Key e-commerce metrics
Ilona Srebnicka avatar
Written by Ilona Srebnicka
Updated over a week ago

In any business there will always be some key performance indicators (KPIs) that are worth analyzing, in the case of the e-commerce industry you should focus on analyzing:

Average Order Value (AOV)

This is an indicator that tells you the average value of each order in your e-commerce business over a specific time period (e.g. one year). By analyzing this measure, you can plan your budget more accurately and make appropriate decisions based on your customer's purchasing behavior.

Customer Lifetime Value (CLV)

CLV is an indicator that measures how much a customer is worth to your e-commerce business. It represents the total value of revenue generated by an average customer over the last 12 months. By analyzing CLV, you can evaluate your marketing activities more accurately, take a broader view of your customer relationships, optimize your work, and allocate your marketing budget appropriately.

Conversion Rate (CR)

CR is a measure that tells you the percentage of users who visit your e-commerce site and ultimately make a purchase.

To calculate your e-commerce conversion rate (CR), divide the number of conversions by the total number of users (sessions) who visited your website and then multiply the result by 100%.

For example, if you recorded 1,000 sessions on your website and 40 people made a purchase, your shop's conversion rate is 4%.

CR = (number of conversions/number of sessions on the site) x 100%

Click To Open Rate (CTOR)

CTOR is a performance indicator, also known as click-through rate, which is used to measure the effectiveness of an email campaign by comparing the number of clicks on links contained in an email to the number of times that email is opened. CTOR is expressed as a percentage.

However, it is worth remembering that CTOR should not be the only key performance indicator you use to assess the effectiveness of an email campaign. In order to get a complete picture of the effectiveness of your efforts, it is also worth taking into account open rates, clicks, conversions, and sales that may be indirectly generated by the mailing.

To calculate CTOR, or click-through rate, divide the number of unique clicks on links by the number of unique messages opens, and then multiply the result by 100%:

CTOR = (Number of unique clicks: Number of unique opens) x 100%

Open Rate (OR)

OR is an indicator that reports the percentage of recipients who have opened an email message. You can analyze this rate by comparing it to benchmarks, testing different subject lines and headlines, segmenting recipients, monitoring trends, and taking into account other indicators such as click-through rate (CTR) or conversions. Open rate analysis allows the effectiveness of email campaigns to be assessed and the communication strategy to be adjusted.

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