CES Ecommerce Analytics & Performance Metrics 2 — Questions and Answers
Question 1: What is the Net Promoter Score (NPS) used to measure in ecommerce?
- Customer loyalty and the likelihood of customers recommending the brand to others (Correct answer)
- The net new customers acquired minus churned customers per month
- The ratio of positive to negative product reviews
- The percentage of social media followers who actively promote the brand
Correct answer: Customer loyalty and the likelihood of customers recommending the brand to others
NPS is derived from asking customers how likely they are to recommend the store (0–10 scale), with detractors subtracted from promoters to yield the overall score.
Question 2: What does 'bounce rate' indicate on an ecommerce website?
- The percentage of visitors who leave after viewing only one page without interacting further (Correct answer)
- The rate at which email campaigns are rejected by recipient mail servers
- The percentage of orders that are returned within 30 days
- The frequency of website downtime incidents per month
Correct answer: The percentage of visitors who leave after viewing only one page without interacting further
A high bounce rate means visitors are landing on a page and leaving immediately without exploring further, which can signal poor landing page relevance or user experience.
Question 3: What is the Customer Acquisition Cost (CAC) formula?
- Total marketing and sales spend divided by the number of new customers acquired in the period (Correct answer)
- Total revenue divided by the number of customers in the period
- Total ad spend divided by total website visitors
- Number of new customers divided by total marketing budget
Correct answer: Total marketing and sales spend divided by the number of new customers acquired in the period
CAC = Total Sales & Marketing Spend ÷ Number of New Customers Acquired, indicating how much it costs to acquire each new customer.
Question 4: What does a high 'refund rate' typically indicate for an ecommerce business?
- Problems with product quality, inaccurate descriptions, or poor customer expectations management (Correct answer)
- A generous return policy that is successfully retaining customers
- Strong demand for the product category leading to more transactions
- High customer satisfaction with the overall shopping experience
Correct answer: Problems with product quality, inaccurate descriptions, or poor customer expectations management
A high refund rate signals underlying issues such as misleading product descriptions, quality defects, or mismatched customer expectations that need to be addressed.
Question 5: What is a 'heat map' used for in ecommerce website analytics?
- To visually represent where users click, scroll, and spend time on a webpage (Correct answer)
- To display geographic regions with the highest customer density
- To show which products generate the most revenue on a map
- To visualize server response time across different geographic locations
Correct answer: To visually represent where users click, scroll, and spend time on a webpage
Heat maps use color gradients to show aggregated user behavior data — clicks, scrolls, and mouse movements — helping identify which page elements attract or repel visitors.
Question 6: What is the purpose of A/B testing in ecommerce?
- To compare two versions of a page or element to determine which performs better with real users (Correct answer)
- To test a website on two different browsers simultaneously
- To run simultaneous campaigns on two different advertising platforms
- To compare the performance of two competing products in the catalog
Correct answer: To compare two versions of a page or element to determine which performs better with real users
A/B testing (split testing) shows two variants to separate user groups simultaneously, using statistical significance to determine which version drives better conversion outcomes.
CES Ecommerce Analytics & Performance Metrics 2
What is the Net Promoter Score (NPS) used to measure in ecommerce?