Key KPI’s to Measure in an E-Commerce App

Posted on May 23/05/18

Without doubt e-Commerce, mobile apps have truly begun to outpace traditional e-commerce. Currently, apps drive 52% of all mobile transactions and convert 20% more than desktop. With mobile commerce expected to grow at a rate 300% faster than traditional e-Commerce, retailers are quickly starting to realize that they need to allocate more focus and resources towards mobile, particularly apps.

So how do you keep your e-commerce app up to pace with the rapidly growing market? By measuring the right KPI's you can be ahead of your competitors.

That is why, in this blog, we have covered few KPI's to measure on an e-commerce mobile applications.


Why do you need to track?

Tracking MAU (monthly active users), Weekly Active Users (WAU), DAU (daily active users) and stickiness (DAU/MAU) are few of the most critical metrics for a better understanding of your app usage.

You can also segment your users by demographics, device, gender, age, season and more for analyzing how and which users interact with your app.

What Insights do you get?

1. Get insight into your user base, usage trend and what they like and what they don't about your app.

2. Once you know how your users are using your app, you have a better chance of improving the user engagement.

3. Better understanding means highlighting the areas that need improvement (i.e. the areas which are bottlenecks in a funnel and untapped markets.)

4. Segmenting helps you investigate on drop-offs more closely and take corrective measures.

The chart displays the details of DAU, MAU, WAU, total active users and total session count. It also displays the new and existing user count.

2.Session Length

Why do you need to track?

Session length is the time user spends in your app in one session, performing different actions and then finally exits.

There is no general formula for calculating session length as it varies from business to business and across different verticals.

What Insights do you get?

1. Measuring session lengths and analyzing them based on segments will help marketers to plan their campaigns better.

2. Developers can understand what changes trigger a change in session lengths and how it impacts business. (Like if a checkout process is too complicated, users might be dropping off at that point, negatively impacting your session length.)

3. Segmenting will help you identify your paying users and non-paying users who are less engaged.

The chart displays the session completed by the user and their count for a time frame.

3. Time in App

Why do you need to track?

The total amount of time a user spends on your app in a given interval of time is the Time in App. Keep in mind that the session duration is different from Time in App.

What Insights do you get?

1. Time in App is an indicator of how well your users are engaged and like your app. The more the time in the app, the more they like your app.

2. This helps in determining the performance of the app and directing towards optimization.

3. Segment the users for a better understanding of user behavior, preferences and funnels of choice.

4. Retention Rate

Why do you need to track?

Retention basically means the percentage of users returning to your app in a given period of time. Calculating retention rate over a period of 1, 7 or 30 days helps determine its longevity in the market.

What Insights do you get?

1. Retention rates let you keep an eye on what’s working and what needs improvement. It’s a continuous process that should begin after any significant changes in your app to reflect changes in the user retention.

The chart displays the cohort analysis value of user on basis of days, weeks and months for a specific time frame.

5. Goal Conversion Rate

Why do you need to track?

Goal Conversion Rate means the total number of goals completed per user visit. Primary conversion goals can be established by defining funnels, and through each funnel, progression analyzes the goal conversion, calculate conversion rate and finally focus on areas of improvement.

What Insights do you get?

1. Goal Conversion Rate is an important Key Performance Indicator (KPI) that helps determine why users drop out.

2. Determines what the user experience of your app like.

3. Draws attention to funnel that is causing most conversions and likely to focus your attention on improving funnels that are not able to convert.

About the Author Avatar

Priyanka is based out in India, and she loves blogging, traveling and doing cool kinds of stuff in data understanding and visualization.