce metrics have to find your goals and stay focused on your business. The performance indicators are important to run efficient marketing campaigns and follow the best trends and practices to build a loyal target audience.

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Arnab Dey

Arnab is a passionate blogger. He is very much passionate about social media. His special interests are in current affairs, business, lifestyle, health, food, fitness, etc. If you want to read refulgent blogs so please follow The Daily Notes.

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