So, you have created an eCommerce store, and now you are looking for ways to achieve lasting success. Perhaps, you already know how essential it is to keep an eye on the eCommerce metrics. But which metrics should you pay closer attention to in order to make informed, data-based decisions?
Well, below are the five most important eCommerce metrics every marketer should focus on-
Customer Retention Rate
If you find that the number of customers is falling, or you are losing customers as quickly as you acquire them, it is something to focus on. Either there is a problem with your products, or the customer services are not up to the mark.
Therefore, it is crucial to track the CRR or customer retention rate metric. It tells you about your ability to retain the customers as you gain them. Just click on the audience an overview in Google Analytics, and you will get valuable information.
It provides you with a glimpse of how many liked your online store to visit it again. You can also calculate the percentage of returning customers.
Shopping Cart Abandonment Rate
When shoppers load up their shopping carts but don’t complete their order, it is called the shopping cart abandonment rate. Some of the most common reasons why it happens are-
- High shipping costs or additional fees.
- Payment security concerns.
- Very long checkout process.
- Poor user experience, etc.
It is an essential eCommerce metric to track because it lets you know the problems occurring on your website. To calculate this, divide the number of cart checkouts completed by the total number of carts loaded at a specific period of time. And then multiply the results by 100.
Website Conversion Rate
Since you are running an ecommerce store, you might be tracking some form of website conversion rate. However, you need to stress the value of this metric and find out how this value relates to the other metrics.
If you find that the conversion rate is declining, below are a few things you can do to improve it-
- Use high-quality homepage design.
- Offer discounted shipping.
- Use exit-intent pop-ups to convert the customers.
- Have a unique selling proposition, etc.
Customer Acquisition Cost
It is the total amount you spend in order to bring a new customer. As most new companies start with high marketing spending to attract new leads, this metric is also known as ‘startup killer.’
You can calculate this metric by dividing the marketing costs by the total number of new customers found during a specific time period. If you find that the metric is increasing over time, it may be a warning sign that you need to focus on improving your products or user experience.
Amount Of Traffic From Different Sources
Knowing where most of your traffic is coming from will tell you which marketing strategies are effective. This way, you will be investing money into the most useful traffic sources. While referral, organic reach, social, and direct are the most common sources, they also include affiliates, paid search, email, or other advertising.
You can easily find this data on Google Analytics by clicking ‘Acquisition’ and ‘Overview’ from the dashboard. For more details, click ‘All Traffic’ and ‘Channels.’ This data will help you know which pages the visitors are looking at, duration, and more.
To Sum Up
While there are many other ecommerce metrics, the ones mentioned above are the most important to track. It will help you optimize your store, improve the decision-making, and offer a great customer experience, and most importantly, revenue. It will boost the store’s overall performance.