Online business is an ever-evolving landscape. To have a successful business model, it is essential to review your traffic, marketing strategies, and customer base regularly. With ecommerce platforms like Yourstore, which lets you set up and run an ecommerce business easily, you can obtain off-the-shelf data about ecommerce metrics at your fingertips and lead your business to success.
Ecommerce metrics are an invaluable set of quantifiable measurements that provide vital insights to help you build strategies and make data-backed decisions for your ecommerce store. In this article, we'll explore the most important ecommerce metrics and explain how they can help you unlock your business’s full potential.
Want to level up your ecommerce business? Yourstore could be your answer. We are a one-stop shop for all your ecommerce needs. We provide platforms for B2B & B2C, Multi-vendor, Services ecommerce and Ready-made ecommerce at affordable packages for your business. Our knowledgeable team of experts will guide you through the entire process and provide you navigate everything right from setting up your ecommerce store to optimising it to generate sales. Get started today and unlock the full potential of your business.
Ecommerce metrics are the digital data or measurements of your brand's daily operations like conversion rate, and average order value to keep track of your ecommerce processes in the digital space.
These ecommerce metrics provide valuable insights into the effectiveness of ecommerce strategies, customer behaviour, and overall business health.
Known as key performance indicators, KPIs are the crucial metrics that determine the success of your business. It is necessary to understand that all KPIs are metrics but not all metrics are KPIs.
KPIs differ from business to business based on industry and niche. It is you who decide what are the important KPIs you need to track for your business. For example, for a B2B business, the most important KPI would be the customer retention rate (CRR), whereas, for a B2C business, it would be the average order value (AOV).
Ecommerce metrics can help your business grow in many ways. Ecommerce KPIs offer a comprehensive view of an online business' health and success. It's important for your ecommerce business to regularly track, analyse, and interpret these metrics to gain insights into your performance and identify areas for improvement to thrive in the competitive marketplace.
Whether you are an established ecommerce giant or a budding entrepreneur, tracking and improving these metrics will undoubtedly be the key to unlocking your online business's success.
It is a key metric for measuring how effective your marketing efforts are in converting visitors into customers. A higher conversion rate means more visitors make purchases, while a lower rate means only a few do. For example, if you have 500 website visitors and only 10 of them make a purchase, your conversion rate would be 2%. This means that 2% of visitors convert into customers.
AOV ecommerce metric represents the average amount spent by customers per transaction. A higher AOV indicates that customers spend more on each purchase, which can boost overall revenue.
CAC calculations take into account all of the company expenditures from acquiring and keeping new customers including advertising, customer service, product development, etc. As a result, businesses can determine how much it costs to acquire and retain new customers. Low CAC indicates cost-effective customer acquisition.
An ecommerce metric indicating how many users add items to their shopping cart but don't complete their purchases. This is known as "cart abandonment" and is a major issue for online retailers. Shipping costs or a complicated checkout process can cause this trouble. Reducing cart abandonment is essential for improving conversion rates.
The customer lifetime value metric shows the average amount you earn from a customer over their lifetime. CLV calculates not only the initial purchase, but also the amount of money a customer spends overtime on additional purchases, subscriptions, or services.
For example, if the average customer spends $500 in the first year and $50 in the following four years, the customer's lifetime value is $700.
Traffic is the primary element for any ecommerce store. Website traffic rate measures the number of visitors visiting your site including page views per visit, time on site, bounce rate, and new versus returning customers.
In the process of registering and checking out, this ecommerce metric indicates how many customers are interested in your brand and willing to share their email addresses to better understand your product and services.
The e-mail id could be a valid piece of information to recover abandoned carts, remarketing, and offering customer support.
To better understand your brand's positioning and place in the market, you should analyse the communication and interaction about your brand on social media channels. Followers, reactions, shares, and subscriptions indicate your customers' engagement and brand reach. Tracking these metrics will help, in making use of various social media channels for your business business.
Keeping track of blog views and shares will help you determine if your ecommerce marketing team is attracting customers through wordplay. Content that is both informative and persuasive is more likely to attract customers to your website.
This ecommerce metric KPI calculates the percentage of orders that are returned by customers. It helps them identify overstocked products or products with high return rates. This measure is critical for companies because it allows them to track customer satisfaction and identify areas where they need to improve.
A successful business always hears and responds to what customers say! It is necessary to take customer feedback and analyse survey results to provide a custom user experience that helps in hiking sales and conversion rates. The provided feedback will also help you with brand building.
The percentage of visitors who leave the website after viewing only one page. This indicates a low level of user engagement. Having trouble with your Site speed, device type, appearance and navigation delays contributing to UX issues. Improvements should be made to keep users interested and tied to your website.
Some ecommerce metrics should be checked weekly to ensure your business is healthy. Bi-weekly metrics may include AOV, CPA, and cart abandonment. A longer data window is necessary for month-to-month metrics, due to traffic patterns and marketing patterns. Quarterly metrics will be long-tail activities that demonstrate your business's flourishing and growth.
Depending on your business model and goals, you may track different ecommerce metrics. Regularly monitoring and analyzing these metrics will provide valuable insights into the performance of your ecommerce venture and help you make informed decisions to drive growth and success.
In conclusion, ecommerce metrics are indispensable for your online business to thrive and succeed in digital commerce. By tracking and improving metrics you can evaluate performance, identify strengths and weaknesses and seize growth opportunities.
Armed with a comprehensive understanding of their performance, you can respond to evolving customer preferences and market trends.
To stay updated in the world of ecommerce read our other blogs that break down things and make running your business a lot easier.
, Yourstore
11th August 2023