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Retail Analytics Glossary
The most important retail analytics terms explained.
A/B Testing is a method used in ecommerce to compare two versions of a webpage or element to determine which one performs better in terms of conversion or engagement.
The cost incurred by a business to acquire customers or bring in new leads, which is relevant in ecommerce as it influences the profitability and success of an online business.
Add To Cart Rate
The percentage of website visitors who add items to their online shopping cart before making a purchase.
Average Order Value (AOV)
The average amount of money spent by customers in each transaction on a particular ecommerce platform.
Average Revenue Per Paying User (ARPPU)
The average amount of revenue generated by each paying user in an ecommerce business.
Average Revenue Per User (ARPU)
The average amount of revenue generated by each user in an ecommerce platform.
Average Session Duration
The average amount of time a user spends on a website or platform during an ecommerce session.
Average Time To Conversion
The average duration from when a website visitor first interacts with a product or service online to when they make a purchase, providing insights into the efficiency of an ecommerce platform.
Average Transaction Value
The average monetary value of each transaction conducted in an ecommerce business.
The practice of categorizing customers based on their online behavior to personalize marketing strategies in ecommerce.
Bounce Rate refers to the percentage of website visitors who navigate away from a page after viewing only one page, which is relevant in analyzing user engagement and conversion rates in ecommerce.
Cart Abandonment Rate
The percentage of online shoppers who add items to their shopping cart but do not complete the purchase.
Checkout Conversion Rate
The percentage of website visitors who successfully complete a purchase at the online checkout stage.
Click-Through Rate (CTR)
Click-Through Rate (CTR) is a metric that measures the percentage of users who click on a specific link or ad, commonly used in ecommerce to evaluate the effectiveness of online campaigns and drive website traffic.
Cohort Analysis is a method used in ecommerce to track and analyze the behavior of specific groups of customers over time to gain insights and make informed business decisions.
Competitive benchmarking is the process of comparing a company's performance metrics, strategies, and practices against its competitors' in order to identify areas of improvement and gain a competitive edge in the ecommerce industry.
Consumer Behavior Analysis
The process of examining and studying the actions and decision-making processes of customers to gain insights and improve strategies in ecommerce.
Conversion Rate Optimization (CRO)
Conversion Rate Optimization (CRO) is the process of improving the percentage of website visitors who take a desired action, such as making a purchase, ultimately increasing online sales.
Cost Per Acquisition (CPA)
The amount of money spent on advertising or marketing to acquire a customer or complete a desired action in e-commerce.
Cost Per Click (CPC)
Cost Per Click (CPC) is a metric used in online advertising to measure the amount an advertiser pays for each click on their ad, commonly used in ecommerce to assess the effectiveness of campaigns in driving traffic to a website or landing page.
Cost Per Lead (CPL)
The cost incurred for acquiring a single lead through marketing efforts in ecommerce.
Cross-selling is a sales technique in ecommerce where additional products or services are recommended to customers based on their initial purchase, aiming to increase sales and enhance customer satisfaction.
Customer Acquisition Cost (CAC)
The cost incurred by a business to acquire one new customer, commonly used in ecommerce to measure marketing effectiveness.
Customer Acquisition Rate
Customer acquisition rate refers to the speed or efficiency at which an ecommerce business gains new customers.
Customer Behavior Analytics
Analyzing customer behavior data to gain insights and improve e-commerce strategies.
Customer Churn Rate
The percentage of customers that stop doing business with a company within a certain period, which can be important for measuring customer retention and growth in an ecommerce platform.
Customer Engagement Rate
The measurement of how actively customers interact and participate with an ecommerce platform.
Customer Journey Analytics
Customer Journey Analytics is the process of collecting and analyzing data to understand and optimize the entire shopping experience of customers in an ecommerce website.
Customer Journey Mapping
Customer journey mapping is the visual representation of a customer's experience and interactions with a business throughout the entire ecommerce process.
Customer Lifetime Value (CLV)
The predicted monetary value a customer will generate for a company over the entire duration of their relationship, helping businesses understand the long-term profitability of each customer and make informed decisions regarding marketing and customer retention strategies in the context of ecommerce.
Customer Loyalty Program
A marketing strategy aimed at encouraging customers to continue purchasing from a specific ecommerce platform by offering rewards or incentives.
Creating detailed profiles of customers, including demographics, preferences, and behaviors, to better understand and target them in ecommerce.
Customer Retention Rate
The percentage of customers that a business successfully retains over a specific period, which is crucial for maintaining a loyal customer base and driving long-term profitability in ecommerce.
Customer Satisfaction Rate
A measure of how happy and content customers are with their overall experience and interactions with a particular ecommerce business.
Customer Satisfaction Score (CSAT)
A measurement of how satisfied customers are with their overall experience in making an online purchase on an ecommerce platform.
