Ecommerce Ecommerce Analytics and Metrics 1 — Questions and Answers
Question 1: What does CLV (Customer Lifetime Value) measure in ecommerce?
- The total number of orders a customer makes per month
- The total predicted revenue a business can expect from a single customer over the entire relationship (Correct answer)
- The average time a customer stays on a product page
- The percentage of customers who leave positive reviews
Correct answer: The total predicted revenue a business can expect from a single customer over the entire relationship
CLV estimates the total net profit attributable to a customer over the entire duration of their relationship with the business.
Question 2: What is the average order value (AOV) and how is it calculated?
- Total orders divided by number of products; calculated weekly
- Total revenue divided by the number of orders; calculated over a given period (Correct answer)
- Total revenue divided by number of customers
- Most expensive order divided by least expensive order
Correct answer: Total revenue divided by the number of orders; calculated over a given period
AOV = Total Revenue ÷ Number of Orders; it measures how much customers spend on average per transaction.
Question 3: What does a bounce rate represent on an ecommerce analytics dashboard?
- The percentage of orders that are returned
- The percentage of sessions where visitors leave after viewing only one page without any interaction (Correct answer)
- The percentage of email recipients who unsubscribed
- The rate at which product pages fail to load
Correct answer: The percentage of sessions where visitors leave after viewing only one page without any interaction
Bounce rate measures single-page sessions where users leave without engaging further, indicating poor landing page relevance or UX.
Question 4: Which Google Analytics report shows which acquisition channels (organic, paid, social) bring the most conversions?
- Audience Overview
- Behavior Flow
- Acquisition > Traffic Acquisition (Correct answer)
- Real-Time report
Correct answer: Acquisition > Traffic Acquisition
The Acquisition > Traffic Acquisition report in GA4 breaks down sessions and conversions by channel group (organic, paid, direct, etc.).
Question 5: What is the significance of the 'sessions to purchase' metric in ecommerce analytics?
- It measures how many page views occur per checkout
- It shows how many visits a customer makes before completing their first purchase (Correct answer)
- It tracks how long each checkout session takes
- It counts total sessions on product pages only
Correct answer: It shows how many visits a customer makes before completing their first purchase
Sessions to purchase reveals the typical consideration journey — higher numbers suggest customers need more touchpoints before buying.
Question 6: What does the ecommerce metric 'revenue per visitor' (RPV) tell you?
- How much each paid advertising visitor costs
- The average amount of revenue generated per website session or unique visitor (Correct answer)
- The revenue generated by a single product page
- The average revenue per email subscriber
Correct answer: The average amount of revenue generated per website session or unique visitor
RPV = Total Revenue ÷ Total Visitors; it combines conversion rate and AOV into a single efficiency metric.
Ecommerce Ecommerce Analytics and Metrics 1
What does CLV (Customer Lifetime Value) measure in ecommerce?