Skip to main contentTLDR
Quick Summary: Conversion metrics measure how well your funnels turn visitors into customers and revenue. Key metrics include conversion rate, average order value (AOV), earnings per click (EPC), and customer lifetime value.
Most Important: Conversion Rate (% of visitors who buy), AOV (average purchase amount), and EPC (revenue per visitor) are your core performance indicators.
Bottom Line: Higher conversion rates and AOV mean more revenue from the same traffic. Focus on these metrics to optimize your funnel performance.
Related Guides: For advertising metrics, see Ad Spend Metrics. For video engagement, see Video Metrics. For detailed user behavior tracking, see Tracking Metrics.
Core Conversion Metrics
Conversion Rate
What it is: The percentage of visitors who complete a purchase
How it’s calculated: (Number of customers ÷ Number of visitors) × 100
Example: 1,000 visitors, 50 purchases = 5% conversion rate
Why it matters:
- Your most important metric for funnel performance
- Small improvements have big revenue impact
- Industry average is typically 1-3% for e-commerce
Good benchmarks:
- 1-2%: Needs improvement
- 3-5%: Good performance
- 5%+: Excellent performance
Sessions vs Customers
Sessions: Total number of website visits (including repeat visitors)
Customers: Unique individuals who made a purchase
Why both matter: Sessions show traffic volume, customers show actual buyers. The ratio between them is your conversion rate.
Average Order Value (AOV)
What it is: The average amount customers spend per purchase
How it’s calculated: Total revenue ÷ Number of orders
Example: 10,000revenuefrom100orders=100 AOV
Why it matters:
- Directly impacts revenue without needing more traffic
- Easier to increase than conversion rate
- Shows effectiveness of upsells and cross-sells
Ways to improve:
- Add upsells and cross-sells
- Bundle products together
- Offer volume discounts
- Increase product prices strategically
Revenue Metrics
Gross Revenue
What it is: Total sales amount before any deductions
Includes: All product sales, shipping, taxes, and fees
Use for: Understanding total business volume
Net Revenue
What it is: Revenue after deductions like refunds, chargebacks, and fees
More accurate for: Actual money you keep from sales
Why it’s important: Shows true business performance after costs
Earnings Per Click (EPC)
What it is: Average revenue generated per website visitor
How it’s calculated: Total revenue ÷ Total clicks/visits
Example: 5,000revenuefrom1,000clicks=5.00 EPC
Why it’s crucial:
- Shows true value of your traffic
- Helps determine profitable advertising spend
- Compares performance across different traffic sources
Types:
- Gross EPC: Before any deductions
- Net EPC: After refunds and fees (more accurate)
Advanced Metrics
Customer Acquisition Cost (CAC)
What it is: How much you spend to acquire one customer
How it’s calculated: Total marketing spend ÷ Number of new customers
Example: 1,000adspend,50newcustomers=20 CAC
Why it matters: Must be less than customer lifetime value to be profitable
Lifetime Value (LTV)
What it is: Total revenue a customer generates over their relationship with you
Includes: Initial purchase + repeat purchases + upsells
Key ratio: LTV should be 3-5x higher than CAC for healthy business
Traffic and Engagement Metrics
Note: For detailed ad spend metrics including ROAS, CPC, CPA, and CTR, see our Ad Spend Metrics guide.
Add to Cart Rate
What it is: Percentage of visitors who add products to their cart
Shows: Interest level in your products
Typical range: 5-15% depending on industry
Cart Abandonment Rate
What it is: Percentage of people who add to cart but don’t complete purchase
How it’s calculated: (Carts created - Purchases) ÷ Carts created × 100
Industry average: 60-70% (meaning 30-40% complete purchase)
Checkout Completion Rate
What it is: Percentage of people who complete purchase after starting checkout
Target: 85%+ completion rate
Low rates indicate: Checkout process issues, unexpected costs, or technical problems
Understanding Your Data
High-performing funnels typically have:
- Conversion rate: 3-8%
- AOV: $75-200+ (varies by industry)
- EPC: $2-10+
- Cart completion: 85%+
- ROAS: 4:1 or higher
Red Flags to Watch For
- Conversion rate under 1%
- High traffic but low revenue
- Declining AOV over time
- High refund rates
- Poor mobile performance
Seasonal Considerations
- Holiday seasons typically show higher AOV
- Summer months may have lower conversion rates
- Back-to-school and Black Friday are peak periods
- Plan campaigns around these patterns
Improving Your Metrics
Boost Conversion Rate
- Improve page load speed
- Add customer testimonials and reviews
- Simplify checkout process
- Test different headlines and offers
- Add urgency and scarcity elements
- Optimize for mobile devices
Increase Average Order Value
- Offer product bundles
- Add “frequently bought together” suggestions
- Create volume discounts
- Implement one-click upsells
- Show related products
- Offer free shipping thresholds
Optimize Traffic Quality
- Target more specific audiences
- Use negative keywords in ads
- Focus on high-intent traffic sources
- Improve ad copy and targeting
- Test different traffic sources
Tracking and Monitoring
Daily Monitoring
Check these metrics daily:
- Conversion rate
- Revenue
- Traffic volume
- Major funnel steps
Weekly Analysis
Review these weekly:
- AOV trends
- Traffic source performance
- Campaign ROAS
- Customer acquisition costs
Monthly Deep Dive
Analyze monthly:
- Customer lifetime value
- Seasonal trends
- Funnel optimization opportunities
- Competitive performance
Common Questions
”What’s a good conversion rate for my industry?”
Conversion rates vary widely by industry, traffic source, and price point. Focus on improving your own baseline rather than comparing to others.
”Should I focus on more traffic or better conversion rate?”
Generally, improving conversion rate is more cost-effective than buying more traffic. A 1% improvement in conversion rate often has bigger impact than 20% more traffic.
”How do I know if my AOV is good?”
Compare your AOV to your customer acquisition cost. If AOV is 3-5x higher than CAC, you’re in good shape.
”Why do my metrics fluctuate so much?”
Daily fluctuations are normal due to traffic patterns, seasonality, and external factors. Focus on weekly and monthly trends instead of daily changes.
Getting More Help
For assistance with:
- Setting up conversion tracking
- Interpreting your specific metrics
- Creating optimization strategies
- Troubleshooting tracking issues
Contact our support team or explore our detailed optimization guides. 