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eCom Audit Calculator
Your Results
This page will show you the results on how your brand is performing vs some benchmarks collected from 100's of eCom brands. Make a list of the areas that need improving and the suggestions listed.
1
Ad Metric Calculations
Metrics
Explanation
Calculation
Benchmark
Brand Result
How To Improve This
Notes
Meta Hook Rate
The stop scroller isn't strong enough. Based on total impressions not just video ads so can be skewed.
3-sec video plays ÷ impressions
20-30% > 30% great
  • change the first 3-5 seconds of the ad
  • use a different opening line/image/video
  • switch your hook format (question, issue, fact, etc.)
  • create a shocking or exciting hook
Meta Hold Rate
The ad isn't engaging/doesn't resonate enough. Based on total impressions not just video ads so can be skewed.
thruplays ÷ impressions
10-20% > 20% great
  • shorten the ad
  • include smiling faces and good eye contact
  • remove fluff or filler sections from the ad
  • focus on highlighting more product benefits/solution early on
  • show more footage of the product in use
  • make sure editing style matches the demo you’re targeting
  • change editing (captions, subtitles)
  • ensure the quality of the content is high
Frequency
How many times on average people are seeing you ads over the selected period. The average buyer needs 7 hours of interaction, across 11 touch points, in 4 separate locations/placements before they are comfortable to make a purchase. Remember this is for Meta only so factor in your other channels.
impressions ÷ reach
3-6
  • increase spend on REM
  • add more channels
  • make more engaging content for them to watch
  • make your content more scroll stopping
Meta Save Ratio
Interested enough to save it
post saves ÷ reach
0.1-0.3% > 0.3% great
  • make ad creative that is more relevant to the customer pain points and current situation
Meta Share Ratio
Interesting enough to share with their network.
post shares ÷ reach
0.1-0.3% > 0.3% great
  • make more entertaining and humorous
Click Through Rate (CTR)
The percentage of people that see you ad and click on it to visit the website/store.
link clicks ÷ impressions
1-2%
  • use urgency, scarcity or exclusivity
  • agitate more pain points
  • have a stronger hook
  • tell a story or example
  • test more creative types
  • simplify your offer (dumb down)
  • use more social proof and credibility
  • test new creative types
Cost Per Click (CPC)
The cost of your Traffic
ad spend ÷ link clicks
< $1.50
  • have a stronger ad hook
  • test more creative types
  • create a stronger offer
  • test new targeting
Rev Per Ad Click
Easy view on your ad traffic value benchmark. Also review how much do you pay for a click vs how much you make per click.
purchase conversion value ÷ link clicks
> $2.50
  • improve targeting
  • improve ads value prop and hooks
Rev Per User Session
Easy view on if your website visitor value benchmark. On average how much a user is worth to you per session visit on the website.
total rev ÷ user website session
> $2
  • improve website conversions rate
  • improve website speed
Ad Conversion Rate
"How effective the ad + landing page combination is at visitors into customers. The ad conversion rate can be higher or lower based on your strategy. - High will be a more profitable approach focusing on BOF and MOF, this is mostly REM, Branded, Niche Targeting. - Lower ad conversion rate can mean a more aggressive approach focusing on TOF, broad targeting and aggressive volume growth. "
purchase ad conversions ÷ link clicks
> 3-4% (higher priced items have lower conversions rates)
  • test new formats of landing pages
  • A/B test elements of your landing pages
  • do heatmap split-testing
  • increase your page load speed
  • simplify the CTA at the end of your ad
  • ensure your ad isn’t too short (sub 15 seconds) at TOF
Website Conversion Rate
The rate at which the website is able to convert visitors into customers.
store orders ÷ website visitors
> 3-4% (higher priced items have lower conversions rates)
  • test new formats of landing pages
  • A/B test elements of your landing pages
  • do heatmap split-testing
  • increase your page load speed
  • simplify the CTA at the end of your ad
  • ensure your ad isn’t too short (sub 15 seconds) at TOF
Cost Per 1000 impressions (CPM)
The cost to show your ad to 1000 people.
(ad spend ÷ impressions) x 1000
< $10
  • test new targeting
  • lower CTR and Cost per save/share
  • try new ad channels
  • do whitelisting with content creators
  • try broader audiences/targeting
  • try automated targeting campaigns (advtg+ and pmax)
Ad Cost Per Acquisition (CPA or CAC)
If you're hitting/above your target CPA it means that you're being profitable. If you're below your target CPA you're not being profitable.
ad spend ÷ purchase ad conversions
Varies per brand
  • get all the other metrics on track and CPA/ROAS will improve as a byproduct
AOV:CPA Percentage
"This is the % of your AOV that is costs to acquire that customer. In a lot of industries whoever can afford to pay the most to acquire the customer will dominate the market share. This number percentage is usually higher on subscription models bit ideally you want to breakeven or profit on the 1st purchase to support growth."
