Most businesses track too many metrics. Dashboards with 47 numbers that nobody looks at. Here are the only seven you actually need to monitor.
1. Revenue
Obviously. But track it weekly, not just monthly. Spot trends early. Compare to same week last year if you have the data.
2. Conversion Rate
Traffic means nothing without conversions. Your site-wide conversion rate tells you how well your funnel works. For e-commerce, 2-3% is average. 4%+ is good.
3. Average Order Value (AOV)
How much does each customer spend? Increasing AOV by 10% has the same impact as increasing traffic by 10%, but it's usually easier.
4. Customer Acquisition Cost (CAC)
Total marketing spend divided by new customers. If this number is higher than your profit per customer, you have a problem.
5. Customer Lifetime Value (LTV)
How much is a customer worth over their entire relationship with you? LTV should be at least 3x CAC for a healthy business.
6. Return on Ad Spend (ROAS)
Revenue from ads divided by ad spend. Know your break-even ROAS based on margins. Everything above that is profit.
7. Email Revenue Percentage
What percentage of revenue comes from email? Should be 20-30% for healthy e-commerce brands. If it's under 10%, you're leaving money on the table.
The Weekly Review
Every Monday, spend 15 minutes reviewing these seven numbers. Compare to last week. Compare to goals. Identify one thing to improve. That's it. Simple but effective.