The process of dividing a customer base into distinct groups based on shared characteristics and behaviors to better tailor marketing strategies and improve customer experience in ecommerce.
Customer touchpoints are the various interactions and contact points that a customer has with a business throughout their ecommerce journey, including browsing the website, making a purchase, and receiving customer support.
Customer Value Proposition
A unique selling point or benefit that a business offers to its customers, influencing their perception and decision to engage in ecommerce activities with that particular business.
Daily Active Users (DAU)
The number of unique users that engage with a particular ecommerce platform or website on a daily basis.
Data Transformation is the process of converting raw data into a useable format, often applied in ecommerce to standardize and integrate diverse datasets from various sources.
The representation of data in a visual format to gain insights and communicate information effectively, such as analyzing sales trends and customer preferences in ecommerce.
Making informed decisions based on analysis of data in order to improve performance and achieve desired outcomes, such as optimizing online marketing strategies in ecommerce.
Data-driven marketing is a strategy that uses customer data and analytics to make informed decisions and personalize marketing efforts in the context of ecommerce.
The process of attracting and stimulating consumer interest and engagement with the aim of driving sales and revenue in the context of ecommerce.
Descriptive analytics in ecommerce involves analyzing historical data to gain insights and understand trends, helping businesses make informed decisions and improve their operations.
Dwell Time Analysis
Dwell Time Analysis is a method of measuring the amount of time users spend on a website or specific page, helping ecommerce businesses understand user engagement and improve website conversion rates.
Dynamic Pricing is a pricing strategy used in ecommerce where prices are continuously adjusted based on real-time market conditions, demand, and customer behavior.
Ecommerce Conversion Rate Optimization
The process of improving the percentage of visitors to an ecommerce website who make a purchase or complete a desired action, such as signing up for a newsletter or adding items to their cart.
An ecommerce platform is a software solution that enables businesses to build and manage their online stores to sell products or services.
The engagement rate is a measure of how actively involved and interested users are with a particular ecommerce website or social media platform, typically calculated by dividing the number of interactions or actions taken by users by the total number of visitors or followers.
Exit Intent Popup
A feature on an ecommerce website that displays a popup message before a user leaves the site, often offering a discount or incentive to encourage them to stay and complete a purchase.
Exit rate is a metric that measures the percentage of visitors who leave a website or online store after viewing a specific page or step in the purchasing process, indicating potential areas of improvement for conversion rate optimization in ecommerce.
Gross Merchandise Volume (GMV)
Gross Merchandise Volume (GMV) refers to the total value of goods sold through an ecommerce platform within a specific period.
Gross Profit Margin
The percentage of revenue left after deducting the cost of goods sold, indicating the profitability of a business in e-commerce.
The total amount of money generated from sales before deducting expenses in an ecommerce business.
The additional sales generated as a result of implementing a specific ecommerce strategy or tactic, contributing to the overall growth and success of an online business.
Inventory Turnover Rate
The inventory turnover rate is a measure that indicates the number of times inventory is sold and replaced within a specific time period in ecommerce.
Key Performance Indicator (KPI)
A measurable value that demonstrates the effectiveness and efficiency of achieving ecommerce objectives.
Lifetime Customer Value (LCV)
Lifetime Customer Value (LCV) is a metric used to determine the total profit generated by a customer over the duration of their relationship with an ecommerce business.
The long-lasting commitment and repeat patronage of customers in ecommerce.
Lifetime Value (LTV)
The predicted revenue a customer will generate throughout their entire relationship with an ecommerce business.
Lifetime Value Per User (LTV/U)
The average monetary value that a customer brings to a business over the course of their relationship, which is crucial for evaluating and improving ecommerce profitability.
Long-tail searches refer to specific and less common keyword phrases that potential customers use when searching for niche products in ecommerce.
A lookalike audience is a group of potential customers who share similarities with existing customers and are targeted for marketing purposes, often used in ecommerce to find similar individuals who are likely to be interested in a product or service.
The additional cost incurred by producing one more unit of a product or service in relation to ecommerce.
Marketing attribution refers to the process of identifying and assigning value to various marketing channels or touchpoints that contribute to a conversion in ecommerce, enabling better decision-making in optimized marketing strategies.
Marketing Funnel Metrics
Marketing funnel metrics are quantitative measurements used to track and analyze the effectiveness and efficiency of an ecommerce store's marketing strategies in converting potential customers into actual buyers at different stages of the sales funnel.
Marketing Key Performance Indicators (KPIs) are measurable metrics used to assess the effectiveness and success of marketing strategies in achieving ecommerce objectives.
Net Revenue Retention
Net revenue retention is a metric that measures the ability of a company to retain and grow its existing customers, indicating the percentage of revenue retained from existing customers after accounting for churn, upgrades, and downgrades.
