Ecommerce

List and define the fundamental Key Performance Indicators (KPIs) for a theoretical e-commerce business. Go beyond simple sales volume to include metrics such as Customer Acquisition Cost (CAC), Lifetime Value (LTV or CLV), Churn Rate, Average Order Value (AOV), and Net Promoter Score (NPS). Explain the mathematical relationships between these metrics (e.g., the ratio of LTV to CAC) and discuss what optimal ranges theoretically indicate about the stability and growth potential of the business.

Investigate the psychological barriers that prevent consumers from trusting online vendors. Analyze the theoretical components of trust-building, including competence (ability to deliver), benevolence (caring for the customer), and integrity (honesty). Discuss the role of signaling theory in e-commerce, specifically how security badges, transparent return policies, professional design, and user-generated reviews serve as signals of trustworthiness to reduce perceived risk.

Trace the theoretical evolution of e-commerce interfaces from desktop-dominated browsing to mobile-first experiences. Discuss the constraints and affordances of mobile devices (screen size, touch interfaces, portability) and how they necessitate different design paradigms compared to desktop. Analyze the concept of 'micro-moments'—intent-rich moments when a user turns to a device to act on a need—and how e-commerce strategies must align with these brief, high-intent interactions.