learn-ecommerce-metrics-with-phoebe / Leader session 2 of 6
Learn Ecommerce Metrics with Phoebe · Leader track · Session 2 of 6

The metric dictionary

In a1 you learned to read the top line as three levers. Today you put precise definitions under the words - because "conversion rate" means two different honest numbers depending on the tool, "users" means three different things inside GA4 alone, and the most expensive misunderstandings in ecommerce are two executives using the same word for different counts. Still reading mode: no computation, just the vocabulary and the one rule that keeps it honest.

🟢 Leader track C-level · category heads · managers Reading mode - no computation Builds on a1
0-3 · Recap a1 3-16 · People vs visits vs screens 16-40 · Two CRs & the funnel dictionary 40-45 · Q&A
Part 1 · the three counts under every metric

Visitor, session, pageview 13 min live

Every ecommerce metric divides one count by another, so the dictionary starts with the counts. A visitor is a person. A session is one visit - in GA4 it ends after 30 minutes of inactivity, so a lunch break mid-browse splits one shopping trip into two sessions. A pageview is one screen loaded. Mango Lane's month: 240,000 visitors generating 360,000 sessions - 1.5 visits per person, the store's window-shopping habit made visible - and far more pageviews than either.

Maya 1 visitor Monday lunch · session 1 home dresses PDP PDP 4 pageviews · browses, leaves, buys nothing 30+ min idle = expired Tuesday evening · session 2 PDP cart checkout paid ✓ 4 pageviews · returns and completes the order Visitors 1 Sessions 2 Pageviews 8 Scale Maya up 240,000 times: Mango Lane's 240K visitors, 360K sessions (1.5 per person) One shopper, three different counts. Every metric picks one of them as its denominator.
🔍 Click to zoom - Maya over two days: 1 visitor, 2 sessions, 8 pageviews
LiveAnd "users" means three things inside GA4 alone4 min▶

When your team says "users", GA4 gives them three choices, and the reports default differently:

  • Total users - everyone who fired any event in the period. The biggest number.
  • Active users - users with an engaged visit; this is what GA4 usually means by just "Users". Smaller.
  • New users - first-ever visit in the period. Smallest, and the one growth decks love.

Three honest numbers, one word. A "user growth" chart can rise or fall depending on which was picked - so the dictionary habit is simply to ask which. Nobody is lying; the word is just overloaded.

What to ask your data team after Part 1 "In our weekly report, is 'users' total, active, or new - and is 'traffic' visitors or sessions?" Two questions, four words of answer each, and half the cross-team confusion in your metrics gone.
Part 2 · the same word, two honest numbers

The two conversion rates 12 min live

Here is the dictionary's most important entry. Shopify's "online store conversion rate" divides purchase sessions by total sessions. GA4's purchase-journey funnel counts users at each step instead. Same store, same month, and Mango Lane shows 2.7% in one tool and roughly 3.9% in the other - a 44% gap with zero change in the business. Neither tool is wrong. They chose different denominators.

LiveSide by side - and why both are honest5 min▶
Where you see itWhat it countsMango Lane
Shopify - online store conversion rateSessions that ended in a purchase, divided by all sessions9,720 of 360,000 sessions = 2.7%
GA4 - purchase journey funnelPeople (users) who purchased, divided by all people who started~9,300 of 240,000 visitors = ~3.9%

Remember Maya from Part 1: her Monday session converted at 0%, her Tuesday session at 100%, and Maya-the-person converted at 100%. Session counting scores each visit; user counting scores each shopper. Because visitors make 1.5 sessions each, the user-based rate is always the larger number at Mango Lane. Both describe the same reality from a different seat.

The rule: declare the denominator Never accept or present "conversion rate" unqualified. Say "session conversion rate, 2.7%" or "visitor conversion rate, about 3.9%". A rate without a declared denominator is a rumor with a percent sign.
Self-studyAOV - the quiet fine print3 min read▶

Average order value sounds definition-proof: revenue divided by orders, $68 at Mango Lane (typically 2 items around $34 each). The fine print is what gets excluded - Shopify, for instance, leaves gift card sales and post-order adjustments out of its AOV. Small print, but if merchandising celebrates an AOV lift the same month a gift card promotion ran, you want to know whether the tool even saw the gift cards. Dictionary habit: ask what is excluded, not just what is divided.

Self-studyGMV in one line2 min read▶

GMV is the total value of goods sold before the deductions start - and there is no universal standard for which deductions (discounts, returns, tax, shipping) are netted out at which line. Shopify alone reports a ladder from gross sales to net sales to total sales. The leader move is one question: "what is netted out of this number?" The analyst track (b2) climbs the full ladder rung by rung; for this track, the question is enough.

What to ask your data team after Part 2 "Which conversion rate do we report to the board - session-based or user-based - and is it written down anywhere?" If it is not written down, a6 (metric governance) shows you what the write-up should look like.
Part 3 · the words for the middle of the journey

The funnel metrics, in dictionary form 10 min live

Between "arrived" and "paid" sit four metrics your team will quote at you. At Mango Lane: PDP penetration 40% (sessions that reached at least one product page), add-to-cart 25% of those PDP sessions - though the same behavior is honestly 10% if you divide by all sessions instead, the denominator rule again - checkout start 45% of cart sessions, and checkout completion 60% of started checkouts. You do not need to compute these (a3 teaches you to read them as a chart). You need to know which question each one answers.

