Must-Track Ecommerce KPIs for Scaling Your Online Store

Running any ecommerce store without keeping track of the right numbers is like driving blindfolded - you might move forward but you are definitely going to crash. So there is a need to look after other important figures other than sales to scale your online store.
Are your customers coming back? Is your marketing actually working? Where are you losing potential buyers? - These are some of the few questions that will decide the fate of your ecommerce store. And this is where you need KPIs (Key Performance Indicators).
These numbers tell the real story behind your store’s growth (or lack of it).
In this blog, we’ll break down the must-track ecommerce KPIs that will help you make smarter, profit-boosting decisions.
Let’s start.
What Are Ecommerce KPIs And Why Are They Important?
Alright, let's cut through the jargon and get to the heart of it: What exactly are ecommerce KPIs, and why should you care?
KPIs, or Key Performance Indicators, are the vital signs of your ecommerce store. To understand in easy words, you can think of them as a pulse that tells you how healthy your business is. These are particular indicators that show how successfully you're meeting your goals, whether they be website performance, customer retention, or sales growth.
But here's the kicker: not all metrics are created equal.
It can be tempting to monitor every piece of information that comes up, but it's important to focus on the KPIs that support your company's objectives.
For instance, obsessing over website traffic is pointless if those visitors aren't converting into paying customers.
So, why are these KPIs so important? Let's break it down:
Making Well-Informed Decisions: KPIs offer concrete information that guide your strategies. Rather than speculating, you have clear evidence of what's working.
Identifying Strengths and Weaknesses: By monitoring KPIs, you can pinpoint exactly where your store excels and where it falls short.
Measuring Progress Over Time: You can identify trends, understand the impact of trends, and evaluate the success of your marketing activities by routine inspection.
Resource Allocation: Knowing which areas are performing well helps you allocate time and money more effectively, ensuring you're investing in the right aspects of your business.
Also read: Master Shopify SEO in 2025 - Tips To Rank Higher.
Important Ecommerce KPIs That You Must-Track In 2025
Let's break down the essential ecommerce Key Performance Indicators (KPIs) into three main categories: Sales, Marketing, and Customer Service.
#1 Sales
Total Sales Revenue
This is the total amount of money made over a given period of time (daily, weekly, monthly, or annually) from all completed transactions. It offers an extensive summary of the financial well-being of your store. While a consistent rise in revenue suggests that the business is expanding, a fall in revenue suggests that there may be problems with pricing, low demand, or poor marketing.
Why It Matters:
- Helps measure overall profitability.
- Indicates how well your pricing strategy and promotions are working.
- Allows comparison with industry benchmarks to assess competitiveness.
Pro tip: To spot seasonal trends or products that aren't selling well, check your sales over different time periods and product categories regularly.
Average Order Value (AOV)
AOV indicates the average amount a consumer spends on each transaction. A higher AOV means customers are buying more items per transaction or choosing higher-priced products.
How to calculate:
AOV = Total Revenue/Number of Orders
Why It Matters:
- Helps predict future revenue and profitability.
- Guides pricing, bundling, and upselling strategies.
- Improves customer acquisition efficiency—higher AOV means more revenue per customer.
Example: If your total revenue for the month is $50,000 from 1,000 orders, your AOV would be: 50,000÷1,000=$50
How To Increase AOV:
- Give free shipping for orders above a certain amount.
- Use product bundling, such as "Buy 2 Get 1 Free."
- At checkout, apply cross-selling and personalised upselling strategies.
Conversion Rate
This indicator lets you see what proportion of people who visit your website become paying customers. A low conversion rate can be an indicator of problems like a poorly designed website, slow loading times, or an absence of trust signals (such as reviews and safe payment methods).
How to calculate:
Conversion Rate = (Total Sales ÷ Total Visitors) × 100
Why It Matters:
- Helps in evaluating the user experience, price, and performance of your website.
- Impacts the profitability of ad spend; better returns are associated with higher conversions.
- Gives information about consumer behaviour and areas that require improvement.
Example: If your store gets 20,000 visitors and 400 of them make a purchase: (400÷20,000)×100= 2% conversion rate.
How To Increase Conversion Rate:
- Optimize product pages by adding trust badges, thorough descriptions, and high-quality images.
- Reduce the number of steps in the checkout process and offer a variety of payment methods.
- Send out abandoned cart recovery emails to entice potential customers to return.
Also read: A guide to average ecommerce conversion rate in 2025.
