E-commerce Glossary

MER (Marketing Efficiency Ratio)

Ratio of total revenue to total marketing spend.

MER provides a macro-level view of marketing efficiency. Formula: MER = Total Revenue / Total Marketing Spend. A MER of 5 means every marketing dollar generates $5 in revenue. Unlike per-channel ROAS, MER eliminates attribution problems and reflects business reality. It's the preferred metric of CFOs and DTC brands for managing overall marketing budgets.

Related terms

AOV (Average Order Value)Average amount spent per order in your store.See definition ARPU (Average Revenue Per User)Average revenue generated per user over a given period.See definition Blended CACAverage acquisition cost including all marketing channels.See definition Blended ROASOverall return on all advertising spend combined.See definition CAC (Customer Acquisition Cost)Total cost to acquire a new customer.See definition Churn RatePercentage of customers lost over a given period.See definition

Explore

Related pages

Free tools

ROAS Calculator

ROAS, break-even ROAS and POAS.

Customer lifetime value and max profitable CAC.

Acquisition cost and LTV:CAC ratio.

Guides

Calculate LTV on PrestaShop

Complete guide to measuring customer lifetime value on PrestaShop.

Calculate Margin on PrestaShop

Formulas and methods to calculate real net margin.

PrestaShop Dashboard: False Numbers

Why your dashboard lies and how to fix it.

Analytics by platform

PrestaShop Analytics

Profit, cohorts, RFM and ad audiences for PrestaShop.

WooCommerce Analytics

Profit, cohorts, RFM and ad audiences for WooCommerce.

Shopify Analytics

Profit, cohorts, RFM and ad audiences for Shopify.

Measure your e-commerce metrics automatically

Profit, LTV, cohorts, RFM and 50+ metrics calculated automatically for PrestaShop, WooCommerce and Shopify.

Try Fullmetrix for free

14-day free trial.