Best E-Commerce Customer Retention KPIs

Customer retention is a crucial part of e-commerce. Learn about the KPIs you should be keeping an eye on to ensure customer loyalty.

Brody Hall
By Brody Hall
Joel Taylor
Reviewed by Joel Taylor

Published July 3, 2022.

Customer retention KPIs are important because they allow businesses to measure how successful they are at retaining customers. By tracking these KPIs, businesses can identify areas where they need to improve and make changes that will help them retain more customers. Additionally, customer retention KPIs can help businesses understand which marketing and sales efforts are most effective at retaining customers.

How Does Customer Retention Relate to Profitability?

There is a strong relationship between customer retention and profitability. Studies have shown that companies with high levels of customer retention enjoy significantly higher profits than those with low customer retention rates.

This is because customers who are retained are more likely to buy more products and services, and are also more likely to refer friends and family members to the company. In addition, companies that focus on customer retention typically have lower marketing costs as they do not need to spend as much money on acquiring new customers, while also maximizing profits.

3 KPIs for Measuring E-Commerce Customer Retention

There is no one-size-fits-all answer to this question, as the KPIs you should track to measure e-commerce customer retention will vary depending on the specifics of your business. However, some general KPIs that could be useful to track include:

  1. The percentage of customers who return to your site after their first visit.
  2. The average number of sessions per customer.
  3. The average amount of time customers spend on your site.