what are the most important metrics to follow for store and sales health ?

[ThePhenixx]

I'm new to Shopify and E-com, I'm struggling to identify the most important metrics and numbers to keep track of. Appreciate your help !!!

[Promer · Accepted solution]

Hi @ThePhenixx 

Here are the key metrics you should track to understand your store’s health:

• Conversion Rate – The percentage of visitors who make a purchase (aim for at least 2-3%).
• Average Order Value (AOV) – How much customers spend per order; higher AOV means more revenue per sale.
• Customer Acquisition Cost (CAC) – How much you spend to get a new customer (ads, marketing, etc.).
• Customer Lifetime Value (CLV) – The total revenue a customer generates over time; higher CLV = long-term success.
• Cart Abandonment Rate – The percentage of shoppers who leave without completing checkout (optimize your checkout process if this is high).
• Traffic Sources – Know where your visitors come from (organic, ads, social media) to focus on what works.
• Return Rate – If returns are high, check product quality, descriptions, and customer expectations.

Start tracking these in Shopify Analytics and Google Analytics, and you’ll quickly get a better picture of what’s working and what needs improvement

[ThePhenixx]

Thank you so much @Promer that was super helpful, I'm actually a Shopify app developer, and I heard about the new Shopify reports being complex..., I wanna build the last version of Shopify analytics and reports. I'd be super happy to talk about it if you're free to. My email is

``dev.mohamedachrafelmansouri@gmail.com`` 

[Avitanshi_17]

Hey @ThePhenixx ,

The most important thing to focus on right from the start is tracking the right numbers. Trust me, keeping an eye on these key metrics will help you grow your store and make smarter decisions.

Here are the main ones to watch:

1. Sales & Revenue Metrics

• Total Sales – The total money your store brings in.
• Average Order Value (AOV) – How much, on average, each customer spends per order.
  Formula: AOV = Total Sales ÷ Number of Orders
• Gross Profit – Your total sales minus the cost of the products you sell.

2. Customer & Traffic Metrics

• Conversion Rate – The percentage of visitors who actually make a purchase.
  Formula: Conversion Rate = (Total Orders ÷ Total Visitors) × 100%
  💡 A healthy rate is usually between 2% and 5%.
• Website Traffic – How many people visit your store.
• Returning Customer Rate – The percentage of customers who come back for more. The higher, the better!

3. Marketing & Advertising Metrics

• Customer Acquisition Cost (CAC) – How much you spend to get a new customer.
  Formula: CAC = Total Marketing Spend ÷ New Customers
• Return on Ad Spend (ROAS) – How much revenue you make for every dollar spent on ads.
  Formula: ROAS = Revenue from Ads ÷ Ad Spend

4. Operational Metrics

• Inventory Turnover – How quickly you sell out and need to restock.
• Fulfillment & Shipping Times – How fast customers get their orders (faster shipping = happier customers!).

5. Customer Support & Experience

• Refund & Return Rates – A high rate could mean issues with product quality or customer expectations.
• Customer Reviews & Ratings – Positive reviews build trust and boost sales.

Final Tip: Use Shopify Analytics!

Shopify has built-in reports to track all these metrics. Keep an eye on your Dashboard and look for trends—if something starts dropping (like conversion rate), dig into why and fix it ASAP.

Hope this helps! If you found it useful, accepting the answer will help others in the community too.