If you want to make money from your eCommerce website, you need to do more than just grope in the dark.
Tracking the performance metrics of your online store is the first step on your journey to eCommerce success. You need to have your numbers down to have an objective picture of how your website is performing. Then improve failing parts of your product and make projections for your future growth.
These metrics are also handy for strategic planning. You can deep-dive into improving one particular metric within a previously determined timeline. E.g. reduce your churn rate from 80% to 50% in 3 months.
Here, we have compiled the 35 important metrics you should track if you want to understand your customers and make more sales:
1. CAC: Cost of acquiring a customer
The CAC is how much money you spend to get one customer. From money spent on a Facebook ad to PPC, content marketing, offline promotion, SEO and staff remuneration, CAC includes all the money spent over the course of the acquisition funnel.
The lower the cost of acquisition, the better.
2. Conversion Rate
Conversion Rate reveals the percentage of visitors to your website that is performing your core conversion activity. In the case of an eCommerce company, this is “buying”.
For you, Conversion Rate, then, is the percentage of visitors who buy from your ecommerce store.
3. AOV: Average Order Value (Or Average Market Basket)
The AOV shows you the average amount of revenue that orders bring to your eCommerce website. The metric tracks the amount of money that each order brings in and calculates an average to provide insight into your present and future revenue.
For instance, if you made N14000 from four orders, then your AOV is N3500 per order.
Churn is the percentage of your customers who do not return after the first purchase on your eCommerce website.
For example, a churn rate of 90% means 90 out of your 100 customers buy once and don’t return i.e churned.
You want to keep that number low. A high churn rate is problematic.
5. Cart Abandonment Rate
Customers add items to their carts when they are ready to buy from your website, but not all of them advance to checkout.
The Cart Abandonment Rate reveals the percentage of your visitors that added items to their shopping cart but did not finish the checkout process. The lower the Shopping Cart Abandonment rate, the better.
6. Site Traffic
Site Traffic measures the number of people who visit your website.
Keep an eye on daily, weekly and monthly traffic to know when you have a dip or spike in traffic. These insights will help you set traffic goals and develop customer acquisition strategies.
7. Product Page Traffic
The Product Page Traffic metric tracks the number of visit to pages containing pictures and descriptions of the products you have on sale.
Know the pages on your site that are getting the most traffic and the ones getting the least to understand your customer’s preferences.
8. Average pageviews per visit (or time on site)
This metric tells you how many pages a visitor opens on the average when on your website. If your eCommerce content is engaging, this stat will be high – which is good. Otherwise, it will be low.
Use this information to improve content on your eCommerce website and also the loading speed of your pages.
9. Referral Sources
How do your customers arrive on your website? Google? Email? Social Media or something else?
This is an important metric to track as it lets you know what part of your customer acquisition effort is working and how to optimize your acquisition. That way, you don’t keep throwing money down a black hole.
10. Exit Pages
At what point do your visitors leave your eCommerce site?
Keep track of this metric to understand when and why your customers exit your website. The insight will help you improve your website so that it guides visitors cleanly through the checkout process.
11. Net Profit
This is probably the most important metric of the lot. It tells you if your eCommerce business is profitable or not. Net profit is: Revenue minus Cost. If your cost outweighs your revenue, then you need to take another shot at your business model.
12. Time to Purchase
In an ideal world, visitors would buy the first time they visit your website. But it’s not an ideal world. Visitors take their sweet time to think before buying on your website. When you know how long ( or how many visits) it takes an average visitor to buy from you, you will be able to fine-tune and re-target your campaigns.
13. Customer Satisfaction Index
How well do your customer fancy your eCommerce website? This metric helps you answer that question. You can’t track this metric automatically, however. Sending out a Net Promoter Survey, or a customer satisfaction survey will give you a good insight into this index.
14. Product Reviews
70% percent of users read reviews before electing to buy a product. This number increases when the product is an expensive one.
Tracking this metric lets you know how people are engaging and contributing on your website. If the figure on this metric is high for you, consider investing in campaigns around user-generated content on your website. This will improve your SEO and the average time spent on your website.
15. LTV: Lifetime Value
Your Customer Lifetime Value is the projected value or revenue that a customer will generate for your eCommerce website during the time of their patronage. Knowing your LTV helps you create and optimize your customer acquisition strategies.
16. Unique visitors
This metric tracks the number of distinct visitors to your eCommerce website within a specified period.
The tool that tracks web traffic measures unique visitors using their unique IP addresses. This means that no matter how many pages a visitor loads or how many times they visit your website, they are counted only once.
Knowing this metric is important because it gives you an honest picture of how many people are interacting with your website.
17. Average Margin
The percentage of the revenue you retain after deducting the costs of the products you sell on your website.
18. Cost of goods sold
This metric is the sum of all costs used to buy products you are selling on your website.
19. New customer orders vs. returning purchases
What percentage of your orders is from new visitors and what percentage is from previous customers? This metric helps you know how your customer acquisition efforts measures against your customer retention efforts.
20. Product Affinity
When you know the product that your customers buy together, you are able to better structure your website to suggest these complimentary items at the right time. You could also use the insight to create product bundles.
21. Product Relationship
Keep track of the items your visitors search for after viewing a certain item. It could give insight into how people search on your website and help you improve your search results page.
22. Day Part Monitoring
Know what time your website receives the most visitors. This insight will help know what time your customers are active online, and it’ll let you know when to run to your marketing campaigns.
Ecommerce websites are known to receive the most traffic on Wednesdays and Thursdays. Drill further down to the time of day and use the insight to have better-targeted marketing campaigns. https://blog.kissmetrics.com/8-important-ecommerce-stats/
23. Ads click through rates (CTRs) (Facebook, Twitter, Google etc.)
Your CTR is the percentage of visitors that your website receives based on your ads. It is calculated by dividing the number of times your ad is shown by the number of click-throughs to your website.
24. Newsletter Subscribers
25. Newsletter Open Rate
26. Newsletter Click Rate
27. Customer service email count
28. Customer service phone call count
29. Customer service chat count
30. Customer service average resolution time
31. Inventory level
32. Blog Traffic
33. Blog Traffic
34. Social Media follows, impressions and engagement
35. Customer service open cases
Tracking these metrics help you set realistic goals. They also ensure you know what is working with your website and what is not.
Any metric you’ll like to add? What metrics are you tracking on your ecommerce website? Why? Tell us on twitter @StartaHQ
Feature image via www.pixelfish.com.au