Setting up an e-commerce store is easy but running it successfully is what challenging. To run it successfully you need to know the data, if you don’t keep track of your e-commerce metrics you can’t survive. You have to know how business is performing and compare progress.
The successful e-commerce entrepreneurs make decisions based on metrics. However, there are thousands of metrics to track but you need to optimize only those which are right for your business.
Along with analyzing what’s working you also need to know what’s not working, what are the wrong practices you are following or metrics you are monitoring.
We often have seen many posts regarding e-commerce metrics to follow today we’ll show you metrics which are not relevant or generally marketers misinterpret it.
Are you getting the relevant traffic? If you are getting a decent amount of traffic but not getting the sales, you probably need to analyze the metric in another way.
Quality Traffic- In spite of good numbers you are not getting sales, you may be missing the quality traffic. Bad SEO or ad copy may generate irrelevant traffic. Make sure all the keywords, descriptions and other things are perfectly aligned to your business.
Website design- Poorly designed website can be another reason why your traffic is not converting into sales. Slow loading, poor interface, security issues come under it.
Conversion rates range from 4% to over 14%. The number of visitors/leads converting into customers is what conversion ratio is. Conversion ratio depends on many things such as industry, country, devices visitors are using, etc,.
Conversion by industry- Conversion rate varies from industry to industry.
Segmenting by device- According to a study, the UK has a higher conversion rate than the USA. The global trend shows that people usually buy much more often on desktop (3.63%) and tablets (3.14%) than smartphones (1.25%).
Net Promoter Score
It is a simple survey that measures your customers’ satisfaction with your products. How likely your customer would like to recommend your store? It scoring scale ranges from 1 to 10. You may get the wrong score if you don’t keep the following rules in mind.
Sending the survey at the wrong time- Send survey from time to time depending upon the situation. For example, if someone wanted to return certain items, send a short survey, ask the reason and other related things. Ask customers to share their feedback regarding products, logistics, etc, once they received the order.
Asking the wrong questions- Ask questions that are relevant to your audience and their buying stage. For example, if a buyer is at the initial stage, ask questions about their welcome experience, onboarding issues (if any), etc.
Other metrics you need to focus on:
- Customer Lifetime Value
- Customer Acquisition Cost
- Revenue by Traffic Source
- Shopping Cart Abandonment Rate
- Average Order Value
How to measure your e-commerce success?
To measure your e-commerce success, you should have three goals:
- Selecting the accurate key performance indicators (KPIs) and monitoring their metrics
- You must have an analytics tool to measure all the metrics
- Setting benchmarks for your e-commerce KPI list to track success.
Any e-commerce store, small or large, should pay attention to these metrics and other too such as email open rate, email opt-in, percentage of returning customers, etc.
Tracking all the desired metrics plays a very vital and crucial part of building a viable e-commerce store.