KPI’s

for

E-Commerce Industry

#DailyDoseOfPowerBI
 Conversion Rate
Conversion rate measures the percentage of
website visitors who complete a desired action,
such as making a purchase, signing up for a
newsletter, or creating an account.

It is calculated by dividing the number of

conversions by the total number of visitors.

Conversion rate is a critical KPI for e-

commerce companies because it reflects the
effectiveness of their website design, user
experience, and marketing efforts.
 Average Order Value
AOV measures the average amount spent by
a customer in a single order. It is calculated by
dividing the total revenue by the number of
orders.

AOV is an important KPI for e-commerce

companies because it reflects the effectiveness
of their pricing strategies and upselling/cross-
selling tactics.
Customer Acquisition Cost
CAC measures the amount of money spent
on marketing and sales activities to acquire a
new customer.

It is calculated by dividing the total marketing

and sales costs by the number of new
customers acquired.

CAC is an important KPI for e-commerce

companies because it helps them optimize
their marketing spend and allocate resources
more efficiently.
Cart Abandonment Rate
Cart abandonment rate measures the
percentage of customers who add items to
their shopping cart but do not complete the
checkout process.

It is calculated by dividing the number of

abandoned carts by the number of initiated
checkouts.

High cart abandonment rates can indicate

issues with website design, pricing, or payment
options.
 Return Rate
Return rate measures the percentage of orders
that are returned by customers. It is calculated
by dividing the number of returned orders by
the total number of orders.

Return rate is an important KPI for e-

commerce companies because it reflects the
effectiveness of their product descriptions,
images, and customer service.
 Customer Lifetime Value
CLV measures the total value of a customer
over their lifetime with a company.

It is calculated by multiplying the average

revenue per user by the expected number of
years a customer will stay with the company.

CLV is important for e-commerce companies

because it helps them prioritize customer
retention efforts and allocate resources
accordingly.
 Return on Ad Spend
ROAS measures the revenue generated from
a specific advertising campaign compared to
the cost of the campaign.

It is calculated by dividing the revenue

generated by the cost of the campaign.

By tracking ROAS, e-commerce companies

can evaluate the effectiveness of their
advertising campaigns and optimize their
marketing spend.
Thank You…