Do you have an online store?? Want to generate good revenue from your sales?? you did all efforts to increase its conversion rate but still, you didn’t get actual growth of your business. Did you hear about KPIs? Let’s learn about KPIs.


There are many data points that actually one should be tracking. And especially if you are CEO of an E-commerce company then you should track the most important data point. Which are those data points? These data points are considered as Key Performance Indicators (KPI).


If you track these KPIs, you will definitely get actual growth of your business.

Key Performance Indicator is a measurable value that demonstrates how effectively a company is achieving key business objectives. Organizations use KPIs at multiple levels to evaluate their success in reaching targets.

“Don’t optimize every single metric available. Instead, they only optimize the right metrics.”

Let’s see which KPIs should be tracked by CEO of E-commerce company.

  1. Sales Conversion Rate
  2. Website Traffic
  3. Revenue By Traffic Source
  4. Percentage of Returning Customers
  5. Lifetime Value

KPI #1. Sales Conversion Rate

If your store has lots of traffic, but very few out of this traffic will get converted into sales. That doesn’t sound good.

Every ideal E-commerce company should have better conversion rate rather it doesn’t need more traffic, it needs good conversion rate. The conversion rate is nothing but visitors of your store who complete our goal action.


Few ways to segment your conversion rates include:

1. Conversion By Traffic Source:

Check what is the source of your traffic, that means to track which platform is deriving more traffic for your store i.e. Google, Facebook, Reddit etc. where you should be investing in driving traffic, or what channels to focus on improving the targeting or message you’re using for campaigns.

2. Conversion By Device Type:

In overall, the traffic generated by Moblie is much more than other devices like the desktop. So while working on conversion rate, should track which device is generating more traffic for your store.

3. Conversion of new vs. returning visitors:

Obviously, the conversion rate will be high for returning customers as they know your brand, quality. They already trusted your store and that’s why they are coming back to your store.

If they are coming back that means they are your permanent customer, and thus your conversion rate will increase.

Thinking about these segments of conversion rate will always help to decide where should you spend extra or make campaigns for increasing conversion rate.

KPIs #2: Website Traffic

As above KPI, if you are getting better conversion rate then now it’s time to increase traffic to your store. So website traffic is another tracking point for a CEO of the e-commerce company.

You should be able to see your traffic stats from the e-commerce platform that you are using.


Now how to increase traffic??



Social media is the biggest source for getting more traffic. Social media is the big platform for entrepreneurs and marketers to leverage and reach their audience.


Search Engin Optimization is another way to drive traffic. It is the oldest but one of the best way for traffic. SEO is nothing but becoming a favorite in Search engine’s EYE.



Good SEO is helping search engines do their jobs better. If you optimize your on-page SEO, create great content, deliver a fantastic experience to your users, the Google has to rank you.

In general, 35% traffic is generated from search engine optimization. So be careful while doing SEO for your store.



KPIs #3: Revenue By Traffic Source

Most of the time we spend lots of time, efforts, money from different traffic sources, but have absolutely no idea whether they are working.

That’s why it is important to track your Revenue by Traffic Source.

This is a great way to see how different traffic sources contribute revenue:

  • Organic search
  • Email campaigns
  • Referral traffic from blogs or social

How to improve your Revenue??


  • Stop spending time and money on channels which don’t work or don’t show any growth.

Even if your competitors are spending on those channels as every company is different from every another so don’t compare too much which will make the loss of your company.

  • Make double spends on profitable channels

Find which channels and which traffic source generate more traffic, scale up them.

This is time and a place where you can track and invest more to generate more revenue.

KPIs #4: Percentage of Returning Customers

Most of the time we get new customers every time. but we don’t notice that customer is returning back or not. This is the most important part to track how many customers are returning.

Give them extra special offers for next purchases and make them permanent so that the conversion rate will be maintained.

It costs 5x as much to acquire a new customer than to keep an old one. Keeping old customer make your brand more famous and trustable.

How to improve the percentage of returning customers?



Offer Bonus points to the customers for next purchases. Bonus points insist customers for next purchases.




Continuously send newsletters emails to registered customers. Newsletters keep customers in touch. They get daily updates about your store.

And chances of returning customers increases.

KPIs #5: Lifetime Value

Customer lifetime value (LTV) is one of the most important KPIs to track in e-commerce. This is the overall revenue you forecast a customer to bring you during their lifetime or span of time as your customer.

LTV refers to the amount of money each customer is expected to spend on your products and services.

Why is this important?

LTV will allow you to make several important business decisions. like

  • If you know your customer LTV, you will then also know how much you are able to spend to acquire a customer.
  • You will also know how much you are able to spend to service and retain that customer.

So these are top 5 KPIs that every e-commerce company CEO should be tracking. If these data points get followed as per their need then the company will definitely grow.

To know more about KPIs

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