What's an example of a metric used to measure value?

Analysis of Correct Answer(s)

• Cart size: This metric directly reflects the monetary value of a transaction. A larger cart size indicates that a customer has purchased more items or higher-priced items in a single order, thereby generating greater revenue and direct economic value for the business. In e-commerce, it's a clear indicator of the financial outcome of a user's interaction.

Analysis of Incorrect Options

• Page depth: This metric measures user engagement by counting the number of pages a user views during a session. While higher page depth can correlate with interest or potential for conversion, it does not directly quantify the value generated (e.g., revenue or profit). A user could browse many pages without making a purchase.
• Time spent on site: Similar to page depth, this metric measures user engagement. Longer time spent on a site might suggest higher interest, but it doesn't directly translate into economic value. A user might spend a lot of time researching but not complete a purchase, or spend a short time and make a high-value transaction.
• Cost-per-click (CPC): This is an advertising metric that measures the cost incurred for each click on an advertisement. It's a measure of expense, not the value generated by a user or a conversion. While essential for evaluating advertising efficiency, it does not quantify revenue, profit, or the economic benefit derived from user interaction.