The question you are really asking The metric that answers it "Are shoppers even finding products?" PDP penetration · 40% of sessions "Are product pages tempting enough?" Add-to-cart · 25% of PDP sessions "Is checkout broken?" Checkout completion · 60% of starts "Do we have a traffic or a converting problem?" Sessions (360K) vs session CR (2.7%) "Are orders getting bigger or smaller?" AOV · $68 (2 items x $34) Start from the question, not the dashboard. Every leader question routes to one metric.
🔍 Click to zoom - which question routes to which metric
LiveAdd-to-cart: one behavior, two honest framings4 min▶

Mango Lane's 36,000 cart-adding sessions can be honestly described two ways: 25% of the sessions that saw a product page, or 10% of all sessions. The first tells product how persuasive the PDP is; the second tells you how much of total traffic ever shows purchase intent. A team quoting 25% and a benchmark report quoting 10%-style numbers are not contradicting each other - they picked different denominators. This is the denominator rule making its third appearance today, which is exactly how often it deserves to appear.

Real world

Checkout start vs completion earn their keep in incidents. When a payment provider hiccups, checkout completion craters while everything upstream looks normal - the sharpest possible signal of where the problem lives. A leader who knows the word "completion" asks a 30-second question; one who only knows "conversion is down" convenes a meeting.

What to ask your data team after Part 3 "When you report add-to-cart rate, is the denominator PDP sessions or all sessions?" Then ask them to label it on the dashboard itself, so nobody has to ask twice.
Demo · read-along

The question drill ★ 10 min · everyone reads

Five questions leaders actually ask in reviews, routed to the metric that answers each. Read them once now; a3 makes the routing automatic.

LiveFive real questions, five right metrics10 min▶

"Are people finding products?" - PDP penetration (40%). If shoppers never reach a product page, nothing downstream can save the month. Ask for its trend, not one week's value.

"Is checkout broken?" - checkout completion (60%). The last gate, and the one that moves violently when payments, shipping costs, or a release go wrong.

"Do we have an attracting problem or a converting problem?" - sessions vs session CR, side by side. Fewer visits is marketing's lever; the same visits buying less is product's. One chart settles which meeting to hold.

"Was the promo worth it?" - AOV next to session CR. Discounts often lift conversion while shrinking order value; you need both words to see whether the trade paid.

"Why do our two tools disagree?" - almost always denominators, not data quality. Session-counting vs user-counting (2.7% vs 3.9%), of-PDP vs of-all-sessions (25% vs 10%). Ask for the denominators before commissioning an audit.

Homework

Try it yourself - this week ◐ 15-20 min total

Sources

Sources this session draws on

Every definition on this page comes from the platforms' own documentation - which is exactly where your team's numbers come from. This page draws on:

✓GA4 sessions & users documentation - the 30-minute session timeout; total vs active vs new usersPart 1 · people vs visits vs screens
✓Shopify analytics - session-based online store conversion rate, the storefront funnel, AOV exclusionsParts 2-3 · the session-counting side
✓GA4 purchase journey report - the user-counting five-step funnel from session start to purchasePart 2 · the user-counting side
◐Industry benchmarks - what "good" looks like for each dictionary entryDeliberately absent today · full treatment in a5
Check yourself

Three questions before you go 🎯 ◐ 90 seconds

1 · Mango Lane has 240,000 visitors and 360,000 sessions in the same month. What does that mean?

A visitor is a person; a session is one visit. Shoppers who browse, leave, and come back generate multiple sessions each - Mango Lane's ratio is 1.5, ordinary window-shopping behavior for fashion.

2 · Shopify shows conversion at 2.7% while GA4's purchase journey shows about 3.9%. What is the first explanation to check?

Both are honest. Purchase sessions / all sessions gives 2.7%; buying people / all people gives about 3.9%. Ask for denominators before commissioning any audit - it is almost always this.

3 · Your team reports add-to-cart at 25%; a benchmark report says stores like yours see around 10%. What do you ask first?

Mango Lane's own add-to-cart is honestly 25% of PDP sessions and 10% of all sessions - the same 36,000 cart sessions. Different denominators, not different performance. Declare before you compare.

Leader session 2 cheat sheet · pin this

The three countsVisitor = a person. Session = one visit (expires after ~30 min idle). Pageview = one screen. Mango Lane: 240K / 360K / many.
Three kinds of "users"GA4: total (any event) vs active (engaged - the default) vs new (first visit). Always ask which.
Two conversion ratesSession CR 2.7% (Shopify-style) vs visitor CR ~3.9% (GA4 journey, user-counting). Both honest, different denominators.
Declare the denominatorNever say or accept "conversion rate" unqualified. A rate without a denominator is a rumor.
AOV fine print$68 = 2 items x $34. Ask what is excluded - Shopify's AOV leaves out gift cards and post-order adjustments.
GMV one-linerGoods value before deductions - and no universal standard for which. Always ask "what is netted out?"
Funnel dictionaryPDP penetration 40% · add-to-cart 25% of PDP (10% of all) · checkout start 45% · completion 60%.
Running skillRoute the question to the metric, then check its denominator. Next: a3, reading the whole funnel as one chart.