1. Traffic Indicators: Assessing Reach and Quality

1.1 Page Views (PV)

•Definition: Total number of page visits; indicates traffic volume.

•Example: A store with 100,000 daily PVs means its pages have been viewed 100,000 times.

•Optimization: Boost exposure through SEO (title keywords) and paid advertising.

1.2 Unique Visitors (UV)

•Definition: Number of distinct visitors (repeat visits from the same user count once).

•Benchmark: A healthy UV/PV ratio is around 1:3 (three pages per user).

•Optimization: Encourage more page views via related product suggestions (e.g., “You may also like”).

1.3 Click-Through Rate (CTR)

•Definition: Clicks ÷ Impressions (e.g., ad banners or main images).

•Benchmark: Average CTR for Taobao main images is 2%–5%; high-performing images exceed 8%.

•Optimization: Emphasize pain points and use “before/after” visuals to improve click appeal.

2. Conversion Indicators: Measuring Monetization Efficiency

2.1 Conversion Rate (CVR)

•Definition: Orders ÷ Unique Visitors (UV).

•Benchmark:

◦Standard products (electronics): 3%–8%

◦Non-standard products (fashion): 1%–5%

◦Livestreaming sales: 5%–15% (depending on host and offer strength)

•Optimization: Add quality seals and customer reviews; use urgency tactics like “Only 2 left!”

2.2 Average Order Value (AOV)

•Definition: Revenue ÷ Number of Orders.

•Optimization Strategies:

◦Cross-selling (e.g., “Buy a case, get a screen protector”)

◦Discount tiers (e.g., “Get $10 off on orders over $50”)

◦Upselling premium products to high-intent users

2.3 Add-to-Cart Rate

•Definition: Add-to-cart users ÷ UV; shows intent to buy.

•Benchmark: High-quality product pages see 10%–20%; below 5% suggests optimization is needed.

•Use Case: Send reminders (e.g., “Your cart items are about to return to full price”).

3. User Value Indicators: Measuring Long-Term Engagement

3.1 Repurchase Rate

•Definition: Repeat buyers ÷ Total buyers

•Benchmark:

◦FMCG: 15%–30%

◦Durable goods: <5% (can be boosted with trade-in campaigns)

•Optimization: Loyalty programs, exclusive coupons for returning customers

3.2 RFM Model (Recency, Frequency, Monetary)

•Definition:

◦Recency: Days since last purchase

◦Frequency: Number of purchases in a time period

◦Monetary: Total spend

•Use Case: Tag high-value users (e.g., 3 purchases + $500 spent last month), send new product previews. Reactivate dormant users with targeted coupons.

3.3 Retention Rate

•Definition: Users who return to buy or engage within a set period (e.g., 7-day or 30-day).

•Optimization: Improve retention via private communities and personalized member experiences (e.g., birthday gifts, informative content).

4. Revenue & Investment Metrics: Evaluating Business Returns

4.1 GMV (Gross Merchandise Volume)

•Definition: Sales + canceled orders + returns

•Formula: GMV = UV × CVR × AOV

•Troubleshooting GMV Declines:

◦Low UV → invest in paid traffic

◦Low CVR → optimize product detail pages

◦Low AOV → create product bundles

4.2 ROI (Return on Investment)

•Definition: Ad spend ÷ Sales revenue

•Benchmark:

◦Minimum sustainable ROI: 1:2

◦Premium categories (e.g., beauty) may reach 1:10

•Optimization: Pause keywords with ROI <1:1, increase bids on high-converting terms

4.3 Gross Profit Margin

•Definition: (Sales – Costs) ÷ Sales

•Note: Avoid over-discounting to boost GMV at the expense of margin

5. KPI Interlinking: A Practical Case Study

Scenario: A store’s GMV dropped 20% in June. What happened?

GMV Formula: GMV = UV × CVR × AOV
Breakdown:

•UV: +10% year-over-year → Traffic is healthy

•CVR: Dropped from 3% to 2% → Conversion declined

•AOV: Dropped from ¥200 to ¥180 → Customer spending fell

Diagnosis:

•Detail pages lacked seasonal updates; competitors offered aggressive discounts

•Customer service failed to upsell; discount threshold too high (e.g., ¥300 min, but average order was ¥180)

Fixes:

•Add “Summer Refresh” comparison chart highlighting your product’s edge

•Lower discount trigger to ¥200 and recommend low-cost add-ons during checkout (e.g., ¥30 product samples)