Your eCommerce store collects data on prospects and customers as they browse your site, purchase items and interact with your brand. You can put this information to good use when you’re tracking the right metrics for your online store. These metrics form the foundation of a data-driven eCommerce strategy that sets up continual improvement for your site.
Your conversion rate is the percentage of people who make a purchase on your eCommerce store. While you can track this metric as a single data point, it makes a lot more sense to compare it to specific customer segments. Learn who is making the most purchases, the audience you should focus your marketing efforts on, and if you have new opportunities to leverage.
You can also track the conversion rate of a specific advertising campaign, look at the most popular days of the week, or break it down in dozens of other ways. You can gain a lot of insight from this metric, so it should be at the top of your list.
How much money is your eCommerce store bringing in? Much like conversion rate, this important metric should be broken down into varying customer segments. Don’t be afraid to dive deep into the data to see if you’re leaving money on the table.
Cost Per Acquisition
Do you know how much you spend to acquire the average customer? The cost per acquisition metric looks at a lot of information to come up with this number. The amount that you spend on marketing and advertising campaigns feature heavily in this calculation.
Average Order Value
The average order value looks at how much your customers spend on the typical order. Use this information to set free shipping thresholds, determine whether product pricing makes sense, or as the basis for revenue forecasting when you put together reports.
Customer Lifetime Value
Another important revenue-related metric is the customer lifetime value. Learn how much your average customer buys over the course of their relationship with you. By encouraging customer loyalty, you can bring in repeat sales that often drive this metric higher.
Overcoming sales objections can be difficult. The abandoned cart rate shows how many customers did not purchase after they started checkout. In some cases, a coupon and slight discount will help them go through with the purchase. Free shipping is a good way to bring them back to their carts. You may have technical problems on your checkout form that makes it impossible for your customers to finish the process. Keep a close eye on this data point.
How much traffic does your eCommerce website get? Look at hourly visits and annual trends. While this number doesn’t necessarily translate into direct revenue, a healthy growth in your website visitor volume gives you more opportunities to make a sale.
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