5 Ecommerce Metrics that Matter

Technology and consumer expectations are evolving rapidly in the ecommerce space. How do you avoid analysis paralysis and focus on core metrics that can truly help you gauge your brand’s health? Here are five metrics we use to monitor our portfolio of brands.


Like “feet in the door” for a brick and mortar, site traffic is the top of the funnel for an online brand. So how your traffic is trending is critical to downstream sales. Savvy business owners dive deeper into their traffic numbers by analyzing:

1) New vs. returning visitors,

2) Organic vs. paid visitors, and

3) Visitors by device (computer, tablet, mobile).

#2—Conversion Rate

There are several formulas for calculating conversion rates. We look at sales completed vs. the carts started (note: this is different than pay-per-click or display advertising conversion rates).  By looking at carts started instead of total traffic, we can eliminate the impact of new marketing campaigns or other activities that may cause increases in untargeted traffic to the site. If, after removing these influencers, conversion rates are trending downward for consumers who have started the purchase process, it may be time to re-evaluate your checkout process.

#3—Daily Transaction Volume

Sudden sales increases put pressure on hosting and servers as well as inventory, fulfillment, and shipping. And if your customer doesn’t receive a purchase on time, satisfaction with your brand can be damaged forever. Look for a commerce infrastructure that efficiently supports everything between your lowest and highest transaction volume days—think holidays vs. off-seasons.

#4—Repeat Purchases

Winning a purchase from a repeat customer costs a fraction of what it costs to attract a new customer—4-10 times more, according to the Chartered Institute of Marketing. Whether you re-invest those savings into your marketing budget or divert them straight to your bottom line, fostering customer loyalty and repeat purchases is a winning growth strategy.

#5—Revenue per Employee

How productive is your team? Can you increase revenue and profit with the same number of employees? For many business owners, management efficiency is a key growth driver. Tracking your revenue per employee measures your team’s productivity and the ability of your ecommerce platform to scale to meet your growth goals.

What are the metrics that matter most to your brand?