Making Sense Of Ecommerce Metrics For Strategy

Using Data to Drive Strategy: To lead with confidence and achieve sustainable growth, businesses must lean into data-driven decision-making. When harnessed correctly, data illuminates what’s working, uncovers untapped opportunities, and de-risks strategic choices. But using data to drive strategy isn’t about collecting every data point — it’s about asking the right questions and translating insights into action. Here’s how to make informed decisions using data as your strategic compass. 1. Start with Strategic Questions, Not Just Data: Too many teams gather data without a clear purpose. Flip the script. Begin with your business goals: What are we trying to achieve? What’s blocking growth? What do we need to understand to move forward? Align your data efforts around key decisions, not the other way around. 2. Define the Right KPIs: Key Performance Indicators (KPIs) should reflect both your objectives and your customer's journey. Well-defined KPIs serve as the dashboard for strategic navigation, ensuring you're not just busy but moving in the right direction. 3. Bring Together the Right Data Sources Strategic insights often live at the intersection of multiple data sets: Website analytics reveal user behavior. CRM data shows pipeline health and customer trends. Social listening exposes brand sentiment. Financial data validates profitability and ROI. Connecting these sources creates a full-funnel view that supports smarter, cross-functional decision-making. 4. Use Data to Pressure-Test Assumptions Even seasoned leaders can fall into the trap of confirmation bias. Let data challenge your assumptions. Think a campaign is performing? Dive into attribution metrics. Believe one channel drives more qualified leads? A/B test it. Feel your product positioning is clear? Review bounce rates and session times. Letting data “speak truth to power” leads to more objective, resilient strategies. 5. Visualize and Socialize Insights Data only becomes powerful when it drives alignment. Use dashboards, heatmaps, and story-driven visuals to communicate insights clearly and inspire action. Make data accessible across departments so strategy becomes a shared mission, not a siloed exercise. 6. Balance Data with Human Judgment Data informs. Leaders decide. While metrics provide clarity, real-world experience, context, and intuition still matter. Use data to sharpen instincts, not replace them. The best strategic decisions blend insight with empathy, analytics with agility. 7. Build a Culture of Curiosity Making data-driven decisions isn’t a one-time event — it’s a mindset. Encourage teams to ask questions, test hypotheses, and treat failure as learning. When curiosity is rewarded and insight is valued, strategy becomes dynamic and future-forward. Informed decisions aren't just more accurate — they’re more powerful. By embedding data into the fabric of your strategy, you empower your organization to move faster, think smarter, and grow with greater confidence.

This is the most important table in e-commerce—but no one ever talks about it and it's costing you MILLIONS. It's not a cap table. It's not an AOV table. It's the returning customer cohort table. It shows by month acquired, how much customers are worth on first order and each month thereafter. Why it's the most important thing in ecom: 1. True Customer Value Revealed A $50 first order may become $120 over 6 months. This changes everything - suddenly, that "expensive" acquisition cost is a bargain. Many brands have ROAS targets that are too high, they aren't accounting for 60-90D value. 2. Market Domination Justify higher CAC by looking at long-term value. If 90-day value is $200, you can afford $100 CAC while competitors cap at $50. Dominate your market. 3. Cohort Analysis Insights Discover which channels bring high-value customers. FB ads might cost more but deliver 3x lifetime value vs. Google. Optimize spend accordingly. 4. Cash Flow Management Predict payback periods accurately. If cohorts show 60-day breakeven, confidently reinvest every two months. Scale aggressively but safely. 5. Product Strategy Identify which products create loyal customers. If Product A has 70% retention vs 30% for B, prioritize A in marketing and development. 6. Forecasting Precision If cohorts consistently grow 20% monthly, project revenue 6-12 months out with confidence. Plan inventory, hiring, and expansion strategically. Master the cohort table to build a customer value engine that compounds over time. This is how category-defining brands are built. Not by having the highest ROAS.

We all say we’re “data-driven.” But if the only number you track is revenue…  You’re just revenue-driven. That’s like calling yourself a chef because you know how to eat. Revenue is the scoreboard. But to actually win the game, you need to track the plays that create it. Here are a few I watch closely: 1⃣ Customer Acquisition Cost (CAC) ↳ Protects margins and reveals if growth is truly scalable. ↳ Rising CAC without rising LTV = red flag. 2⃣ Customer Lifetime Value (LTV) ↳ Shows the real worth of a customer over time. ↳ Informs how much you can afford to acquire them in the first place. 3⃣ Conversion Rate by Funnel Stage ↳ Pinpoints exactly where prospects drop off. ↳ Optimizing here often costs less than buying more traffic. 4⃣ Retention Rate ↳ Growth gets easier when your base sticks around. ↳ Higher retention means compounding revenue without compounding spend. 5⃣ Attribution Quality ↳ Without reliable attribution, you’re guessing where sales come from. ↳ Bad data = wasted budget and wrong bets. Being data-driven is about having a full picture, not just the scoreboard. Revenue tells you the “what.” The rest tells you the “why” and “how.” What’s one non-revenue metric you’d never stop tracking? ♻ Share this to help more brands go beyond “revenue-driven.” Follow me, Francesco Gatti, for more on data, retention, and ecommerce growth.