CPA ÷ AOV
< 40% (product / industry specific)
  • improve your ad metrics CPM, CPC, CVR
  • increase your AOV
  • try new channels
  • try new hooks
  • try new avatars
  • find better product market fit
LTV:CPA Percentage
This is the % of your LTV that it costs to acquire that customer.
CPA ÷ LTV
< 33%
  • improve your ad metrics CPM, CPC, CVR
  • increase your LTV
  • increase repeat purchases
Spend by demographics
This tells us what segment of audience our ad is getting served to the most. Based on that we will try adopt the language of that segment of the audience to make the ads resonate even more. This is relevant if you’re doing broad targeting.
breakdown → by delivery → age and gender
NA
  • spend more of your budget in the demographics that are performing
  • use this information to include in your creative & messaging
Spend by placements
This tells us where our ad is appearing the most. This is relevant if you’re doing broad targeting.
breakdown → by delivery → placement
NA
  • spend more of your budget in the demographics that are performing
  • create more ads for the placements that are working
2
Marketing Metric Calculations
Metrics
Explanation
Calculation
Benchmark
Brand Result
How To Improve This
Notes
Marketing Efficiency as a % of revenue (MER)
The percentage of your revenue that you spend on ads.
ads spend ÷ total rev
20-30%
  • increase revenue from non ad channels
  • decrease ads spend
New Customer Marketing Efficiency Ratio (aMER & ncROAS)
This is an important important as it shows the efficiency of new customer acquisition and efficiency. This number is longer term and TOF focused. New customer acquisitions usually cost more but are essential for the growth of a brand.
new customer total rev ÷ ad spend
> 1.2 (growth level specific)
  • focus your ad spend on PROS
  • grow your new customer revenue
Return on Ad Spend (ROAS)
The number that most ad platforms use to gauge success of your ads. A 1 ROAS means that the ad cost = the AOV.
ad rev ÷ ads spend
> 2.5 (industry specific)
  • improve ad metrics
  • try new creative (hooks, creative etc)
  • try new channels
  • try new offers
Ecosystem Return on Ad Spend (eROAS)
The return ratio of your ad dollars. $1 ad spend that generates $4 in total revenue = a 4 ROI. It's a ration that can help benchmark how the company's marketing efficiency is growing and if added budget is positively or negatively impacting the business overall. Can be shown as MER, ROI or eROAS depending on the analytics tool.
total rev ÷ ad spend
> 4 (industry specific)
  • increase revenue from non ad channels
  • decrease ads spend
  • diversify your rev
  • send more emails
  • build your email list
  • work on organic channels
Profit on Ad Spend (POAS)
The gross profit on your ad spend. Unlike ROAS, this number will give you a return on every $1 spend with COGS already taken out.
gross profit ÷ ads spend
> 2 (industry specific)
  • improve ad metrics
  • try new creative (hooks, creative etc)
  • try new channels
  • try new offers
3
Order Source Calculations
Metrics
Explanation
Calculation
Benchmark
Brand Result
How To Improve This
Notes
% of sessions from ads (traffic split)
The percentage of your traffic that you are paying to get to your website via paid ads.
ad clicks ÷ total user sessions
30-40%
  • increase marketing in non paid channels
  • create organic blog content
  • increase posting to social media
  • build referral backlinks
  • start an affiliate/referral program
  • do collaborations
% of orders from ads (order split)
The percentage of your orders from paid ads.
ad orders ÷ total orders
30%
  • increase orders from non paid channels
  • review overlap in ad tracking (use a tool like Triple Whale)
  • understand attribution and the customer journey
% of orders from email
The percentage of your orders from email/sms. These are mostly people who are repeat purchasing or you have collected their 1st party data (email/phone).
email orders ÷ total orders
20-30%
  • increase the size of your email list
  • send more email/sms
% of orders from organic
The percentage of your orders from organic sources. Usually the results/rewards from your SEO efforts and showing up in the orgnaic search resutls.
organic orders ÷ total orders
20-30%
  • improve website conversion rate
  • create organic blog content
  • build backlinks
  • get featured by publications
% of orders from direct
These are people who directly visit your website. Example, bookmarked your site or saved URL, clicks on a link contained in an email/message (the URL has been shared by a third person), etc.
direct orders ÷ total orders
10-20%
  • increase market share
  • increase brand recognition
  • increase word of mouth
% of orders from other
The percentage of your orders that are from other sources or unattributed/untracked due to pixels, utms etc being stripped.
