CES Ecommerce Analytics & Performance Metrics

Question 1

What does conversion rate measure in ecommerce?

Accepted Answer

The percentage of website visitors who complete a desired action such as making a purchase

Answer

The rate at which email subscribers convert to social media followers

Answer

The percentage of cart abandonment relative to completed orders

Answer

The ratio of paid to organic traffic on the website

Question 2

What is Customer Lifetime Value (CLV or LTV) in ecommerce?

Accepted Answer

The total revenue a business expects to earn from a customer over the entire relationship

Answer

The average order value of a customer's first purchase

Answer

The total number of orders a customer places in a single year

Answer

The discount value offered to loyal customers over time

Question 3

What does cart abandonment rate measure?

Accepted Answer

The percentage of shoppers who add items to their cart but leave without completing the purchase

Answer

The percentage of orders cancelled after payment is confirmed

Answer

The rate at which customers abandon wish lists without adding to cart

Answer

The percentage of returns initiated within 24 hours of purchase

Question 4

What is Average Order Value (AOV) in ecommerce analytics?

Accepted Answer

The average dollar amount spent per transaction on the store

Answer

The average number of items per customer order

Answer

The average discount percentage applied per order

Answer

The average shipping cost per completed order

Question 5

What is the purpose of cohort analysis in ecommerce?

Accepted Answer

To track the behavior and metrics of groups of customers who share a common characteristic over time

Answer

To compare the performance of different product categories side by side

Answer

To analyze the seasonal trends in monthly revenue

Answer

To segment customers by geographic region for targeting

Question 6

What does the metric 'Return on Ad Spend' (ROAS) measure?

Accepted Answer

The revenue generated for every dollar spent on advertising

Answer

The percentage of ad budget spent on returning customers

Answer

The ratio of organic to paid traffic after a campaign

Answer

The total cost of advertising as a percentage of gross revenue