If you are a business owner with an eCommerce store you are probably wondering how to measure the success of your business. To see how well your online store is performing, you can track certain eCommerce metrics.
Top Features That An Ecommerce Site Should Have
There are a lot of metrics to help you analyze your business strategies but you need to figure out what metrics are important for you. Those metrics are the KPIs –Key Performance Indicators- for your venture.
However, there are certain metrics that every eCommerce store owner should be tracking right now:
- Conversion Rate
Conversion rate is perhaps the most crucial metric that you should be tracking to analyze your store’s performance. It is the number of people that are converted from just an audience browsing through your website to customers who make a purchase. Tracking the conversion rate will indicate if your product/service is in demand if your marketing strategies are working etc.
- Traffic Source
Knowing where are most of your potential customers are coming from will prove beneficial for you because then you could plan accordingly to expand your existing audience and customer base. Traffic source means the web pages that are leading the people to your website. For instance, most of the traffic at your store might be coming from platforms like Instagram and Facebook. So you would know that’s where the advertising and marketing need to be focused.
- Social Media Performance
Talking about Instagram and Facebook, it is imperative to track how your business’s social media pages are performing. This can be figured out by analyzing the amount of engagement your pages have. You can look at the number of likes, share, and saves. You can analyze how many are interacting with your stories etc. This way you would know what people like and dislike.
- Average Order Value
Average Order Value (AOV) is an important eCommerce metric to understand your performance. AOV is the average amount each customer spends on one order at your online store. Your AOV will tell you how interested people are in your products. It could help you make changes in the layout of the products. For instance, you could put items frequently bought together closer to each other so that customers are prompted to put them into their cart. To increase your AOV you could offer discounts or free products with a minimum amount of order.
- Cart Abandonment Rate
Cart abandonment rate refers to how many people visiting your store add products to the cart but leave without purchasing them. Cart abandonment rate can indicate severe problems if it is high. It could point towards technical issues such as a slow loading checkout page or a lack of guest sign-up option etc. It could also indicate the need for an additional incentive during checkout to make the customers buy what they selected.
- Refund & Return Rate
As the name suggests, refund and return rate on a website means the number of times a product is returned and refunded. This tells the business owners directly about their product. You could know if the product is popular enough if you need to upscale the quality etc.
- Reviews
The kind of reviews you receive for your products and your website are important metrics because these come directly from the customers. So you don’t have to analyze data but are directly informed about what’s working for your business and what you need to improve.
Conclusion
Ecommerce metrics are important to track to understand how well your business is performing and what changes you need to bring about to increase overall sales and profit. These metrics include but are not limited to conversion rate, cart abandonment rate, traffic source, reviews, average order value, etc. Even social media performance signals a lot about your business performance online