| Metric | Formula | Example Data Sources | What it Measures | Business Benefit |
| Conversion Rate | Conversions / Site Sessions x 100 | Website Analytics (Google Analytics, Adobe Analytics) | Measures effectiveness of on-site promotions and site design at turning visitors into customers | Identify strengths/weaknesses of website to optimize conversion funnel📈 Increased conversion rate. |
| Average Order Value | Total Revenue / Orders | CRM (Salesforce, HubSpot), Order/Transaction Data (Shopify, Magento) | Tracks if customers are buying more per order over time | Evaluate merchandising and bundling strategies to increase spend per order📈 Increased Average Order Value |
| Repeat Purchase Rate | Repeat Orders / Total Orders x 100 | CRM (Salesforce, HubSpot), Order/Transaction Data (Shopify, Magento) | Demonstrates customer loyalty and indicates future revenue potential | Focus retention programs on repeat customers with highest lifetime value📈 Higher Customer Lifetime Value📈 Increased revenue |
| Cart Abandonment Rate | Abandoned Carts / Site Sessions with Cart x 100 | Website Analytics (Google Analytics, Adobe Analytics) | Identifies issues in checkout process leading customers to leave before purchase | Improve checkout experience to reduce lost sales opportunities📉 Reduce lost customers and sales📈 Increased revenue |
| Bounce Rate | Single Page Sessions / Total Sessions x 100 | Website Analytics (Google Analytics, Adobe Analytics) | Measures engaging website content and user experience to minimize quick exits | Optimize landing pages and entrances to keep visitors exploring site📈 Increased revenue📈 Increased retention |
| Return on Ad Spend (ROAS) | Revenue from Ad Campaign / Cost of Ad Campaign | Google Ad words, Social Media Analytics (Facebook Analytics, Twitter Analytics) | How much revenue you earn for each dollar spent on advertising. | Provides a clear indicator of the financial success of ad campaigns📈 Optimize marketing spend📈 Drives increased profitability |
| Pages Per Session | Total Page Views / Sessions | Website Analytics (Google Analytics, Adobe Analytics) | Tracks how much site content users are consuming per visit | Evaluate interest and effectiveness of content to increase time on site💡 Understanding what your customers want/Don’t want |
| Email List Growth Rate | (Email Subs End – Email Subs Start) / Email Subs Start x 100 | Email Service Provider (MailChimp, Constant Contact) | Key indicator of marketing reach and audience engagement over time | Grow high-quality subscriber base for promotions and retention📈 Increased subscriber count and chances of future sales |
| Social Media Engagement Rate | Engagements / Followers x 100 | Social Media Analytics (Facebook Analytics, Twitter Analytics) | Benchmarks effectiveness of social content at driving engagement | Refine social strategy to convert followers into customers📈 Increased conversion rate |
| Cost Per Acquisition | Marketing Spend / New Customers | CRM (Salesforce, HubSpot), Advertising Accounts (Google Ads, Facebook Ads) | Calculates return on marketing investments by channel | Identify and double down on highest ROI channels |
| Customer Lifetime Value | Avg Order Value x Purchase Frequency x Avg Customer Lifespan | CRM (Salesforce, HubSpot), Order/Transaction Data (Shopify, Magento) | Estimates long-term value of customers to prioritize retention | Focus on highest value customers to maximize revenue |
| Perfect Order Percentage | (Total orders – orders with defects) / Total orders | Order management system (ERP), Shipping data (FedEx, Post etc.), Customer feedback (Zendesk, Intercom etc.) | End-to-end supply chain accuracy | Identifies process issues impacting customer satisfaction |
| Purchase Order Cycle Time | Date PO approved – Date PO submitted | Procurement system (ERP),Shopify | Speed of procurement process | Help shorten lead times and improve agility |
| Inventory Turnover | Cost of goods sold / Average inventory value | Financial data (ERP, Accounting) Inventory data (ERP) | How efficiently inventory is managed | Optimize inventory levels and working capital |
| In-stock Rate | (Total units in stock) / (Total units sold) | Warehouse management system (ERP), Shipping data (FedEx, Post etc.), | Product availability | Maximize sales by avoiding stock-outs and lost sales |
| On-time Delivery | (Orders delivered on time) / (Total orders) | Order data, Shipping data (FedEx, Post etc.), | Reliability of delivery to customers | Ensure excellent customer service and satisfaction |