The Only 5 Metrics We Look at First When Auditing an Ecommerce Store
When a new store comes to us, its dashboard usually has one of two problems: it's empty, or it's overloaded with numbers that connect to no decision. Both are the same problem — too little signal, too much noise.
The five metrics we audit first: Customer Acquisition Cost by channel, Customer Lifetime Value, conversion rate by traffic source, cart abandonment rate, and revenue-and-margin by SKU. Together they reveal where a store acquires customers, what those customers are worth, where they drop off, and what actually drives profit.
Before we build anything, we audit. Every audit starts with the same five metrics — not because they're the only ones that matter, but because they tell us immediately whether a store has a data problem, and how serious it is.
1. Customer Acquisition Cost (CAC), by channel
If you don't know what it costs to acquire a customer, you don't know if your ads are working. Most stores know total ad spend and total orders, but can't say whether Meta delivers customers at $18 or $47 — and that difference is the line between a profitable store and one slowly bleeding cash. What we want to see: CAC by channel, updated weekly.
2. Customer Lifetime Value (LTV)
CAC only makes sense next to LTV. A $47 CAC is a disaster if a customer buys once and never returns, and healthy if they come back three times a year for two years. Most stores underestimate LTV because they only look at first-purchase value. What we want to see: an LTV:CAC ratio of at least 3:1.
3. Conversion rate by traffic source
Your overall conversion rate is almost useless. A store at 2.4% sounds fine until you segment it and find organic converts at 4.1% while paid social converts at 0.8%. That's a targeting or landing-page problem you can't see until you split it. What we want to see: conversion rate by source, device, and landing page.
4. Cart abandonment rate
The average sits around 70%. Most owners treat it as a fact of life rather than recoverable revenue. Above 75%, we look at checkout flow, payment options, shipping transparency, and whether any recovery sequence exists. What we want to see: abandonment tracked weekly, with a recovery flow in place.
5. Revenue and margin by SKU
Most stores know total revenue. Few know which products drive it — and which quietly destroy margin. We've audited stores where 80% of revenue came from 20% of SKUs and the owner had no idea. What we want to see: revenue, margin, and units by SKU, sortable and current.
What these five tell us
Together they give a complete picture: where a store acquires customers, what they're worth, where they drop off, and what drives revenue. If any one is missing, unclear, or buried in a manual spreadsheet — that's where we start.
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