Question

Over the last few years, companies have come to recognize e-commerce sales are increasing at a much faster rate than brick-and-mortar sales. Accordingly, companies are focusing more on measuring the success of their websites in terms of sales generation and customer engagement. The list below represents some common metrics that companies use to measure the effectiveness of their websites in generating sales and engaging with their customers:

Abandoned registrations - number of visitors who start the process of completing a registration page and then abandon the activity.
Click-through - count of the number of people who visit a site, click on an ad, and are taken to the site of the advertiser.
Page exposures - Average number of page exposures to an individual visitor.
Cost-per-thousand (CPM) - sales dollars generated per dollar of advertising.
Abandoned shopping carts - number of visitors who create a shopping cart and start shopping and then abandon the activity before paying for the merchandise.
With respect to these metrics, which one of the following statements is true?

A. True
B. False

Answer 1

The statement is True. The metrics listed provide valuable insights into the effectiveness of websites in generating sales and engaging with customers in the e-commerce space.

Step-by-step explanation:

The statement is True. The metrics listed provide valuable insights into the effectiveness of websites in generating sales and engaging with customers in the e-commerce space.

For example, abandoned registrations and abandoned shopping carts indicate potential issues or barriers that may be preventing visitors from completing the desired actions on a website, such as signing up or making a purchase. Click-through metrics help measure the effectiveness of ads in driving traffic to the website, while page exposures provide an understanding of how many pages a visitor typically views during a session.

Cost-per-thousand (CPM) is a common advertising metric that measures the revenue generated for every dollar spent on advertising. It helps evaluate the efficiency and profitability of advertising campaigns.