Ecommerce Ecommerce Analytics and Metrics 2

Question 1

What is a cohort analysis in ecommerce analytics?

Accepted Answer

Analyzing groups of customers who share a common characteristic (e.g., acquisition month) over time

Answer

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?

Accepted Answer

Total marketing and sales spend ÷ number of new customers acquired

Answer

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?

Accepted Answer

Which marketing touchpoints receive credit for contributing to a conversion

Answer

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?

Accepted Answer

A step-by-step view of how users progress through the purchase process and where they drop off

Answer

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?

Accepted Answer

The percentage of customers who make more than one purchase

Answer

RPR = Customers with 2+ purchases ÷ Total Customers; a high RPR indicates strong customer loyalty and retention.

Ecommerce Practice Test