What are the most important KPIs for a Junior Business Analyst to track in E-commerce?

All answers to this question.

Welcome to the field! For E-commerce, the "Holy Trinity" is CAC (Customer Acquisition Cost), LTV (Lifetime Value), and AOV (Average Order Value). If your CAC is higher than your LTV, the business is "buying" growth at a loss. A great leading indicator is the "Cart Abandonment Rate" paired with "Checkout Completion." If you see abandonment spike, it usually means there is a technical glitch or a new shipping fee that is scaring people off. Also, keep an eye on "Repeat Purchase Rate"—it’s much cheaper to keep an old customer than to find a new one.

   Answered 2024-02-07 by Nancy Young

Are you segmenting these KPIs by traffic source? I’ve seen teams celebrate a high AOV, only to realize it was driven by a single influencer post that isn't repeatable.

   Answered 2024-02-09 by Joseph King

• Joseph is right on. You need to "slice and dice." If your organic traffic has a 3% conversion but your paid ads only have 0.5%, the overall 1.7% "Average" is lying to you. I’d suggest Daniel builds a dashboard that allows the VP to filter by channel. This shows you understand the "Attribution" problem, which is a very senior-level Business Analysis concept.

     Commented 2024-02-10 by Robert Wright

Focus on the "Customer Churn Rate" for your subscription products if you have any. It’s the silent killer of SaaS and E-comm growth.

   Answered 2024-02-12 by Margaret Scott

• Excellent point, Margaret. Churn is often overlooked by juniors who are too focused on new sales.

     Commented 2024-02-13 by Daniel Clark