10 Important eCommerce Metrics you Should be Tracking
Last Updated on November 16, 2021 by Editorial Team
Author(s): Scarlett Grace
In the fast-paced world of eCommerce, you need to keep a close eye on how every aspect of your business is performing. Understanding how to measure eCommerce is a crucial aspect of business growth. It allows you to make data-driven decisions by seeing what works well, what doesn’t, and what you need to fix.
As an eCommerce website owner, you need to make an effort to learn about eCommerce metrics if you are serious about having more sales and higher revenues. This article will provide you with all the best eCommerce metrics that will help you boost your sales.
1. Customer Acquisition Cost
Your spending on promotional expenses, marketing promotions, and discounts are given to sell the products are what defines acquisition cost. Basically, it is the amount you spend on getting a new customer on your site.
You may reduce CPA by focusing on improving the sales conversion rate, enhancing the user experience, and investing in free marketing social platforms.
2. Customer Lifetime Value
Brush up your math skills for this one! This metric displays the typical amount of money a given customer spends across their lifetime purchasing from you.
Personalize. Personalize! You need to identify your target customers, track their online behavior, and develop personalized content such as emails and special discounts. Also, you may create a loyalty scheme for rewarding repetitive purchases to propel your sales.
3. Average order value
As an eCommerce operator, you want your customers to spend as much money as possible on your online business. One of the most significant metrics is your average order value, representing the average value of each transaction completed in your online business.
You could offer customers packages or bundles, discounts for bulk orders, or free delivery for orders over a certain amount to boost this metric. Remember, the higher AOV, the better for your online shop!
4. Customer Retention Rate
Have you felt like you are losing customers as fast as you get them on your site? This eCommerce metric is the lifeblood for any eCommerce website. It gears towards building loyalty as opposed to encouraging purchases.
To ensure a long-lasting relationship with your customers, you may create a competitive loyalty program, excel in customer service, and engage with them on social media. Always value 100% customer satisfaction!
5. Conversion rate
This is probably is the most important of all. This metric shows how many of your visitors are converted into customers. Every step in the customer journey from browsing to checkout should work smoothly.
If you really want to make money, optimize your acquisition channels so that you only pay for high-quality visitors while keeping costs low. Keep in mind that the conversion rate for a website selling high-end shoes will differ from a low-cost clothes store.
6. Net promoter score
On a scale of 0-10, how would you rate our service? A simple survey, right? But, this metric is an excellent indicator of the kind of customer experience your eCommerce business offers.
You can track the score by giving an email to all of your customers to participate in the survey and give a score to your business.
7. Cart abandonment rate
For any eCommerce retailer, an abandoned cart is an eyesore. It pains to see a potential customer load up their cart and then abandons it before purchasing their item.
Make sure to enable customers to easily change the number of products on their card, even allowing them to delete them altogether.
8. Average Profit Margin
How much are your gains after deducting your capital? If you are not making any profit, then you might want to rethink your business model. This metric presents what portion of the retail price is your profit.
Think whether your customers are quality-oriented or price-sensitive before making any decisions. It is important to revisit and reevaluate your margin targets for a maintainable profit.
9. Email Click-Through Rate
This measure compares the number of people that clicked the link(s) included in a specific email to the total number of people who received the email.
You may separate your return rate by items and categories to help with this. It will be much easier to eliminate underperforming goods from your inventory this way. You may utilize accurate measurements of models, particular sizes, and even HD photographs of the items from different perspectives.
10. Bounce Rate
In certain ways, this measure is linked to the cart abandonment rate. Essentially, a website’s bounce rate is the percentage of visitors that leave the site after seeing only one page or bounce.
This is calculated by dividing the total number of one-page views by the total number of website entries. You may use Google Analytics to keep track of your bounce rates for this.
Final words on eCommerce metrics
You can start making data-driven decisions now that you know which eCommerce indicators to watch. Keep in mind that what works for others might not work for your e-store. Set company goals, track these indicators every day, and adapt as necessary.