CLV calculates how much money a company can make from a single customer over the course of that customer's association with the brand. It’s a crucial metric for long-term profitability, as acquiring new customers is often more expensive than retaining existing ones.
How to calculate:
CLV = Average Purchase Value×Purchase Frequency×Customer Lifespan
Why It Matters:
- Helps in figuring out how much you can afford to spend on acquiring new customers.
- Encourages companies to focus on loyalty and customer retention initiatives.
- Guides personalized marketing tactics based on consumer purchasing trends.
Example: If a customer typically spends $50 per purchase, buys three times a year, and stays loyal for five years, their CLV would be: 50×3×5=$750.
How To Increase Customer Lifetime Value:
- Establish a loyalty program with special benefits for loyal customers.
- Maintain customer engagement by offering excellent customer service.
- Make tailored product recommendations based on past purchases.
#2 Marketing
Customer Acquisition Cost (CAC)
CAC provides you with the cost of acquiring new customers through sales and marketing initiatives. A high CAC indicates that you are overspending on customer acquisition, which can hurt profitability.
How to calculate:
CAC = Total Marketing & Sales Expenses/Number of New Customers
Why It Matters:
- Helps in monitoring the effectiveness of advertising campaigns.
- Allows companies to maximize ROI and optimize spending.
Works best when compared with Customer Lifetime Value (CLV)—your CLV should always be higher than your CAC.
Example: If you spend $5,000 on ads and sales efforts and acquire 250 new customers: 5,000÷250= $20 CAC per customer.
How to Lower CAC:
- Improve organic traffic through SEO and content marketing.
- Use referral programs to encourage word-of-mouth marketing.
- Retarget website visitors with personalized offers instead of spending on new leads.
Return on Advertising Spend (ROAS)
ROAS shows the revenue earned for each dollar spent on ads. It helps to determine whether your ads are profitable or not.
How to Calculate:
ROAS = Revenue from Ads/Cost of Ads
Why It Matters:
- Offers perspective on which ads are performing well
- Helps to efficiently allocate budget across various platforms
- A ROAS above 3:1 is generally considered profitable, but this varies by industry.
Example: If you spend $2,000 on ads and generate $10,000 in revenue: 10,000÷2,000= 5 ROAS
Ways to Improve ROAS:
- Target high-intent audiences through data-driven ads.
- A/B test ad creatives to find the most effective designs.
- Optimize landing pages to convert more clicks into sales.
Email Open Rate
Email marketing is one of the highly sought after marketing strategies used by popular brands. An email open rate shows how many recipients actually open your emails, which reflects subject line effectiveness and audience interest.
How to calculate:
Email Open Rate = Emails Opened/Emails Sent x 100
Why It Matters:
- Indicates how well the subject lines are working
- Helps to improve engagement and sales
- A low rate is an indication of emails landing in spams or being irrelevant
Example: If you send 5,000 emails and 1,250 people open them:
(1,250÷5,000)×100= 25% open rate
Ways to Improve Open Rate:
- Use personalized subject lines to grab attention.
- Send emails at optimal times when users are most active.
Social Media Engagement Rate
This indicator shows how frequently your followers engage with your posts on social media by showing likes, comments, shares, and clicks. A high level of involvement suggests your audience values the content you provide.
How to calculate:
Engagement Rate = Total Engagements/Total Followers x 100
Why It Matters:
- Helps to identify consumer interest and measure brand awareness
- A higher engagement rate is an indication of better organic reach
Example: If you have 10,000 followers and 800 total engagements (likes, shares, and comments) on a post:
(800÷10,000)×100= 8% engagement rate
Ways to Increase Engagement:
- Post interactive content like polls, quizzes, and giveaways.
- Respond to comments and messages to build relationships.
- Use video content, which generally gets higher engagement than images or text.
#3 Customer Service
Customer Satisfaction Score (CSAT)
CSAT calculates how happy consumers are with your product or service, typically by asking them to rate their experience in a survey.
How to calculate:
CSAT = Positive Responses/Total Responses x 100
Why It Matters:
- Directly reflects the quality of your product and service
- Helps identify pain points in the shopping or support experience.
- Allows businesses to adjust based on real customer feedback.
Example: If 800 out of 1,000 survey respondents give positive ratings, your CSAT score would be: (800/1000) x 100 = 80%
Pro Tip: Keep surveys short and ask specific questions about the shopping experience to get useful insights.
Net Promoter Score (NPS)
NPS gauges customer loyalty and their likelihood to recommend your brand. It classifies customers into three categories:
- Promoters (Score 9-10): Loyal customers who love your brand.
