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Common E-Commerce KPIs

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Conversion Rate

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The percentage of visitors who take a desired action. It's important because it measures the success of an e-commerce site in prompting customers to buy.

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Average Order Value (AOV)

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The average dollar amount spent each time a customer places an order on a site or app. It's important as it helps in measuring the value of each transaction and strategizing pricing and upselling.

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Customer Lifetime Value (CLTV)

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A prediction of the net profit attributed to the entire future relationship with a customer. It's crucial as it helps businesses in understanding how much they should invest in maintaining customer relationships.

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Shopping Cart Abandonment Rate

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The rate at which users add items to their cart but do not complete the purchase. It is important because it highlights issues in the checkout process or user experience that need improvement.

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Traffic (by source)

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The amount of visitors and where they come from (e.g., organic search, paid ads, social media). It's important because it helps businesses understand and optimize their marketing efforts and identify the most profitable channels.

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Bounce Rate

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The percentage of visitors who navigate away from the site after viewing only one page. It's important as it can indicate the quality of the site and relevance of the content to the audience.

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Customer Retention Rate

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The percentage of customers who continue to buy from an e-commerce website over a given period. It is key for understanding customer loyalty and the effectiveness of retention strategies.

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Return on Advertising Spend (ROAS)

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A marketing metric that measures the efficacy of a digital advertising campaign. It's important because it helps businesses understand the effectiveness of each advertising dollar spent.

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Net Promoter Score (NPS)

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A measure of customers' willingness to recommend a company's products or services. It is important as it correlates with revenue growth and customer satisfaction.

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Cost Per Acquisition (CPA)

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The cost of acquiring a new customer. It's important because it helps in determining the return on investment for marketing strategies.

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Click-Through Rate (CTR)

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The ratio of users who click on a specific link to the number of total users who view a page, email, or advertisement. It is important as it indicates the effectiveness of online advertising and marketing efforts.

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Email Open Rate

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The percentage of email recipients who open an email compared to the total number of emails sent. It's important for assessing the effectiveness of email marketing campaigns.

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Revenue Per Visitor (RPV)

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The amount of money generated per visitor to a website. It's important as it helps e-commerce businesses assess the overall value that each visitor brings and can influence marketing and site design decisions.

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Session Duration

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The average length of a session on an e-commerce site. It's important because it indicates user engagement, interest level, and the effectiveness of site content in retaining visitors.

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Mobile Sales Conversion Rate

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The percentage of mobile visitors who make a purchase compared to the total number of mobile visitors. It's important as it reflects the effectiveness of the mobile shopping experience provided by an e-commerce business.

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