- eCommerce

Metrics For eCommerce Application Analytics

Any business that operates in the mobile commerce market needs analytics. On its basis, goals are set, the development strategy is adjusted, the success of advertising campaigns and the efficiency of business processes are assessed. We tell you the data you need to analyze in order for your eCommerce application to generate the desired revenue.

How to evaluate the work of an eCommerce application

To understand how successful your online store is, to see its weak points and growth points, it is important to collect and analyze objective data about its work.

In each case, the set of indicators may be different. For example, if you launch a system that should stimulate additional purchases, then you need to track the number of orders and the income received. If you share promo codes for discounts, you need to monitor the number of their activations.

At the same time, there are a number of key metrics that are important for any business. They can be divided into four groups based on the steps taken by the online store’s client. These are attraction, retention, sales and repeat sales. Some indicators are better tracked daily, while others will help in making important strategic decisions from a long-term perspective.


  • The cost of attracting a new customer, or Customer Acquisition Cost (CAC)

This is one of the most important metrics that allow you to understand how effective your marketing strategy is. It shows the amount you spend on attracting one “paying” customer – the one who does not just go into the application but makes a purchase. To calculate the CAC, you need to divide the cost of the advertising campaign by the number of orders made by new users during the period of its implementation.

  • Cost Per Install (CPI)

This is the amount you spend to attract a new user to your app, regardless of whether he makes a purchase or not. It is calculated as the ratio of the cost of advertising the app to the number of successful installations. In fact, this metric is similar to the cost per click, which site owners pay for the user to go to their site after the ad is shown.

  • Revenue Per Install (RPI)

The metric shows the amount you receive with one successful application installation. It can be calculated by dividing the total revenue for the period of the advertising campaign by the number of installations.

  • Click-To-Install Rate (or simply Install Rate)

This indicator shows how link clicks on your ad banner are converted into the actual installation of the app. It is calculated as the ratio of the number of successful installations to the total number of clicks. Typically, the resulting value is multiplied by 100 to see the result in percent.

The industry average is considered to be the Install Rate in the range of 1–4%. This means that if you run a pay-per-click advertising campaign, you need to consider that for one successful installation you will need 25-100 clicks.

Engagement and retention

  • Conversion Rate, or Conversion Rate (CR)

Conversion shows the percentage of users of the app who made the purchase. From the moment of installation to placing an order, you need to go through a series of steps, or stages of the sales funnel, and at each of them, some of the potential buyers are eliminated. Some do not even go to the catalog, others are limited to viewing products, others add something to the basket, but do not complete the purchase process.

The average conversion rate for a purchase varies considerably depending on the specific area (for example, for books it is higher than for electronics), so it’s better to compare it with specific figures in your industry. If your online store has a wide range, it makes sense to count the conversion separately for different product groups.

  • Abandoned Basket or Shopping Cart Abandonment

This metric shows the percentage of users of the mobile app that added a product to the cart but did not complete the ordering process. As a rule, most of them were really ready to make a purchase but were distracted or changed their minds at the last moment

The share of abandoned baskets is especially important to consider if the conversion is generally low or attracting new users is too expensive. But in any case, reducing the proportion of abandoned baskets is one of the main success factors for your business. In the case of apps, send notifications about forgotten products are considered one of the most effective ways.


  • Average Order Value (AOV)

The average cost of the order is one of those indicators that are important in the long term. It is calculated as the ratio of total income received from sales or fulfillment of orders to the total number of these orders over a certain period of time.

Knowing AOV, you can predict the revenue of your store, given the conversion and the number of users, as well as adjust the development strategy. If the average check is low, then it may be more profitable for you to stimulate its increase, rather than attract as many new customers as possible.

  • Cost Revenue Ratio (CRR)

This metric shows the relationship between the amounts spent and gained. To calculate it, you need to divide the cost of marketing costs on total revenue. The lower the CRR, the more successful the business.

You can change the numerator and the denominator in places, and then you get a Return on Advertising Spend (ROAS), that is, the payback on advertising costs.

Repeat Sales

  • Customer Lifetime Value (LTV)

The metric shows the value of the customer during its life cycle, that is, the total amount of money that the customer spends as long as he remains your customer. This metric is important to consider in comparison with CAC – the cost of attracting customers. Obviously, companies need to earn more on their customers than spend on attracting them.

  • Outflow

This metric shows the percentage of users who make a single purchase and no longer return to place an order using your application. High outflow is one of the main reasons why your business may have a low LTV.

Repeated sales always cost the company less than attracting new customers, so it is important to control the outflow and work on reducing it.

Don’t just contract your app development to an app development company, always evaluate the progress of your eCommerce application.

Author Bio:

Melissa Crooks is Content Writer who writes for Hyperlink InfoSystem, one of the leading app development companies in New York, USA & India that holds the best team of app developers who are expert in Android and iPhone app development. She is a versatile tech writer and loves exploring the latest technology trends, entrepreneur and startup column.

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