(ad + email + organic + direct orders) ÷ total orders
10%
  • these orders are hard to impact as attribution has been removed
  • increased website conversion rate
  • invest in referral programs/strategies
  • unattributed standard is around 5%
Paid vs Non Paid Order Split (known data)
This percentage ratio removes the uncertain or unknown data of "other" and shows the percentage of orders from paid channels vs non paid channels using percentages from the data we do have clarity on.
ad orders ÷ (other know source orders)
30-45%
  • increase orders from non paid channels
  • review overlap in ad tracking (use a tool like Triple Whale)
  • understand attribution and the customer journey
New Customer Revenue (grow your customer base volume = Acquisition)
"The percentage of revenue coming from new customer purchases. This is the first purchase and the start of this cohorts LTV. Ideally you want the new customer revenue being generated from paid channels and it increases market share. If this number is low, the potential growth of the company can be slow as there are not enough new customers at the start of the LTV entering the funnel. If this number is high, it means that you are acquiring new customers but they are not making additional purchases."
new customers ÷ total rev
60-70%
  • be more aggressive on new customer acquisition
  • use 3rd party tracking tools to focus ad spend on new customer growth
  • improve the 1st time customer UX/UI (website)
  • ask for feedback (post purchase surveys, would you purchase again, why? why not?)
  • a higher percentage leads to a higher market share and revenue growth
Existing/Returning Customer Revenue (profit maximize your customer base = Retention)"
"The revenue generated from existing/returning customers, the second plus purchase. It's important to have a balance between new and existing customer revenue. Ideally you want existing customer revenue being generated from non-paid channels to improve profitability. If this number is low, there's a lot of opportunity to increase profitability via email, organic and direct channels. If this number is high, it can lead to a slower revenue growth. If there is no budget to grow the new customer revenue, it's best to maximize the value of these existing customers (cross-sell, survey feedback, referrals, UGC, word of mouth etc)"
existing customers ÷ total rev
30-40%
  • send more emails/sms
  • stimulate referrals and word of mouth (creating good experiences)
  • ideally we want to be generating the 2nd plus purchase from organic/email
  • ask for feedback (include post purchase surveys)
  • a higher number leads for smaller market share and total revenue but higher profits
4
Store Metric Calculations
Metrics
Explanation
Calculation
Benchmark
Brand Result
How To Improve This
Notes
Refund Efficiency
The % of your revenue that is comparable to your returns amount.
refund cost amount ÷ gross rev
2-6% (higher on apparel)
  • add more information to the product page
  • improve customer support
  • improve returns policy and process
  • improve sizing chart
Discount Efficiency
The % of your revenue that your sales are comparable to.
discount cost amount ÷ gross rev
9-12%
  • reduce the number of sales you do a year
  • only run sales around events
  • test bundling and stacking instead of discounts
  • test different offers
  • improve segmenting
Shipping Efficiency
The percentage of your revenue that is consumed by your shipping costs (shopify shows this in the "shipping labels over time" report)
shipping cost ÷ gross rev
3-7% (depends on item)
  • change providers
  • change packaging
  • negotiate rates down
  • use packets instead of boxes
Cost of Goods (COGS)
The cost to deliver the product/ service (manufacturing, shipping). Can be a number or percentage. These are usually variable costs based on the order volume.
materials + manufacturing + pick & pack + shipping
< 30%
  • decrease manufacturing costs
  • pass shipping cost onto customers
  • negotiate with suppliers (bulk ordering etc)
Operating Cost
The amount it costs to operate the business (ads, wages, software etc). This is usually fixed costs outside of the ad spend. So you can calculate this buy looking at MER + fixed as a percentage of your gross revenue.
wages + ads + software etc.
< 45%
  • decrease operating costs
  • improve conversion rates across all metrics
Gross Profit
Total profit minus cost to manufacture and ship the product (COGS)
total rev - COGS
Varies per brand
  • decrease COGS
  • improve website conversion rate
  • improving all lower level metrics will impact this number
Net Profit
Total profit minus ALL expenses. COGS + operating expenses (ads, software, wages etc) + taxes
total rev - (COGS + operating costs)
Varies per brand
  • diversify rev sources more between ads, email/sms and organic
  • improving all lower level metrics will impact this number
5
AOV & LTV Metric Calculations
Metrics
Explanation
Calculation
Benchmark
Brand Result
How To Improve This
Notes
Average Order Value (AOV)
The average amount of revenue you make per customer purchase.
total rev ÷ number or orders
> $100
  • increase price
  • upsell & order bumps
  • add more products
  • bundling
  • reduce discounting
Orders Over Lifetime/Period
The number of orders a customer places to reach the average lifetime value for the company.
