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Understanding Web Analytics

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Conversion Rate

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The conversion rate is the percentage of visitors who complete a desired action (such as making a purchase). It's vital for assessing the effectiveness of an e-commerce site to turn traffic into sales.

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Bounce Rate

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Bounce rate indicates the percentage of visitors who leave the website after viewing only one page. It's important for understanding user engagement and the effectiveness of the landing page.

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Average Order Value (AOV)

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AOV is the average amount of money each customer spends per transaction. Used to evaluate pricing strategy, product mix, and promotions.

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Customer Acquisition Cost (CAC)

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CAC is the cost associated with convincing a customer to buy a product/service. Important to ensure that the cost of acquiring customers is not exceeding the revenue they bring.

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Customer Lifetime Value (CLTV)

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CLTV predicts the net profit attributed to the entire future relationship with a customer. Important for determining how much to invest in retaining customers.

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Traffic Sources

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Traffic sources categorize the origins of your site's visitors. Understanding these helps optimize marketing efforts and allocate budget effectively.

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Click-Through Rate (CTR)

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CTR measures the ratio of users who click on a specific link to the number of total users who view a page, ad, or email. It's a measure of the effectiveness of online advertising campaigns.

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Cart Abandonment Rate

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The cart abandonment rate is the percentage of online shoppers who add items to a shopping cart but then abandon it before completing the purchase. Reducing this rate can significantly increase revenue.

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Return on Advertising Spend (ROAS)

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ROAS measures the gross revenue generated for every dollar spent on advertising. It's essential to assess whether the advertising costs are profitable.

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Pageviews per Session

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This metric indicates the average number of pages viewed during a session. Higher pageviews can signify better engagement and interest in the site's content.

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Session Duration

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Session duration is the average length of time a user spends on your site. Longer durations can indicate higher engagement and interest in your content.

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Mobile Optimization

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Mobile optimization refers to adjusting your website's content to ensure that users on mobile devices have an optimal experience. It's important due to the increasing number of mobile users.

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Email Open Rate

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Email open rate is the percentage of email recipients who open an email campaign. It helps gauge the effectiveness of email subject lines and the overall success of email marketing strategies.

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Net Promoter Score (NPS)

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NPS measures customer loyalty and satisfaction based on how likely customers are to recommend your business to others. A high NPS is linked to repeat business and word-of-mouth marketing.

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Website Load Time

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Website load time is the duration it takes for a page to fully display content to a user. Faster load times can reduce bounce rates and improve overall user experience.

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