Ecommerce Ecommerce Analytics and Metrics

Question 1

What does CLV (Customer Lifetime Value) measure in ecommerce?

Accepted Answer

The total predicted revenue a business can expect from a single customer over the entire relationship

Answer

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?

Accepted Answer

Total revenue divided by the number of orders; calculated over a given period

Answer

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?

Accepted Answer

The percentage of sessions where visitors leave after viewing only one page without any interaction

Answer

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?

Accepted Answer

Acquisition > Traffic Acquisition

Answer

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?

Accepted Answer

It shows how many visits a customer makes before completing their first purchase

Answer

Sessions to purchase reveals the typical consideration journey — higher numbers suggest customers need more touchpoints before buying.

Ecommerce Practice Test