7 KPIs Every Shopify Store Owner Should Be Tracking

In this blog, we’ll cover the 7 KPIs every Shopify store owner should be tracking to optimize their operations.

If you run a Shopify store, an e-commerce business, or an online retail store on BigCommerce, tracking the right Key Performance Indicators (KPIs) can be the difference between growth and stagnation.

You need to know how much revenue you’re making, how many visitors actually convert into buyers, how much you’re spending to acquire new customers, and whether they come back for more.

But don’t worry. You don’t need a finance degree to track these Key Performance Indicators (KPIs). You just need to focus on the right numbers that directly impact your store’s success.

In this blog, we’ll break down 7 KPIs every Shopify store owner should be tracking to help you gauge your store’s profitability, efficiency, and long-term growth.

Plus, we’ll show you how to measure them effortlessly. Let’s get started.

7 Must-Track KPIs for Shopify Success

Here are the seven essential KPIs every Shopify store owner needs to track:

• Sales Conversion Rate

• Average Order Value (AOV)

• Customer Acquisition Cost (CAC)

• Customer Lifetime Value (CLV)

• Cart Abandonment Rate

• Traffic Sources and Referral Data

• Repeat Purchase Rate

Why Tracking KPIs Is Crucial for Your Shopify Store

We won’t take up much of your time here. Let’s quickly go over why tracking these KPIs is important.

1. Sales Conversion Rate

This is the percentage of visitors who actually make a purchase. If 1,000 people visit your store and 30 buy something, your conversion rate is 3%. A low conversion rate means something’s off. Maybe your site isn’t user-friendly, your product descriptions are unclear, or your checkout process is clunky.

How to track this KPI: Shopify’s built-in analytics will show you your conversion rate under ‘Online Store Conversion Rate’.

Optimization Tips:

• Speed matters. If your site loads slower than a grandma texting, people will leave. Optimize images, use Shopify’s built-in speed tools, and test on mobile.

• Make checkout a breeze. No one likes a long checkout process. Offer guest checkout, auto-fill options, and multiple payment methods.

• Show people they can trust you. Reviews, trust badges, and real-life customer photos go a long way in convincing shoppers to hit “Buy.”

• Experiment with pricing. Sometimes, a small discount or a slightly different pricing structure can make a big difference.

2. Average Order Value (AOV)

AOV tells you how much the average customer spends per order. If your AOV is $50, it means customers, on average, are spending $50 each time they check out.Increasing AOV boosts revenue without needing more customers.

How to track this KPI: Shopify’s order reports give you this data, or you can calculate it manually: AOV = Total revenue / Total number of orders

Optimization Tips:

• Bundle it up. Offer product bundles or “Buy 2, Get 1 Free” deals to increase cart value.

• Free shipping threshold. If your average order is $40, offer free shipping on orders over $50. Customers will likely add more to their carts.

• Cross-sell smartly. Amazon does it, and so can you. Suggest complementary products at checkout (e.g., “You might also like…”).

• Use limited-time offers. A little urgency (“This deal expires in 24 hours!”) can nudge people to add more items.

3. Customer Acquisition Cost (CAC)

This is how much you spend to acquire a new customer — including paid ads, influencer collaborations, and marketing campaigns.

How to track this KPI: Divide your total marketing spend by the number of new customers you acquired: CAC = Total marketing spend / Number of new customers

Optimization Tips:

• Target smarter, not harder. If your ads aren’t converting, tweak your audience. Test different age groups, locations, and interests.

• Make organic traffic work for you. Blog posts, SEO-optimized product descriptions, and Pinterest pins can drive free traffic over time.

• Retarget, retarget, retarget. Running ads? Show them to people who’ve already visited your store instead of throwing money at new audiences every time.

• Turn customers into ambassadors. Referral programs work. Happy customers love to spread the word if there’s something in it for them.

4. Customer Lifetime Value (CLV)

CLV estimates how much revenue a customer will generate over their entire relationship with your store. High CLV means repeat customers who love your brand, which is way more profitable than always acquiring new customers.

