8 Important eCommerce Metrics That Help Improve Your Online Business
If you own an eCommerce store, you will know that when it comes to boil and you want to know the hard facts, eCommerce metrics come in handy exactly at that moment. eCommerce metrics are numbers that provide valuable information about several processes that run on an eCommerce website. These numbers provide accurate measurements about the processes that are going on within the eCommerce system, which when properly understood, help us in making our businesses perform more accurately.
Since each part of the eCommerce process consists of pre-sales, sales, and the post-sales activity, it is necessary that you understand the role that your online business plays, so that you can identify your weak spots and perform better. Some of the most important metrics are discussed below:
1. Conversion Rate : By monitoring your conversion rates, you should be able to understand at which point in your sales funnel, you are gaining or losing customers. This will prompt you to focus on areas that need improvement.
2. Traffic Sources : Traffic sources along with related metrics are also relatively important. Such metrics provide information about the origin of your website visitors along with their visiting patterns. Additional information about inbound links such as emails, affiliates, paid search as well as other statistics, will also help you in improving your business strategy. You can utilize Google Analytics to track such information.
3. Google analytics also provides a straightforward way to measure statistics such as bounce rates, which gives you information on which pages in your website need to be improved. These pages are those which people leave straight away without taking any action on your site. Exit pages tell you from which pages people are generally leaving your website. Also, devices used tell you which devices your website users are using, so that it is feasible for you to develop more mobile websites or apps so that you can make your customer’s experience simpler.
4. Page Behavior: This information should also technically includes information from which pages visitors are entering your website. This information also gives you insight into which pages frustrate your users and abandon your website.
5. Yet another set of metrics are your sales metrics – which includes metrics such as average order value (AOV), the number of orders, and more. Here, the AOV is of extreme importance. Thus, even if your conversions remain constant, you will notice that even if conversions remain constant, an increase in the AOV will lead to an increase in your overall revenue.
6. Keep a tab on customer related metrics as well such as new versus returning customers, top ten customer locations, newsletter sign-ups, and others. They will help you to finalize your customers and you can also come to know how to increase their levels of satisfaction.
7. In case you are banking on campaigns as well as vouchers for your eCommerce website, it you need to keep an eye on each marketing activity that you organize. This includes the CTR for each activity, as well as the number of coupon codes redeemed, campaign impressions and so on.
8. If you are using campaigns and vouchers on your eCommerce site, it is extremely important to keep an eye on the reach of each marketing activity that you organise, including the click-through rate for each activity, number of coupon codes redeemed, campaign impressions and so forth. This would allow you to understand which campaigns are more successful, and which need more attention and optimization.
Hence, all kinds of metrics can give you information for improvement as well as allow you to take an informed decision on various aspects of your sales funnel.