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Identify key performance indicators
€12.31 – €16.35Price range: €12.31 through €16.35**5 Key Performance Indicators (KPIs) for an E-commerce Business**
1. **Conversion Rate**
Measures the percentage of visitors who complete a purchase, indicating the effectiveness of the website in turning traffic into sales. A higher conversion rate signals improved user experience and marketing strategies.
2. **Customer Acquisition Cost (CAC)**
Calculates the cost of acquiring a new customer, including marketing and sales expenses. This KPI helps evaluate the efficiency of marketing efforts and identify areas to optimize budget allocation.
3. **Average Order Value (AOV)**
Tracks the average amount spent per order. Increasing AOV can boost revenue without increasing the number of customers, making it a key focus for strategic pricing and upselling.
4. **Customer Lifetime Value (CLV)**
Estimates the total revenue a business can expect from a single customer throughout their relationship. Comparing CLV with CAC is essential to ensure profitability and inform strategies for customer retention.
5. **Cart Abandonment Rate**
Indicates the percentage of shoppers who add items to their cart but do not complete the purchase. This KPI highlights potential friction points in the checkout process that need to be addressed.
Would you like to explore strategies to improve any of these KPIs or need recommendations tailored to a specific business context?