How to track this KPI: Multiply AOV × Purchase frequency × Customer lifespan.

Optimization Tips:

• Loyalty programs aren’t overrated. Give points, discounts, or exclusive perks for repeat purchases.

• Personalized emails work wonders. Instead of blasting generic offers, send product recommendations based on past purchases.

• Subscription models = guaranteed repeat customers. If it makes sense for your business, offer a subscription (e.g., beauty boxes, coffee, pet treats).

• Re-engage before they forget you exist. Send win-back emails with a small discount or an update on new arrivals.

5. Cart Abandonment Rate

This is the percentage of shoppers who add products to their cart but don’t complete the checkout process. A high cart abandonment rate means you’re losing potential sales at the last step.

How to track this KPI: Shopify Analytics shows this under ‘Abandoned Checkouts’.

Optimization Tips:

• Hidden fees = instant turn-off. Be upfront about shipping costs and taxes to avoid surprise drop-offs at checkout.

• Add an exit-intent pop-up. A well-timed discount or reminder before they leave can pull them back in.

• Multiple payment options matter. Some people love PayPal, others prefer Apple Pay. Give them choices.

6. Traffic Sources and Referral Data

Where are your customers coming from? Google, Instagram, email marketing, or word of mouth? Knowing which sources bring the most valuable customers helps you focus on what’s working and cut out what’s not.

How to track this KPI: Use Shopify Analytics and Google Analytics to see referral sources.

Optimization Tips:

• Check which platform sends the best customers. If Instagram drives traffic but doesn’t convert, focus more on what’s bringing in actual buyers.

• SEO takes time, but it’s worth it. Optimizing product pages for search can bring consistent free traffic in the long run.

• Pinterest can be a goldmine. If your products are visually appealing, Pinterest is where your target audience might be hanging out.

• Affiliate marketing is a game-changer. Find creators or blogs that align with your brand and let them send high-quality traffic your way.

7. Repeat Purchase Rate

This tells you how many of your customers are coming back to buy again. Remember, loyal customers spend more and cost less to retain than acquiring new ones.

How to track this KPI: Repeat Purchase Rate = (Number of repeat customers / Total number of customers) × 100

Optimization Tips:

• Follow up with a personalized thank-you email. A little appreciation goes a long way.

• Give them a reason to return. Offer a discount or an exclusive deal for their next purchase.

• SMS marketing is seriously effective. Text messages have crazy high open rates. Use them wisely.

• Surprise them with a small freebie. Unexpected perks can turn a one-time customer into a lifelong fan.

Related Read: Shopify Bookkeeping Guide for 2025

Make Smarter Business Decisions With doola

Tracking and optimizing these Shopify KPIs is essential, but numbers alone don’t grow a business. You need the right foundation too.

 If your store is scaling, ensuring your business structure, compliance, and financial records are in order is just as critical as improving your conversion rates.

That’s where doola comes in. Whether you need to form your LLC, manage your business finances, or stay on top of tax compliance, we handle the back-end so you can devote your time in growing your e-commerce business.

Ready to streamline your store’s success? Book a free consultation with doola today!

FAQs

How often should I check my Shopify store’s KPIs?

It depends on the metric. Sales conversion rates and cart abandonment should be monitored weekly, while customer lifetime value (CLV) and acquisition costs are best reviewed monthly or quarterly to track trends over time.

What tools can I use to track these KPIs?

Shopify Analytics, Google Analytics, and third-party apps like Klaviyo, Triple Whale, and Hotjar provide insights into customer behavior, sales trends, and marketing performance.

How does customer acquisition cost impact profitability?

A high CAC eats into your profits, making it harder to scale. Keeping it lower than your customer lifetime value (CLV) ensures long-term profitability and sustainable growth.

What strategies can help reduce cart abandonment rates?

Simplify checkout, offer multiple payment options, enable guest checkout, provide clear shipping costs upfront, and use retargeting emails to recover lost sales.