You know what your eCommerce business needs to achieve desired results? You need to work on E-COMMERCE METRICS.
To become the best eCommerce entrepreneurs or as the best eCommerce solution, you need to focus on the metrics. In fact, entrepreneurs obsess to measure and optimize the metrics giving them better sales results.
However, if your business has reached a certain point then there is no need to focus on every single metrics.
Instead, optimize and correct the right metrics.
Need to know what are correct e-commerce metrics?
In the post below I have listed the 5 essential eCommerce metrics that will have a huge impact on your business and bring it on the right track.
1. Sales Conversion Rate
As an entrepreneur, you may know that there is no single formula for success.
According to dictionary Conversion Rates can be defined as the percentage of customers who take a specific action you want.
It is the percentage of website visitors who fill out the form, call your company and actually make online purchases.
No matter what your current conversion rate is you can actually increase it. Some of the ways are-
Customer’s Safety- The consumer must feel safe while buying anything from your store. Provide with SSL certification to your website to protect their transaction.
Check For Errors In Content- Wrong Spelling and incorrect grammar can lower down your site’s impression. Always double check content before publishing.
User-Friendly Gestures- Try to include buttons that make the whole buying process simple. Add Buy Now button on product pages to avoid the buyer to scroll down the whole page.
Product Images- What is an eCommerce site without a picture? Include proper pictures of your products. They must be technically clear and taken from every angle.
Trust Factor- Live chat or the chatbots help you gain a lot of trusts. It helps you win loyalty and give your customers real-time support.
Alternative Payment Options- Trust me buyers feel secure if you give them cash on delivery options. Multiple payment options like PayPal, Credit Card and Net Banking make the buyer feel secure about the website while shopping.
2. Average Order Value
Average order value in an eCommerce Metric that measures the average of a total order placed over a period of time.
- The average amount of money each customer spends per transaction
Figured out by dividing your total revenue by the number of orders.
- This is one of the important metrics for any online store to focus on and drive key business decisions like advertising, store layout, and product pricing.
How To Improve Average Order Value
Split up your customer bases like Low, Medium and High Spenders. Also, you can categorize them on the frequency of orders made and type of products they are purchasing.
Once this is done your customers can be targeted with advertising according to their group.
High spenders can be awarded free coupons and low spenders can be targeted with discounts and offer to improve their value.
Other methods include
- Cross-selling additional products and services.
- Adding free shipping on higher orders
- GIve timely discounts
3. Repeat Customer Rate
The repeat customers spend 33% more than a new customer.
Repeat customer rate is the percentage of customers who returned to your website to make a second purchase from your eCommerce store.
You actually need 9 first time shoppers to get real conversion of 1 repeat customer!
If someone gets happy with their first purchase and with your customer service they are likely to come back to your online site.
Why Repeated Customers matter?
- Repeat customers are the crux of most successful businesses.
- They are the easiest customer segment to target.
- They are your brand ambassadors
- A repeat customer has 60%-70% chance of converting
- They are easier to sell to.
How to improve it?
- Provide great customer service
- Offer special prices, rates and offers to your repeated customers.
- Maintain database of such customers and send the relevant and timely content of offers and discounts.
- Evaluate the use of loyalty program.
- Personalised email content
4. Website Traffic
Website Traffic Is Important.
Do You know what should be your 2018 Resolution? To increase traffic to your website.
Website traffic is defined as all visitors coming to your site. You can easily get the count of traffic at your website by adding up all the visitors to your website from every source.
Website traffic still remains important in 2018, as digital marketing is at its stake, it becomes important to analyze website’s performance. It actually determines how many new customers you received and how many sales you made.
How can you improve it?
Invest in the non-paid source of traffic such as organic search results, content marketing, video promotions and email marketing to existing clients.
Also invest in paid marketing and ad campaigns such as display ads, search ads and other ads aiming to target your potential customers.
Also invest more and more in SEO – Search Engine Optimization
It is the practice of making your website as accessible as possible to reach the target customers through search engines.
While looking for traffic on your website, not only ask “How many people visited” but do check the following parameters-
- How longer your users stay?- Get the measure of metrics such as bounce rate and time on page as bringing huge traffic is easy but is useless if the traffic leaves the website within seconds.
- What percentage of visitors actually made purchases? Getting large audience is not enough if they are not right. Determine how many purchases are actually made on your eCommerce site by checking out the conversion rate.
5. Revenue By Traffic Source
Revenue by Traffic source is breaking down the total revenue of your website from organic searches, paid search, referrals etc. This eCommerce metric highlights all the sources of direct traffic for your eCommerce site.
You can view the highlights by properly tracking your eCommerce store’s activities through Google Analytics.
To Improve Revenue By Traffic Source
- Identify and stop spending the channels that don’t work
If you find out any channel that is not yielding any traffic and not delivering any results then stop spending time and money on it.
- Double your investment on the channels that are profitable
Scale up the channel that gives you traffic and invests more in it. Go this is your chance.
Okay! Keep an eye on every end that brings traffic to your site, grow comfortable understanding your business, read all the metrics and work to improve them.