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Metrics: Are metrics actually important for business decision-making? Yes, to take your eCommerce business to the next level you must realize the importance of information and track all the metrics that are relevant to your business.
Metrics: Are metrics actually important for business decision-making? Yes, to take your eCommerce business to the next level you must realize the importance of information and track all the metrics that are relevant to your business.
The most successful and best eCommerce entrepreneurs make decisions based on the metrics, and they are so obsessed with these metrics because these metrics are the key to their store success.
But before we jump onto these e-commerce metrics let’s first read about what is Metric?
Metrics is a quantifiable measure that is used to assess, compare and track the website performance. These metrics will help you to get important and accurate data related to your e-commerce storeand based on these numbers you can determine whether your efforts are moving towards business failure or success.
Below are some of the most important and top eCommerce metrics that every store owner must track and optimize as they will create a huge impact on business.
There are times when customers add the products to the cart but not complete the purchase. Abandonment rate shows the store owners the percentage of online visitors who actually added the products to the cart but failed to make a purchase compared to the actual customers who placed an order.
Based on a number of various ecommerce studiesthe average shopping cart abandonment rate is 68%. So if your rate is higher than the normal cart abandonment rate then the reasons behind them can be a complex or lengthy checkout process, extra shipping cost, concern about payment security, required sign up, etc.
So if your cart abandonment rate is higher compare to the normal rate then you can go through some of the best ways to reduce cart abandonment rates listed below:
Conversion rates are a percentage of all the online visitors who went through your sales and campaign strategies and got converted to sales. There might be a question of what is a good conversion rate then let us share with you that it varies based on different industries. The average conversion rate for eCommerce sites is 2.86% globally.
Source: Invesp
The main motto is to understand the average eCommerce conversion rate and benchmark your store performance based on it. Once you come to know that whether you are meeting this average rate or not, try to improve conversion rates. Check out below the eCommerce conversion rate by industry.
Now you might have a question that “What are the best ways to increase eCommerce conversion rates?” So here are some of the ways that can help you to boost your eCommerce conversion rates.
Customer Lifetime Value is the amount your customer pays to your brand throughout their entire future relationship with your brand. You can consider it as a monetary value of the customer relationship to the brand.
Your average customer lifetime value will be the length of time your customer relationship lasts before they have been inactive on your website or stop purchasing from your brand permanently.
Below are some quick tips to increase the customer lifetime value:Customer Retention Rate is the percentage of customers a company retains over a period of time. Returning customers are more profitable than new customers. Also, the retention impacts the average customer lifetime value and therefore the more profitable customer becomes.
Next, you need to collect have below data to calculate the customer retention rate:
S = No. of existing customers at the start of the time period
E = No. of total customers at the end of the time period
N = No. new customers added within the time period
When you have all the above details, you can calculate the retention rate using below formula:
Customer Retention Rate formula: [(E-N)/S] X 100
Check these ways to reduce customer retention rate:Revenue per visitor metrics helps to measure the average revenue a brand can obtain from a single website visitor. It will be calculated over a certain period.
When you get this actual value, you can understand your conversion rates and other operations at your store. Also, you can compare your revenue per visitor to the industry average and if it is low then you can work on it by improving ways to increase this rate. And if the revenue per visitor rate is higher than the average value then also you can analyze it and work on more marketing skills so that you can attract more customers
Ways to increase your revenue per visitor (RPV)Average order volume (AOV) tracks the average amount spent each time a customer places an order to your eCommerce store. You can use the below formula to calculate the average order value:
Customer Acquisition Cost can be calculated by dividing the overall cost spent on marketing expenses, or you can say for acquiring customers by the number of customers acquired during the time money was spent.
Here are some of the best ways to reduce customer acquisition costsSource :- webflow.com
Email click-through rate shows the engagement of your emails that you sent to your customers as an email campaign. It basically indicates the number of customers engaged or at least clicked any one of your email links in your marketing campaign. And it is one of the best metrics to know that your efforts are worth the investment. But yes, these numbers and an expected result may vary as per the industry your business belongs to. The below list includes the email benchmarks for all industries.
Source : Campaign Monitor
The main goal for your email campaigns should be for customers to click on your Call to Action (CTAs). The higher the engagement in your emails, the greater your Return of investment will be for your email campaigns.
Let us share with you some of the best ways to increase your click-through rate.
To grow your online store presence and to boost sales you have to be very careful about tracking all the data and information from the very initial stage of your eCommerce store. Otherwise, you might miss the important point that needs to be taken care of to improve your online store at the time of decision-making.
We hope that our article helps you to learn about the fundamental eCommerce metrics that might help you. If you still have any queries about eCommerce metrics or any other Magento eCommerce inquiry you can contact MageAnts to get a consultation and get your queries solved from our expert. We are always looking for challenging projects and our experienced team always tries to provide the best possible solution to customers. Get in touch with us for more!
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