eCommerce Marketing eCommerce Analytics and Performance Measurement 2

Question 1

What is 'cohort analysis' in eCommerce analytics?

Accepted Answer

Analyzing groups of customers who share a common characteristic (e.g., acquisition month) over time to understand retention and LTV trends

Answer

Cohort analysis groups customers by a shared starting event (like first purchase date) and tracks their behavior over time, revealing retention patterns and how different acquisition cohorts compare.

Question 2

What is 'traffic source analysis' in eCommerce and why is it important?

Accepted Answer

Understanding which marketing channels (organic search, paid, email, social) drive the most visitors and revenue to optimize budget allocation

Answer

Traffic source analysis shows which channels deliver the most valuable visitors, enabling data-driven decisions about where to invest marketing budget for the best ROI.

Question 3

What does 'session duration' measure in eCommerce analytics?

Accepted Answer

The average amount of time users spend on the website during a visit

Answer

Session duration measures how long users engage with your site per visit; longer sessions on product and category pages often correlate with higher purchase intent and conversion rates.

Question 4

What is 'new vs. returning visitor' segmentation used for in eCommerce analytics?

Accepted Answer

Understanding the difference in behavior and conversion rates between first-time and repeat visitors to tailor marketing strategies

Answer

Segmenting new vs. returning visitors reveals different conversion rates and behaviors, allowing marketers to personalize experiences — acquisition-focused for new visitors, retention-focused for returning ones.

Question 5

What is 'product performance reporting' in eCommerce analytics?

Accepted Answer

Analyzing which products drive the most revenue, views, add-to-cart events, and conversions to optimize the catalog

Answer

Product performance reports analyze key metrics per SKU — revenue, views, conversion rate, and units sold — helping identify bestsellers, underperformers, and catalog optimization opportunities.

eCommerce Marketing Practice Test

eCommerce Marketing Practice Test

eCommerce Marketing eCommerce Analytics and Performance Measurement 2