As a PM for a e-commerce app, what metrics would you track to measure its success

Question 1

Opening

Answer 1

That’s a great question. For a e-commerce app, I’d focus on a mix of both business and user-centric metrics to ensure we’re driving value for the company and delivering a good user experience.

Question 2

At a High level

Answer 2

at a high level, I’d start with a few key metrics. First, I’d look at Gross Merchanidse Value ( GMV)- this gives us the total value of all sales on the platform. It’s a direct indicator of how much revenue the app is generating. Next, I’d track customer acquisition cost (CAC) to understand how much it costs to bring in new customers. and alongside that, I’d look at customer lifetime value (CLV), which tells us how much revenue we can expect from a customer over time. If we ‘re able to increase CLV, that means customers are sticking around and making repeat purchases.

Question 3

User behavior metrics

Answer 3

Then, I’d dive deeper into behavior with metrics like Conversion Rate, which shows the percentage of user make a purchase after visiting the app. A low conversion rate would indicate that there might be friction in the user journey.

Question 4

User behavior metrics 2

Answer 4

I’d also monitor the Cart Abandonment Rate to see how many users are adding items to their cart but not completing the checkout process—this could signal issues with pricing, trust, or even the checkout flow.

Question 5

Rentention

Answer 5

I’d track Retention rate to understand how many users are coming back after their first purchase. Hihger retention usually leads to an increase in CLV. Alongside that, average order value would be another key metric-tracking how much each customer spends per order. If we can increase AOV, it shows we;re doing good job of encouraging customers to spend more during each transaction.

Question 6

Performance-related metrics

Answer 6

I’d look at customer satisfaction through metric like NPS or app store ratings to gauge overall happiness with the app. And for performance, metrics like app load times and downtime are critical, becuase if the app isn’t faster or reliable, that’s going to hurt the overall user experience and potentially lead to lost sales.

Question 7

Conclusion

Answer 7

It’s about ensuring the app is profiable, while also making sure users have a seamless, enjoyable experience that encourages them to come back. Both sides are important for long-term success.