Key Metrics To Track In Multi-Channel Ecommerce

Every head of marketing I talk to is fixated on the same 3 vanity metrics. • Platform ROAS • Repeat sales percentage  • Conversion rate But these aren’t the true indicators of business growth. They account for local optimization – even when they're in the green, they might not impact your business health. Here are 3 metrics you should focus on instead: 1. Instead of platform ROAS, focus on Marketing Efficiency Ratio (MER) Platform ROAS (e.g. Meta reported revenue ÷ Meta ad spend) only tells part of the story. The problem: Add up platform-reported revenue across channels, and you'll often get 2-3x your actual revenue. This is the fundamental error in attribution. All platforms claim conversions for themselves. Marketing efficiency ratio (total revenue ÷ total ad spend) shows true performance because it's objective – real money in versus real money out. 2. Instead of repeat sales %, focus on repeat purchase rate by cohort Repeat sales tells you what portion of this month's sales came from existing customers. It's backward-looking and easily distorted. I recently talked to a brand with 40% of sales coming from repeat customers. Sounds healthy, right? But their cohort retention showed only 10% of customers returned after a year. Not healthy. This brand had been in business for 10 years but wasn't adding many new customers. Their seemingly healthy 40% repeat purchase rate masked an acquisition problem. The problem is that repeat purchase rate combines all historical customers into one bucket, hiding true retention patterns. Cohort retention follows specific customer groups over time, showing exactly how loyal different segments are. 3. Instead of conversion rate, focus on pure revenue growth I constantly get asked: "Is my 0.8% conversion rate good? Is 3% good?" That percentage alone doesn’t tell you much. When traffic grows, conversion rates naturally decline. Some of Polar Analytics 🐻❄️’s most successful clients – doing hundreds of millions in revenue – have conversion rates below 1%. From the outside, that might seem terrible. But they're crushing it because their revenue is growing 2x year-over-year, and that's what matters. Platform ROAS, repeat percentage, and conversation have their place for tactical optimization but won't show your true business health. Marketing efficiency, cohort retention, and revenue growth will. If you need help setting up these metrics, DM me.

You probably track result metrics. But do you track the levers behind them? Everyone wants to grow key metrics: AOV, LTV, etc. However, most dashboards stop there. They show what happened, not what to fix. Here’s what you should be managing: → AOV ↳ Average Discount ↳ Cross-sell Success Rate → Gross Profit ↳ COGS ↳ Net Return Impact → Conversion Rate ↳ Add-to-Cart Rate ↳ Checkout Completion Rate → CAC ↳ Product Page View Rate ↳ Ads CTR → Repeat Purchase Rate ↳ Time Between Purchases ↳ Email Click Rate → CSAT ↳ On-Time Delivery Rate ↳ Ticket Resolution Time → Organic Traffic ↳ Coverage Issues ↳ Keyword Rankings No one grows AOV by watching AOV. And growth comes from managing what’s underneath. This cheat sheet is a reminder: If you want to grow this… manage that. 📌 Save this. Share it with your team. Which of these levers do you track today?

Most eCommerce brands obsess over revenue and ROAS. But the real game is in the metrics no one talks about. Here are 10 overlooked KPIs that actually drive growth (and how to optimize them): ~~ 1. LTV:CAC Ratio (The Ultimate Health Check) LTV:CAC = Customer Lifetime Value ÷ Customer Acquisition Cost 1:1 = You’re bleeding money 3:1 = Healthy 5:1+ = Printing cash If you’re below 3:1, either: ✅ Lower CAC (better targeting, UGC ads, referrals) ✅ Increase LTV (subscriptions, upsells, memberships) == 2. 90-Day Repurchase Rate If a customer doesn’t buy again within 90 days, they probably won’t. Fix it by: • Winback campaigns with targeted incentives • Selling bundles that create habits • Building a loyalty program that rewards repeat buyers == 3. Contribution Margin (What’s Actually Left?) CM = Revenue – (COGS + Shipping + Discounts + Ad Spend) If your CM is under 30%, you’re scaling a business that won’t survive. Get margins up by: • Cutting discount dependency • Negotiating lower fulfillment costs • Adding Onward shipping protection == 4. Subscription Churn Rate (The Silent Killer) High churn = your brand is a leaky bucket Fix it by: • Adding pause & skip options via SMS (Skio for example) • Add more delivery options and product variety • Sending an email 7 days before renewal reminding them potential lost perks == 5. Time to Second Purchase (T2P) Track how long it takes for a customer to place their second order—then cut that time in half. Tactics to speed it up: • AI-based Email/SMS flows with hyper-targeted recommendations • Exclusive discounts for second-time buyers • Reorder reminders based on average usage time == 6. Gross Margin per Order (The Scaling Checkpoint) At scale, 40%+ gross margins keep you profitable. If you're below that: • Increase prices (test 10% bumps) • Reduce discounting, do Cashback instead (@ Onward) • Negotiate better supplier terms (carrier rates, 3pl, etc) == 7. Refund & Return Rate A high return rate = a CAC multiplier. Fix it by: • Charging for returns (but offering free exchanges) • Clearer product descriptions & sizing charts • Post-purchase emails on how to use the product == 8. Organic vs. Paid Revenue Ratio If 60%+ of your sales come from paid ads, you’re in trouble. Brands with real staying power win on organic channels. The fix? • SEO & content marketing • Affiliate & referral programs • Retention tactics (VIP, loyalty, subscriptions) == 8. SKU Concentration Risk If 80%+ of your revenue comes from one product, you’re vulnerable. Great brands expand without overextending. Turn one-time buyers into multi-SKU customers with: • Bundles • Exclusive add-ons • Subscription perks == 9. % of Revenue from Returning Customers A healthy DTC brand makes 40%+ of revenue from repeat buyers. If you’re below that, focus on LTV levers: • VIP memberships • Personalized email/SMS offers • Post-purchase nurture flows Follow Josh Payne for deep dives on DTC, SaaS, and investing.

Top Metrics Every #Ecommerce Company Should Answer - Average Order Value of First Order vs. Recurring Order: Since e-commerce usually struggles with retention, use the Average Order Value (AOV) of the first order to calculate the ROI on ads. Focus on making that first transaction count! - Likelihood to Order Again by Order Occurrence: Measure the probability of a customer making a second purchase and the likelihood of a fifth order after a fourth, etc.... This helps identify where the drop-offs are and determine when customers become loyal. If it takes four orders to hook a customer, then focus on getting to 4 orders and ignore the rest. - 3-Month, 6-Month, and 9-Month LTV by First Product and Order Size: Track the Lifetime Value (LTV) over time based on the initial product purchased and order size. This helps assess the combination of order value and retention, revealing which products drive the highest LTV. Ensure that initial spending isn't too low (risking negative marketing ROI) or too high (which can decrease LTV). - Media Mix Percentage for First Buyers: Determine if your first-time customers are influenced by multiple ads, whether they return organically, or if they switch platforms. This insight is crucial for fine-tuning performance marketing strategies for new customers. (Also can save your data teams months on building a complex media mix attribution that is not needed) - Spend on Converted Customers: With cookies constantly being reset, keep updating your list of converted customers. Despite the promises of Meta and Google, converted customers often still see ads. Ever wonder why you keep seeing ads for products you already bought? These metrics provide significant insights quickly, offering the biggest impact for your e-commerce strategy. What metrics do you find helpful? What am I missing? React with 💡 if you like this kind of content, and I'll share more insights across different industries. #ecomm #data #metrics #bestpractices #ltv #roi