To grow your ecommerce business you need to measure the performance of different channels to understand how they are performing.

The Entrepreneur magazine contributor William Harris has shared four metrics that can improve your ecommerce analytics.

Harris says, “Knowing the analytics behind every aspect of your ecommerce business will help you make informed decisions about which areas to change and which to optimize, and when. To do so successfully, start with these four metrics:

1. Customer lifetime value (LTV)

Customer lifetime value, or LTV, is one of the most important metrics to track in ecommerce, but it’s often overlooked for sexier metrics like ROAS (return on ad spend) and AOV (average order value).

LTV helps you understand how much profit you’ll earn during the average customer lifespan. Knowing the lifetime value of each customer you acquire can help with forecasting, budgeting and marketing strategy. More specifically, it can help you understand how much money you can spend acquiring customers while still remaining profitable. It can further help inform decisions and strategies relating to customer retention and order frequency. Calculating LTV isn’t overly complicated. It just requires you to know a few key data points and be able to perform some simple calculations”.

Ecommerce Analytics: 4 Metrics That Are Often Overlooked

Entrepreneur

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