If you are an eCommerce business, then you should be tracking your most crucial metrics. If you are not doing so, then the success of your store is at risk. You have to know what’s going on with your revenue and conversions in order to make changes that will improve things for the long term.
7 Important Ecommerce Metrics To Keep Your Site Running Smooth
In this blog post, I am going to tell you about 7 of the most important eCommerce metrics that every eCommerce business needs to track!
Obviously, sales are the most important metric to track in any eCommerce business. By tracking your sales on a daily, weekly, and monthly basis you can get an idea of how well your business is performing. This information can help you make decisions about what products to stock, what promotions to run, and where to allocate your marketing dollars.
Conversion rate is one of the most important eCommerce metrics, as it can make or break your business. The higher your conversion rates are, the more likely you’ll be able to generate revenue and grow your customer base.
This metric tells you how many people buy (convert) on an average order out of all the people who visit your store. It’s important to track this metric over time so you can see whether your efforts are resulting in an increase or decrease in conversions.
A high conversion rate is obviously a good thing, but it’s also important to know what’s causing the conversions so you can replicate that success elsewhere.
Average Order Value
This metric tells you how much customers are spending on average per order. Knowing your average order size can help you determine whether or not you’re pricing your products correctly and also provide insights into what types of products are most popular.
A high average order value is a good thing, as it means customers are willing to spend more money on your products. However, you don’t want to price your products too high or you may lose customers.
Keep track of this metric over time to see if changes in your pricing strategy are resulting in an increase or decrease in average order value.
Customer Lifetime Value
Customer lifetime value is a metric that tells you how much money each customer is worth to your business over the course of their relationship with you. It takes into account not only sales but also refunds and cancellations.
This metric can be used to determine whether or not it’s worth investing in marketing efforts that may bring in new customers, as you’ll be able to see how much each new customer is worth on average.
It’s also important to track this metric over time so you can see whether your current customers are becoming more or less valuable to your business.
A high customer lifetime value is a good thing, as it means each customer is worth a lot of money to you. However, if this number drops over time, it may indicate that you’re losing customers faster than you’re acquiring them.
Where your traffic is coming from can tell you a lot about your customers. For example, if you see that most of your traffic is coming from social media, it may be a sign that you need to invest more in marketing efforts on those channels.
On the other hand, if most of your traffic is coming from search engines, you may want to consider investing in SEO efforts.
It’s important to keep track of this metric over time so you can see whether your traffic sources are changing and how that impacts your business.
This metric tells you which products or categories are most popular with your customers.
Knowing what types of products and/or services people are looking for can help inform future product development efforts, as well as marketing campaigns. It may also be helpful to track how this number changes over time so that you know whether new items are becoming more or less popular.
This metric tells you how much it costs to ship each product so that you can determine whether or not your shipping prices are competitive with the market and keep them in line with overall revenue goals. It’s important to track this number over time so that changes in your pricing strategy don’t have a negative impact on your bottom line.
All of these metrics are important for understanding how your eCommerce site is performing and where you can make improvements. By tracking these 7 metrics, you’ll be able to keep your eCommerce site running smoothly and increase your sales and profits.
If you’re not currently tracking these 7 metrics, start doing so today to get a better understanding of how your eCommerce site is performing. And if you are tracking these metrics, make sure to review them regularly to ensure that your eCommerce business is on track.