Nowadays, selling online does not look like Pan’s Labyrinth anymore. Because of e-commerce metrics, each online seller can more easily generate more sales. You could attract way more customers and escalate your business if you use them wisely. For this reason, we gathered all the information about different strategies to help you boost your sales. In this article, you will find the top 10 most important e-commerce metrics.
10 e-commerce metrics
1. Order value
Increasing your average order value is a cost-effective alternative to getting new traffic. In other words, it is an insight on how big of a need customers have for your product. The main thing about it is that more purchases in a single order bring more profit. You can improve it by offering free shipping for large orders, discounts, free samples, upselling, etc.
(total revenue) / (number of orders placed) = Average order value
2. Conversion rate
Basically, it means the percentage of your website visitors who actually buy something. In other words, conversion into a shopper. By improving this number, you will actually gain more profit. Moreover, it helps you figure out your weaknesses and website faults. You can improve your conversion rate with video content, showing your advantages, lead capture form, etc.
(Number of sales) / (Number of users) x 100% = Conversion Rate
3. Traffic sources
It is one of the most accurate e-commerce metrics, which shows the sources of your traffic. In other words, which platforms your customers are coming from. It actually shows which marketing strategy works the best for you. For example, which social media channel attracts the most visitors. Also, with traffic source analysis you can eliminate the non-profitable strategies and invest more into profitable ones.
4. Support rate
Support rate measures how many users need your help before they complete the checkout process. These customers are really important to your online business, because they are interested in your product. Moreover, they managed to ask for help or explanation. If the support rate is big, but those customers do not buy your products, you need some changes. Try to add more information and improve your support line.
5. Customer acquisition
Customer acquisitions show the cost of a new customer, which is not the same price you pay for a visitor. The reason for this is that not all of your visitors convert into shoppers. Not to mention, that usually less traffic with higher conversion is more profitable than a lot of traffic and low CRO. For this reason, you need to know that maximum cost, otherwise, you might actually be losing money.
6. Customer lifetime value
Basically, it counts how much time the customer is spending on your website, compared to their daily routine. In other words, how much of their free time they are able to spend with you. It is important to increase this one of the most valuable e-commerce metrics. One sure way to do it - build a long-term relationship with your customers. In turn this helps increase brand loyalty and urges them to purchase more than one order.
7. Retention rate
Do not focus only on new customers. Keep in mind that you also have to take care of existing ones. If you treat them well, they will definitely come back to purchase again. There are a few ways to do it - the red carpet treatment, loyalty programs, regular newsletters, etc. It is important to create a convenient image for your brand. Also, fulfil your customer’s needs.
8. Opt-in rate for email marketing
Opt-in rate for email marketing is one of the most popular e-commerce metrics. It helps in controlling your audience, and attracting new customers. Also, it is a great reminder to your previous customers. Usually, there are two options to track Opt-In Rate. You can do it manually or automate the process.
(number of emails opted in) / (number of users) x 100% = Email Opt-In Conversation Rate
9. Shopping cart abandonment rate
Shopping cart abandonment rate shows how many shoppers add items to a shopping cart, but do not buy them. In other words, something distracts them and they abandon it. There are a few reasons why this might be happpening in your store - your checkout process is too complicated, there are hidden costs, estimated delivery is not fast enough, not enough payment options, etc. That is why this is one of the most important e-commerce metrics, which doesn’t require a lot of work to be fixed. Eliminate all these causes, and you will improve your shopping cart abandonment rate.
10. Best performing products
Finding the best-performing products requires you to turn away from other e-commerce metrics. In other words, do not think only about return rates or conversion rates. There is a possibility that you do not expose and advertise some of your products enough. So, you might be losing potential revenue.