Four Key Evaluation Points of an Ecommerce Success

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Rajdeep Singh

I am associated with CYBERMOUNT Solutions as the Managing Director of the company. My role includes checking the current levels of demand and supply in the online market with respect to web design and development services. I have been working as an entrepreneur in the fields of manufacturing and IT for past 12 years. My current objective is to set the CYBERMOUNT brand on global platform. Besides this, I am also working as an independent author/writer in the context of current online services available in the market.

Today if we have a look on the platform of ecommerce we see that it has become one of key performance indicators of online markets. The demand of ecommerce based platforms has been increasing in leaps and bounds.

It due to this reason today an ecommerce platform has indeed become a very crucial element. So there is a major need to check on its performance and apply some usable metrics and parameters which can determine its success.

There are various parameters wherein the success on ecommerce platform can be measured however the emphasis lays on the following four which derive a concrete consensus for the same.

The four key evaluation points/parameters are:

  • Deriving the customer satisfaction
  • Understanding the lifetime value of a customer
  • Calculating the sales funnel
  • Measuring the marketing ROI (Return on Investments)


There are many tools available on an ecommerce platform to derive customer satisfaction. This can be done via Google Analytics or any other internal software of your organization. These tools are really helpful in determining the psychology, demography and purchasing patterns of your online visitors.

On the basis of all these parameters you can successfully develop an authentic strategy to improve your ecommerce platform thus achieving scalability and success. As per some statistics it is revealed that many ecommerce businesses outsource their customer service facility and because of this they have never been able to find that what exactly the customers want.

This eventually results in customer dissatisfactions and thus losing business gradually. Thus it is always advised to have an internal customer support service so as to know exactly what the customers want. If your customer service is in-house, you shall be to achieve a greater satisfaction which would also bring repeat business.

 Whenever you are listening to your customers you always have to consider the following points:   

  • You have to see the customer’s experience and their perspective for a service.
  • Check the whether the customer’s needs are being met or not.
  • It’s better to know your ultimate customer rather than falling for numbers.
  • You have to listen to your customers clearly as sometimes some requirements are misunderstood.
  • Apply the brick and mortar strategy.

After gathering the vital information, now you are able to build an authentic relationship with the clients as now you know the exact requirements which successfully achieve your satisfaction metrics. Apart from this you can always go for collecting the customer’s valuable feedbacks and surveys as well for checking on the satisfaction levels.


For measuring the marketing ROI, you need to calculate the average acquisition cost. By determining the marketing ROI you will get to know the status of your marketing efforts and there upon you can start making an effective strategy for improvements.

The formula is mentioned below.


By dividing “Acquisition Spending” by the “Number of Customers Acquired” you will get your average acquisition cost. This can then be compared with the CLV/CLTV from where you can check whether your CLV is lower or higher and on the basis of this you can develop your strategies.


These days an effective ROI (Return on Investments) is basically measured on the basis of Customer Lifetime Value (CLV/CLTV) calculations.

The CLV/CLTV formula is mentioned below.


Now precisely calculate the CLV/CLTV, you need to determine other factors accurately.

  • Average Profit – You need to accurately measure your inventory and sales margins.
  • Average Acquisition Cost – Divide your acquisition spending by the number of customers acquired from your marketing campaigns.

Now this CLV/CLTV is really significant for you as it helps you in retaining your existing customer rather than finding a new one.

The Impact of NPS (Net Promoter Score)

NPS helps a lot in predicting the levels of customer retention which means repeat business. This valuation can also be added along with others. By utilizing the NPS you can successfully determine that which of your customers are actually promoters, passives or detractors.

It is through these points; you can attain a higher CLV/CLTV.


For measuring the sales funnel some of the vital points can be analyzed via Google Analytics account.

  • The strength of the landing pages
  • The percentage of conversion (conversion rates)
  • Types of visitors coming to the site
  • The keyword statistics and strategy
  • The traffic location and its optimization
  • Sale campaign tests via Google Ad words

Now to ensure that the landing pages are effective and holding engagement, a proper content has to be displayed along with an appropriate CTA (Call to Action) application. The navigation structure has to be very smooth. All these things would ultimately increase the conversion rates as well.