KPI Examples & Definitions
Add-to-Cart Rate
Add-to-Cart Rate measures the proportion of website visitors who take the initial step toward purchasing by adding a product to their shopping cart.
Average Order Value (AOV)
Average Order Value (AOV) measures the average amount spent on each transaction during a specific period.
Average Revenue Per User (ARPU)
Average Revenue Per User (ARPU) measures the revenue generated by each customer over a given time period, commonly monthly or annually.
Cart Abandonment Rate
Cart Abandonment Rate quantifies the percentage of online shoppers who add products to their cart but exit without completing the purchase.
Checkout Abandonment Rate
The Checkout Abandonment Rate indicates the percentage of online shoppers who leave a site during the checkout process without finalizing the purchase.
Conversion Rate
Conversion Rate measures the percentage of leads or visitors to a website or application who take a desired action, such as making a purchase or filling out a form.
Customer Acquisition Cost (CAC)
Customer Acquisition Cost, commonly known as CAC, represents the total expenses a business incurs to acquire a new customer.
Customer Churn
Customer Churn refers to the percentage of customers who end their relationship with a business during a specific time frame.
Customer Retention Rate (CRR)
Customer Retention Rate (CRR) is the percentage of customers a business retains over a set time frame.
Customer Satisfaction Score (CSAT)
Customer Satisfaction Score (CSAT) gauges the level of satisfaction a customer experiences with a product, service, or interaction.
Customer Service Response Time
Customer Service Response Time is the interval from a customer's inquiry to the brand's response, measuring communication speed and effectiveness.
Gross Profit
Gross Profit reflects sales profit after direct production costs are subtracted from revenue.
Gross Sales
Gross Sales represents total revenue before deductions for discounts, returns, and allowances.
Lifetime Value
The revenue customers generate over their entire relationship with a brand.
Net Present Value
Net Present Value (NPV) evaluates investment profitability by comparing the difference between cash inflows and outflows.
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