Core Metrics & KPIs
Essential KPIs every D2C brand must track—from CAC and LTV to AOV and conversion rate. These metrics form the foundation of ecommerce performance measurement.
The metrics that decide whether your brand scales.
Core metrics are the numbers that directly connect ad spend to business outcomes. They answer the question every operator asks every Monday: 'Did we make money last week?'
ROAS tells you revenue efficiency. MER tells you blended profitability. LTV tells you how much a customer is worth over time. AOV tells you the average transaction value. Together, they form the minimum viable dashboard for any Shopify brand running paid media.
Most brands track these metrics in isolation. The operators who scale reliably track how they move together — and recalculate their break-even thresholds whenever margins shift.
Start with these 5
Return On Ad Spend
ROASThe revenue generated for every dollar spent on advertising.
Average Order Value
AOVThe average dollar amount customers spend per order/transaction.
Marketing Efficiency Ratio
MERTotal revenue divided by total marketing spend, providing a holistic view of marketing efficiency.
Customer Acquisition Cost
CACThe total cost of acquiring a new paying customer, including all marketing and sales expenses divided by the number of new customers acquired over a specific period.
Customer Lifetime Value
LTVThe total revenue a business expects to earn from a single customer over the entire duration of their relationship.
Browse the full list
Cost Per Acquisition
CPAThe cost of acquiring a specific action through a particular campaign or channel—such as a purchase, sign-up, or lead.
LTV:CAC Ratio
The ratio comparing customer lifetime value to customer acquisition cost. A 3:1 ratio is considered healthy.
Revenue Per Visitor
RPVThe average revenue generated per website visitor, combining both conversion rate and average order value.
Conversion Rate
CVRThe percentage of website visitors who complete a desired action, typically a purchase.
Cart Abandonment Rate
The percentage of shoppers who add items to their shopping cart but leave without completing the purchase.
Gross Margin
The percentage of revenue remaining after subtracting the cost of goods sold (COGS).
Contribution Margin
CMThe profit earned on each unit sold after deducting all variable costs.
Contribution Margin 1, 2, 3
A layered contribution margin analysis: CM1 (Revenue minus COGS), CM2 (CM1 minus fulfillment), CM3 (CM2 minus marketing).
New Customer Acquisition Rate
The percentage of total orders from first-time purchasers versus returning customers.
Repeat Purchase Rate
The percentage of customers who make more than one purchase.
Purchase Frequency
The average number of purchases a customer makes within a given time period.
Customer Retention Rate
CRRThe percentage of customers who remain active over a specific time period.
Churn Rate
The percentage of customers who stop purchasing over a given period.
CAC Payback Period
The time it takes to recover customer acquisition costs through gross profit.
Units Per Transaction
UPTThe average number of items purchased per order.
Net Promoter Score
NPSA customer loyalty metric measuring likelihood to recommend on a 0-10 scale.
Customer Satisfaction Score
CSATA direct measure of customer satisfaction, typically rated 1-5 after specific interactions.
Run the math
Free calculators that operationalize the terms above. No signup, instant results.
ROAS Calculator
See exactly where your ROAS stands vs your industry.
Open calculatorLTV Calculator
See what your customers are worth over time — and whether your acquisition cost is sustainable.
Open calculatorMER Calculator
Measure blended marketing efficiency across all channels.
Open calculatorProfit Margin
Unit economics for every product and order.
Open calculatorConversion / AOV
Model the impact of a 1% conversion-rate lift.
Open calculator13 free tools · No signup · Instant results
Related glossary categories
Most operators reading about core metrics also end up in these four.