E-commerce analytics glossary.
Practical definitions for the analytics terms that drive e-commerce growth — from Market Basket Analysis to Customer Lifetime Value.
Customer Segmentation
RFM Analysis
A customer segmentation technique based on Recency, Frequency, and Monetary value of purchases.
Customer Segmentation
The practice of dividing customers into groups based on shared characteristics or behaviors.
Cohort Analysis
Grouping customers by shared acquisition date to track behavior patterns over time.
Behavioral Targeting
Delivering personalized content or offers based on a customer's past actions and behavior patterns.
Churn Rate
The percentage of customers who stop purchasing from your store within a given time period.
Market Basket Analysis
Market Basket Analysis
A data mining technique that discovers products frequently purchased together.
Association Rules
If-then rules that describe the probability of relationships between products in transaction data.
Support, Confidence & Lift
The three core metrics used to evaluate the strength and significance of product associations.
Apriori Algorithm
The foundational algorithm for discovering frequent itemsets and association rules in transaction data.
Recommendation Engines
Product Recommendations
AI-powered suggestions of products a customer is likely to want based on data patterns.
Cross-Selling
Recommending complementary products to increase the total order value.
Upselling
Encouraging customers to purchase a higher-value version of the product they are considering.
Revenue Metrics
Average Order Value (AOV)
The average amount of money spent each time a customer places an order.
Customer Lifetime Value (CLV/LTV)
The total revenue a business can expect from a single customer over their entire relationship.
Conversion Rate
The percentage of website visitors who complete a desired action, typically making a purchase.
Data Analytics
Predictive Analytics
Using historical data and statistical models to forecast future customer behavior and trends.
Data-Driven Decision Making
Using quantitative evidence rather than intuition to guide business strategy.
Heatmap Analytics
Visual representations of data that use color gradients to highlight patterns, density, or intensity.