Many argue that conversion rate should not be the main metric for the success of an eCommerce website.
Conversion rates (CR) vary greatly across industry verticals, so comparing one market or store with another won’t typically produce any meaningful insights. For example, an apparel eCommerce site that sells to B2C customers will have vastly different results than a business that supplies industrial materials to B2B customers.
But that doesn’t mean conversion rates aren’t important. They make sense when used in conjunction with other important metrics in this list. It’s a great measure of the competitiveness and health of your eCommerce store.
CR shows how many people who visit the website leave as a customer. It’s the direct metric that shows the quality of the traffic and proves effectiveness of your strategy and tactics. If the traffic is high but the CR is low, you may need to review the traffic sources, or take actions to nurture your visitors.
You should build your KPIs based on your specific market, data from your competitors, and internal analysis.