Starting an eCommerce business may seem effortless, but maintaining it is challenging. As a retailer or owner, you know metrics provide you with a complete bird’s-eye view of your business. Still, you likely feel uncertain about which E-Commerce performance metrics to track, how to measure your optimization strategy and find out what is a good eCommerce conversion rate, right?
People often get confused about metric vs measure?
Let’s explore!
Metrics and measures are often confusing as they are sometimes described as the same thing. A Metric is a quantifiable measure. They are used to track specific processes, such as the conversion rate of a marketing or sales initiative. A Measure is a classification of raw data such as a number or value.
Here are the top 7 performance metrics and E-Commerce KPIs Online Stores Should Monitor
1. Sales Conversion Rate
The E-Commerce conversion rate in google analytics is the number of transactions to sessions that happened on your store. This conversion rate optimization is essential because it measures your customer acquisition costs. Therefore, by disregarding this vital E-commerce metric, companies may mistake wasting time and effort over irrelevant marketing attempts.
2. Customer retention rate
Customer retention rate measures the number of customers a company retains over a given period of time. If you’re losing customers, you know something is wrong with your marketing strategy. The CRR eCommerce metric helps you track your ability to hold on to consumers once you gain them. It is associated with customer satisfaction and loyalty, so its value should not be underestimated. So, it’s essential to keep track of your CRR.
3. Website Traffic
Website traffic refers to web users who visit your website. If you want to know how to increase the eCommerce conversion rate, then website traffic is a solution for you! It measures the volume of users visiting a website every day, including real-time visitor sessions, page views, etc. It helps you determine the weakness of your e-commerce site and assist businesses to strategize for better visibility.
4. Cart abandonment rate
The shopping cart abandonment rate is the percentage of customers that add items to a shopping cart and leave before completing checkout process. And it hurts to see potential buyers load up a shopping cart then leave it before purchasing. There are multiple reasons why this might be happening to your site, and to resolve this, you have to track them and point to more significant problems occurring on your site. Here, CAR plays an essential part!
5. Average order value
Average order value is the average amount a customer spends on each order from your store. You can quickly increase your total revenue by increasing the average order value, even with no new traffic. So, in the end, a higher average order value means increased profits.
6. Customer Acquisition Cost
Customer acquisition cost (CAC) is the amount of money a company spends to get a new customer. It helps measure the return on investment of efforts to grow their clientele. Your CAC tracks the average eCommerce conversion rate; it includes everything from marketing to sales costs to the resources and hosting your site.
7. Email marketing metrics
Email is an essential part of eCommerce marketing, and so it also needs to be measured. The primary email marketing metrics are:
- Open rate
- Click-through rate
- Unsubscribe rate
- Bounce rate
Final thoughts
Ecommerce performance analytics and metrics help companies identify if their website is effective enough to reach their business targets and keep track of possible mistakes that send customers away. To determine all these issues, you need to understand the KPIs of the business.
With proper metrics and exclusive KPI dashboards and Data Visualization Tools, Ubiq guides companies in decision-making, let you know how to increase eCommerce sales strategic planning and assist you in finding the average conversion rate of your eCommerce site.
Bonus Read: Things Ecommerce KPI Dashboard Include