- Passives (Score 7-8): Satisfied but not enthusiastic.
- Detractors (Score 0-6): Unhappy customers who might discourage others.
How to calculate:
NPS=Percentage of Promoters−Percentage of Detractors
Why It Matters:
- Helps predict customer loyalty and word-of-mouth marketing impact.
- Identifies potential brand advocates and dissatisfied customers.
- Provides insights into long-term business growth.
Example: If 60% of respondents are promoters and 20% are detractors:
60−20= 40 (NPS Score)
Pro Tip: Follow up with detractors to understand their concerns and improve their experience.
Also read: Boost Retention with Shopify Plus Loyalty & Personalization
First Response Time
This metric tracks how quickly customer support responds to a query. A fast response time builds trust and improves customer satisfaction.
How to Calculate:
First Response Time = Total First Response Time/Number of Inquiries
Why It Matters:
- Affects customer perception of your brand’s support quality.
- Delayed responses can lead to lost sales and negative reviews.
- Faster support helps resolve issues before they escalate.
Example: If your team takes a total of 5,000 minutes to respond to 1,000 inquiries, the average response time is: 5,000÷1,000= 5 minutes
Pro Tip: Use chatbots for instant responses and prioritize urgent queries.
Customer Retention Rate
This measures how many customers keep coming back to make repeat purchases.
How to Calculate:
Retention Rate = Customers at End of Period−New Customers Acquired/Customers at Start of Period x 100
Why It Matters:
- Higher retention means more repeat sales and lower acquisition costs.
- Loyal customers tend to spend more over time.
- Helps assess customer experience and brand loyalty.
Example: If you start the quarter with 1,000 customers, gain 300 new ones, and end with 1,100 customers:
(1,100−300)÷1,000×100=80% retention rate
Pro Tip: Offer exclusive discounts and personalized recommendations to keep customers engaged.
Frequently Asked Questions
Which ecommerce KPI is the most important to track?
There’s no single "most important" KPI—it depends on your business goals. However, if you’re looking to maximize revenue, Conversion Rate and Average Order Value (AOV) are crucial. If you're focused on long-term growth, Customer Lifetime Value (CLV) and Customer Retention Rate should be prioritized. Tracking a combination of these KPIs gives you a complete picture of your store’s health.
How often should I check my ecommerce KPIs?
The frequency of tracking depends on the KPI:
- Daily: Conversion Rate, Sales Revenue, Cart Abandonment Rate (for quick optimizations).
- Weekly: CAC, ROAS, and Social Media Engagement (to tweak marketing strategies).
- Monthly/Quarterly: CLV, Customer Satisfaction Score, and NPS (for long-term improvements).
Regular tracking ensures you catch performance issues early and adjust your strategies accordingly.
How can I improve my conversion rate if my website gets a lot of traffic but few sales?
A low conversion rate often indicates barriers in the shopping experience. To fix this:
- Optimize your product pages with high-quality images, compelling descriptions, and trust signals (reviews, secure payment icons).
- Streamline the checkout process by reducing steps and offering multiple payment options.
- Implement abandoned cart recovery strategies, like personalized email reminders and limited-time discount offers.
- A/B test different website elements to see what works best for conversions.
What’s a good ROAS (Return on Ad Spend) for an ecommerce store?
A general benchmark for ROAS is 3:1 or higher, meaning you generate $3 in revenue for every $1 spent on ads. However, this varies by industry and profit margins. If your ROAS is low:
- Refine your targeting to focus on high-intent shoppers.
- Use retargeting campaigns to bring back previous visitors.
- Optimize your landing pages to ensure they align with your ad messaging and provide a smooth buying experience.
How do I increase my Customer Lifetime Value (CLV) without increasing ad spend?
Raising CLV is about nurturing existing customers rather than constantly acquiring new ones. Here’s how:
- Introduce a loyalty program with exclusive rewards.
- Personalize recommendations based on past purchases.
- Improve post-purchase engagement with follow-up emails, discounts, or educational content.
-
Offer subscription models for recurring purchases.
By increasing CLV, you maximize revenue without constantly spending on new customer acquisition.
To Wrap Up
Understanding and tracking the right ecommerce KPIs can make all the difference in how your store performs. These metrics give you a clear picture of what’s working, what needs improvement, and where new opportunities lie. By regularly analyzing data and making informed adjustments, you can refine your strategy, improve customer experience, and drive sustainable growth.