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E-Commerce Homework

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27 views3 pages

E-Commerce Homework

Uploaded by

berfinozge
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Definitions of Given Metrics:

1) Conversion Rate:
This metric represents the proportion of visitors who complete a specific goal,
such as making a purchase, out of the total number of visitors. It is a crucial
measure of how effective a website is in achieving desired actions.
2) Click-Through Rate (CTR):

CTR calculates the frequency at which people click on a link or advertisement


compared to the number of people who viewed it. It's vital for evaluating the
performance of online ad campaigns.

3) Bounce Rate:
This percentage shows how many visitors leave a site after viewing only one
page. A high bounce rate may indicate that the site's content or layout needs
improvement.

4) Website Traffic:
This metric monitors the total number of visitors to a site, distinguishing
between first-time visitors and returning ones. It's essential for gauging the
site's overall popularity and user engagement.

5) Referral Traffic:
This tracks visitors who arrive at your site through links on other websites. It
helps assess the effectiveness of your external marketing efforts.

6) Shopping Cart Abandonment Rate:


This shows the number of shoppers who add items to their cart but do not
complete the purchase. It's a key indicator for identifying and addressing
issues in the checkout process.

7) Average Order Value (AOV):


AOV measures the average amount spent each time a customer places an
order. It helps businesses understand purchasing behavior and devise
strategies to increase sales.
8) Customer Acquisition Cost (CAC):
CAC calculates the total cost of acquiring a new customer by dividing all
marketing and sales expenses by the number of new customers acquired. It's
crucial for budgeting and evaluating marketing efficiency.

9) Pay-Per-Click (PPC):
PPC is an advertising model where advertisers pay a fee each time their ad is
clicked, which drives traffic to their website. It's a direct method to gain visits
rather than through organic means.

10)Pageviews:
This metric counts the total number of times a webpage is viewed. It's a basic
but important measure for understanding the volume of traffic and interest in
specific content.

11)Average Time Spent on Site (or Specific Landing Page):


This measures how long visitors stay on your site or a specific page on
average. Longer times typically indicate higher engagement with the content.

My Additional Metrics:

12) Customer Lifetime Value (CLV):


CLV forecasts the total net profit a business can expect from a customer over
the entire duration of their relationship. It helps focus on long-term customer
value.

13) Churn Rate:


Churn rate measures the percentage of customers who stop using your
product or service over a certain period. It's essential for understanding
customer retention and loyalty.

14) Return on Investment (ROI):


ROI calculates the profitability of an investment by dividing net profit by the
investment cost and expressing it as a percentage. It's a fundamental metric
for assessing business performance.

15) Revenue Per Visitor (RPV):


RPV is determined by dividing the total revenue by the number of visitors,
indicating the average revenue generated per visitor. It's useful for gauging
the effectiveness of your website in driving sales.

References
https://www.gartner.com/en/digital-markets/insights/what-is-customer-lifetime-value
https://pixelunion.net/blogs/state-of-the-union/9-ways-to-increase-your-stores-revenue-per-
visitor
https://www.investopedia.com/terms/c/churnrate.asp
https://visme.co/blog/what-is-a-good-conversion-rate/
https://www.investopedia.com/terms/c/clickthroughrates.asp
https://blog.hubspot.com/marketing/what-is-bounce-rate-fix
https://www.hotjar.com/blog/cart-abandonment-stats/
https://www.bigcommerce.com/articles/ecommerce/average-order-value/

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