The act of a user leaving a website without completing a purchase or any other desired action, often resulting in lost sales for ecommerce businesses.
Paid Search Advertising
Paid search advertising refers to the method of displaying targeted ads in search engine results pages by paying a fee, commonly utilized in ecommerce to increase website traffic and drive conversions.
A method of analyzing user behavior on a website or online store to optimize the customer journey and enhance conversions in ecommerce.
Point Of Sale (POS)
A point of sale is a system used to process transactions and track sales in a retail environment, often used in ecommerce to manage online sales and inventory.
Using data and statistical algorithms to make informed predictions about future consumer behavior and optimize ecommerce strategies.
A measure of how consumers respond to changes in the price of a product, indicating the impact on demand and revenue in ecommerce.
Product Analytics is the process of collecting and analyzing data related to ecommerce products to gain insights on their performance and optimize their effectiveness.
Product bundling is the marketing strategy of offering multiple products or services together as a package to increase sales and enhance the shopping experience in ecommerce.
The process of helping online shoppers find relevant and desirable products through search, recommendations, or browsing.
Product Feed Optimization
The process of optimizing product data and structure to enhance visibility and performance in online marketplaces, ultimately improving sales and conversions.
Product Listing Optimization
Optimizing product listings on ecommerce platforms to boost visibility and increase sales.
Product Margin is a measure of profitability that represents the difference between the selling price of a product and the cost of producing or acquiring it, often used in ecommerce to determine the profitability of individual products.
Product Performance Analytics
The analysis of data regarding product performance in order to optimize ecommerce strategies and decision-making processes.
Purchase Conversion Rate
The purchase conversion rate is a percentage that measures the effectiveness of an ecommerce website in converting website visitors into customers.
Purchase intent refers to the likelihood or intention of a consumer to make a purchase, which is essential in informing e-commerce marketing strategies and conversion optimization techniques.
Quantitative analysis involves the use of mathematical and statistical methods to make data-driven decisions in ecommerce, such as analyzing sales data to determine optimal pricing strategies.
Real-time analytics is the process of analyzing and interpreting data in real-time as it is generated, allowing businesses to make immediate decisions and improvements to their ecommerce operations.
Referral traffic refers to the visitors who are directed to a website through external links from other websites, which can be crucial for driving sales in ecommerce.
Remarketing is a digital marketing strategy that targets individuals who have previously interacted with a website or online store, with the aim of enticing them to make a purchase or take another desired action.
Repeat Purchase Rate
The percentage of customers who make multiple purchases from an online store over a specified period of time, indicating customer loyalty and satisfaction.
Return On Advertising Spend (ROAS)
Return On Advertising Spend (ROAS) is a metric that measures the effectiveness of advertising campaigns by calculating the revenue generated for each dollar spent on advertising.
Return On Investment (ROI)
Return on Investment (ROI) is a measure used to evaluate the profitability of an investment, which can be relevant in assessing the success of ecommerce strategies.
Revenue Attribution is the process of determining and assigning the sources or marketing efforts that result in generating revenue in e-commerce.
The process of maximizing profits and revenue through various strategies and techniques, such as pricing, promotions, and product placement, in the context of ecommerce.
Revenue Per Click (RPC)
The average amount of revenue generated per click on an ecommerce platform.
Revenue Per Visitor (RPV)
A measure of the average amount of money generated per visitor in an ecommerce business.
A comprehensive financial document that provides an overview of the income generated through ecommerce activities.
ROI Analysis is a method used to evaluate the efficiency and profitability of an investment in an ecommerce business.
Sales Conversion Funnel
A step-by-step process that guides potential customers through their journey from visiting an online store to making a purchase.
A method used to predict future sales based on historical data and market trends, crucial for planning inventory, managing supply chain, and making informed business decisions in ecommerce.
Sales Funnel Analysis
A process of analyzing the customer journey through various stages to optimize sales and conversions in an ecommerce business.
Scroll Depth Tracking
A tracking method used to measure how far down a webpage users scroll, which can be applied to understand user behavior and engagement in ecommerce.
Search Query Analysis
Analyzing and evaluating search queries to understand user intent and improve search results and marketing strategies in an ecommerce context.
The amount of time a user spends on a website during a single visit, which can help measure engagement and potential conversion rates for ecommerce.
Time On Page
The amount of time a user spends on a specific webpage, which can be used to analyze engagement and user behavior in an ecommerce context.
Time On Site
The amount of time a user spends on a website or online store browsing products and engaging with content, which can indicate their level of interest and potential for conversion.
Total Addressable Market (TAM)
The total revenue opportunity available to an ecommerce business across all potential customers and segments.
The number of distinct individuals who visit a website or online store within a specific time period, providing insights into the reach and popularity of the ecommerce platform.