number of orders ÷ customers
2-3 over 12 months
  • depending on your product you may want to increase or decrease the number of orders it takes to get to your LTV
  • this key metrics here is trying to get your customers to their LTV fast
  • then increase your LTV
Lifetime Value (LTV)
The total dollar value a customer is worth to you for the period selected. We suggest looking at multiple ranges 6, 12 months etc.
total rev ÷ number or customers
> $600
  • upsell and cross sell more products
  • push gifting ads/emails
  • set up more post purchase flows
  • ask customers what else they want/would buy
  • release new products
  • add other, higher priced shipping options (speed, protection etc)
Gross Lifetime Value (GLTV)
"The total dollar value a customer is worth to you for the period selected. We suggest looking at multiple ranges 6, 12 months etc. if no discounts, shipping etc was taken out of the order. If this number is a lot higher than LTV you might want to reduce the discounting, charge more for shipping and reduce your returns. This number could be the potential LTV if none of these were costs to the business."
gross rev ÷ number or customers
> $800
  • upsell and cross sell more products
  • set up more post purchase flows
  • release new products
Ad Customer Acquisition Cost (ACAC)
The ad cost you have to pay to acquire a new customer. This is the usual metric for CAC as well. We have 2 types to include all expenses.
ad spend ÷ ad purchase conversions
Varies per brand
  • find product market fit
  • increase pricing
  • test new offers
  • test new ad creative
  • test new ad channels (find cheaper traffic but same quality)
Total Customer Acquisition Cost (TCAC)
The cost you have to pay to acquire a new customer including all costs (COGS, ads, wages, software etc)
(operating cost + COGS) ÷ customers
Varies per brand
  • same as above
  • your CAC will get less efficient as you scale. The performance of CAC looks like the curve of a bell curve
Lifetime Customer Gross Profit (LTGP)
The profit on a customer excluding manufacturing costs.
LTV - COGS
> $500
  • sell more products to your existing customers
  • lower COGS
Lifetime Customer Net Profit (LTNP)
The profit per customer acquired via ads over the lifetime of the data period selected. This includes all expenses (COGS, ads, wages etc). It's a good idea to have this number higher than ACAC.
LTV - TCAC
> $400
  • sell more products to your existing customers
  • lower COGS
  • lower operating costs
LTV:CAC or (LTV:ACAC)
This ratio measures the relationship between the lifetime value of a customer and the ad cost only of acquiring a customer. A 1 LTV:CAC means that your ad cost = your average lifetime customer value.
lifetime value / ACAC
> 3
  • improve secondary ad metrics
  • improve conversion rates
  • test new channels
  • test new creative types
Ad Acquisition Profits. LTGP:ACAC
Understand if you are acquiring customers (organic & paid) at a profitable rate after COGS and ad spend have been included.
LTGP ÷ ACAC
> 2.5
  • need to acquire customer at a lower cost
  • need to reduce COGS
  • need to increase the value of a customer
Total Profits. LTV:TCAC
Understand if you are acquiring customers at a profitable rate once all expenses (COGS + Operating cost) are included. Over a 1 ratio should be scalable.
LTV ÷ TCAC
> 1 is profitable
  • all areas of the business need small MoM improvements
  • if this is over 1 the brand is in the clear to start scaling
  • if this is under one the brand needs more profit optimization
Lifetime Total Profits for this Data's Cohort
This is the estimated profit over the selected period if all customers complete their lifetime value. Understanding how these metrics impact your profit over the lifetime of a customer. This is the projected profit from all the marketing efforts during the select period.
(visitors x conversion rate x LTV) - total expenses
Varies per brand
  • improving all lower level metrics will improve this metric, all systems need to be working well to profitably scale a brand.
Imidate Acquisition Profits for this Data's Cohort
Understand the immediate profit or loss (day 1, or first purchase only) on the first purchase. This helps with cash flow and how fast you are getting a return on your invested ad spend. This allows you to see how aggressive you can get with taking marketing share $0 is breakeven on the business.
(visitors x conversion rate x AOV) - total expenses
Varies per brand
  • add upsells at checkout
  • lower the cost of traffic and ACAC
  • improve website conversion rate
  • improve all smaller metrics from above
Expected Delayed Profits
This is the difference between the rev collected on the 1st purchase vs collected over the time of that customer. This a strong reason as to why generating new customers at the start of their LTV is important.
LTV Profit - Immediate Profit
Varies per brand
  • focus on acquiring new customers
  • increase your LTV
  • speed up the 2nd and repeating purchases
  • add more products
  • do more cross sells and upsells via email & sms