In the fast-paced world of eCommerce, it’s always important to keep track of how your business is performing. This is where monitoring and analyzing key eCommerce metrics come into play. Knowing these metrics allows business owners to adjust their strategy in real-time and make informed decisions that can lead to growth and success.
Let’s take a look at the most important eCommerce metrics you should be monitoring, and how to analyze them effectively.
Sales Performance Metrics
Sales performance metrics measure how much money you’re bringing in through your eCommerce store. These metrics comprise of several factors, including sales, revenue, average order value (AOV), and customer lifetime value (CLV).
Sales – A basic metric; this calculates the total number of orders placed through your store.
Revenue – This calculates the total amount of money gained from sales through your store, including shipping costs and taxes.
Average Order Value (AOV) – This metric calculates the average amount spent by a customer in a single order.
Customer Lifetime Value (CLV) – This metric determines the total revenue generated from a single customer during their lifetime of shopping on your store.
Conversion Rate Metrics
Conversion rate metrics measure how effectively you’re converting visitors to paying customers. When you’re keeping track of your conversion rates, you can identify specific behaviors or changes that lead to increasing conversions.
Conversion rate – The percentage of visitors to your eCommerce site who complete a desired action. These desired actions vary depending on your goals, which could be making a purchase, filling out a form, or creating an account.
Cart Abandonment Rate – The percentage of visitors who add items to their cart but then don’t complete the purchase.
Website Traffic Metrics
Website traffic metrics measure how effectively you’re directing visitors to your website and how engaging the content on your website is.
Traffic Source – This identifies the platform that brings in visitors to your eCommerce website. It could be direct search, social media, email marketing campaigns, or paid advertisements.
Page Views – The number of times your website has been viewed
Bounce Rate – The percentage of visitors that leave your website after only viewing one page.
Analyzing eCommerce Metrics
The first step to analyzing eCommerce metrics is to determine what metrics you want to track, why you want to track them, and how you plan to measure them.
Once you have your metrics in order, you can use dashboard tools such as Google Analytics to view and compare data on a day-to-day, week-to-week basis. You can use this data to target specific areas of your website, products, and promotions that need improvement, adjust your budget to focus on key performing campaigns and products, and implement changes to drive success.
In conclusion, monitoring and analyzing eCommerce metrics is an essential part of running a successful online store. By keeping track of the numbers, businesses can make informed decisions in real-time and optimize their online operations for success. By focusing on sales performance metrics, conversion rates, and website traffic, anyone can take their online business to the next level.