E-Commerce Key Performance Indicators

Your eCommerce funnel is the process by which a visitor converts into a customer.

It's essential to understand that while your traditional brick-and-mortar businesses follow a customer journey, an eCommerce store follows an entirely different one.

As there are different activities that need to be completed, there are different performance indicators along the way to help you identify where improvements can be made and whether or not your business is performing well.

By calculating the top, middle and bottom of your Ecommerce funnel, you're able to view your data in real time. If you've never calculated your KPIs before, it can get confusing quickly so here's a brief overview of what each section involves.

Top of the Funnel KPI

Unique Ad CTR - 1% Minimum

If it's below 1%, check copy, creative or targeting of your ads. Your message is not resonating with your audience

Landing Page CR - 30%

If you achieve 25% that is okay. Anything below 25% should be improved. If you get 10% CR, then you are leaving tons of money on the table.

CPA Lead - This can not be generally answered as this highly depends on market, language, platform & industry. 

Everything at $4 and below is great. $6-7 is when we start to optimize but it's still okay. The range of $8-10 per lead hurts but our funnel can operate at a profit if optimized well. At $10+ it's usually not profitable anymore.

Try new creatives, ad copy, and targeting. Optimize landing page conversion rate. If you can not make it workout on one platform, switch platform (for example from Facebook to YouTube). If PPC as a channel is not working out, switch channel - for example produce content for organic traffic etc.

Middle of the Funnel KPI

Avg. Email Open Rate - 30%+

Should be around 30% for emails after sign-up within the first 30 days. If it's below that, check your subject line immediately. Is everyone double-optin? 

Avg. Email CTR - 3-4%

If it's below 3%, you can improve. If you have below 1% you have a problem. Ideas to improve are implementing open loops, frequency selectors, better stories and content inside your emails. Also consider that links to sales pages will always be lower than links to educational content.

Bottom of the Funnel KPI

Sales Page to Checkout CTR - 10%+

Go over the copy on your sales page. Make sure you get the right traffic to your sales page. Add social proof. Make sure you hit the right beliefs and that your offer, avatar and positioning strategies are aligning.

Sales CR - 1-5%

If your sales CR is between 0.5-1.5%, there is def. room for improvement. More important than sales CR is ROI though. If your ROI is 2-3X or more but your sales CR is low, let's say 0.5%, you're still doing great! If you are not profitable and your sales CRT is low, then you would have to look at the biggest problem inside your funnel and fix that. Once that is fixed, you fix the next one. Take it step-by-step.

If after fixing you still don't get your funnel to work, you could try to change your sales conversation event. For example, you could change from sales page to webinar or sales call. If that still does not work you have an offer strategy problem. Re-work your offer, your avatar, your positioning and your pricing.

CPA Customer - 30% of Purchase Price

30% of purchase price or Customer Lifetime Value.

ROAS - Goal: 300% (3x), Good: 2x, Problem: 1-2x, Emergency: <1x

Often ROI is generated through upsells and value ladders. If you sell a digital product with CLV < $100, you will struggle to break even. You would need to change your offer strategy and attach some upsell funnels. If you sell digital products and services, the revenue of digital products can be used to pay for your PPC costs while profits are generated through your service sales.