Ecommerce Ecommerce Analytics & Metrics 2

Question 1

What is a cohort analysis in ecommerce customer analytics?

Accepted Answer

Grouping customers who started buying in the same time period and tracking their behavior over time to measure retention

Answer

Cohort analysis reveals retention patterns — for example, whether customers acquired in Q4 have higher LTV than those acquired in Q1.

Question 2

What does the 'purchase frequency' metric measure in ecommerce?

Accepted Answer

The average number of times a customer buys within a given time period

Answer

Purchase frequency is calculated as total orders divided by unique customers in a period; increasing it is a key lever for growing revenue without new customer acquisition.

Question 3

What is the 'return rate' metric and why do high rates hurt ecommerce profitability?

Accepted Answer

The percentage of orders returned — high rates erode margins because return shipping, restocking, and processing add significant costs

Answer

Return rates in US ecommerce average 20–30% and each return can cost merchants $10–30 in logistics and processing, making returns management critical to profitability.

Question 4

What does 'session recording' software like Hotjar or FullStory capture for ecommerce analysis?

Accepted Answer

Video replays of real user sessions showing mouse movements, clicks, and scrolling behavior on the website

Answer

Session recording tools capture anonymized user behavior videos that reveal usability problems invisible in aggregate analytics data.

Question 5

What is 'revenue per visitor' (RPV) and how does it differ from conversion rate?

Accepted Answer

RPV = Total revenue ÷ Total visitors — it combines conversion rate AND average order value into a single efficiency metric

Answer

RPV is more comprehensive than conversion rate because a store could have a high conversion rate but low AOV, resulting in low RPV and vice versa.

Ecommerce Practice Test

Ecommerce Practice Test

Ecommerce Ecommerce Analytics & Metrics 2