Ecommerce Analytics & Performance Metrics Flashcards

What is the 'repeat purchase rate' metric in ecommerce?

Answer: The percentage of customers who make more than one purchase from the store

Repeat purchase rate measures the share of customers who return to buy again, indicating customer satisfaction and the effectiveness of retention strategies.

In ecommerce analytics, what is 'attribution modeling'?

Answer: The process of assigning credit for a sale to different marketing touchpoints in the customer journey

Attribution modeling determines how credit for conversions is distributed across the marketing channels a customer interacted with before purchasing (e.g., first-click, last-click, linear).

What does 'inventory turnover rate' measure in ecommerce?

Answer: How many times inventory is sold and replaced over a specific period

Inventory turnover = Cost of Goods Sold ÷ Average Inventory; a higher rate indicates efficient inventory management and strong sales velocity.

What is the 'sessions-to-order' metric in ecommerce?

Answer: The number of website sessions it takes on average before a customer completes a purchase

Sessions-to-order tracks how many website visits a customer typically needs before converting, helping to understand the multi-session buying journey.

What is 'time on site' (session duration) an indicator of in ecommerce analytics?

Answer: User engagement and interest in the website's content and products

Longer average session durations generally indicate higher user engagement, suggesting visitors find the content, products, or experience compelling enough to spend more time.

Which ecommerce KPI measures revenue generated per visitor to the website?

Answer: Revenue per visitor (RPV)

Revenue per visitor (RPV) = Total Revenue ÷ Total Visitors, and it combines conversion rate and average order value into a single metric showing how much each visitor is worth.