Introduction
Many eCommerce teams track everything — but end up understanding nothing. The root cause? Confusing business goals with KPIs and metrics. In this post, we clarify the differences with real-world eCommerce and airline industry examples.
What Are Business Goals?
A business goal is a strategic objective defined by leadership. It focuses on outcomes like revenue growth or customer retention.
eCommerce Example
Increase total revenue by 20% in Q3. Airline Example: Increase the number of international ticket sales by 15% this year.
What Are KPIs?
Key Performance Indicators (KPIs) are critical metrics directly tied to business goals.
eCommerce Example:
Conversion Rate, Revenue per Session. Airline Example: Ticket Sales Conversion Rate, Average Revenue per Flight.
What Are Metrics?
Metrics show user behavior but aren’t always tied to business success.
eCommerce Example
Pageviews, Scroll Depth, Time on Page. Airline Example: Number of website visitors checking flight schedules, Mobile app open rate.
Business Goal → KPI → Metrics Flow:
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Goal: Increase sales
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KPI: Purchase Conversion Rate
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Metrics: Product page views, Add-to-cart rate
Airline Flow Example:
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Goal: Increase ticket sales(Booking Confirmations)
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KPI: Ticket Purchase Conversion Rate
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Metrics: Flight search queries, Seat selection events
3 Real-World Mistakes to Avoid:
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Tracking everything without filtering important data.
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Using too many KPIs.
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Ignoring business context when analyzing metrics.
Conclusion
Clarifying your measurement structure helps your eCommerce business focus on what matters. Always start with business goals.
