Ecommerce Ecommerce Analytics and Metrics 2 — Questions and Answers
Question 1: What is a cohort analysis in ecommerce analytics?
- Segmenting products by sales velocity
- Analyzing groups of customers who share a common characteristic (e.g., acquisition month) over time (Correct answer)
- Grouping orders by shipping region
- Comparing two marketing campaigns head-to-head
Correct answer: Analyzing groups of customers who share a common characteristic (e.g., acquisition month) over time
Cohort analysis tracks groups of customers with a shared trait (like signup date) to understand retention, repeat purchase behavior, and LTV trends.
Question 2: What is the customer acquisition cost (CAC) formula?
- Total orders ÷ number of marketing campaigns
- Total marketing and sales spend ÷ number of new customers acquired (Correct answer)
- Revenue from new customers ÷ total ad impressions
- Average order value × number of new customers
Correct answer: Total marketing and sales spend ÷ number of new customers acquired
CAC = Total Sales & Marketing Spend ÷ Number of New Customers Acquired; it measures the cost of gaining each new customer.
Question 3: What does 'attribution modeling' help ecommerce marketers understand?
- How to attribute inventory shortages to specific suppliers
- Which marketing touchpoints receive credit for contributing to a conversion (Correct answer)
- How to divide revenue among product categories
- Which customer segment generates the highest AOV
Correct answer: Which marketing touchpoints receive credit for contributing to a conversion
Attribution modeling assigns credit to different marketing touchpoints along the customer journey to identify which channels drive conversions.
Question 4: What is a funnel visualization in ecommerce analytics?
- A chart showing seasonal revenue trends
- A step-by-step view of how users progress through the purchase process and where they drop off (Correct answer)
- A geographic heatmap of website traffic
- A report comparing mobile vs. desktop purchase rates
Correct answer: A step-by-step view of how users progress through the purchase process and where they drop off
A funnel visualization shows the conversion rate at each step (e.g., product view → cart → checkout → purchase) and highlights dropout points.
Question 5: What does the metric 'repeat purchase rate' (RPR) measure in ecommerce?
- How often a product is viewed multiple times before purchase
- The percentage of customers who make more than one purchase (Correct answer)
- The frequency of promotional sales within a year
- How often the same product is restocked
Correct answer: The percentage of customers who make more than one purchase
RPR = Customers with 2+ purchases ÷ Total Customers; a high RPR indicates strong customer loyalty and retention.
Question 6: What does the 'product affinity' report in ecommerce analytics show?
- Which products have the highest return rate
- Which products are frequently purchased together in the same order (Correct answer)
- Which product categories attract the most mobile shoppers
- Products that have the longest time-to-purchase cycle
Correct answer: Which products are frequently purchased together in the same order
Product affinity analysis identifies item combinations commonly bought together, informing cross-sell recommendations and bundle strategies.
Ecommerce Ecommerce Analytics and Metrics 2
What is a cohort analysis in ecommerce analytics?