eCommerce store owners have tons of data they can readily use as needed – daily, weekly, monthly sales; average value of items purchased; cart abandonment rates; funnel dropouts, among other things.
But of course, too much information can possibly be overwhelming and you don’t want to get lost in the depths of information available to you.
These five metrics will help track your shop’s success smoother.
Sales conversion rate
Your sales conversion rate is the percentage of people who visit your online store and make a purchase.
For obvious reasons you want a high conversion rate, right? Truth is, the average ecommerce conversion rate in the US is only around 2-3%. How do you improve your conversion then? You can try:
Speeding up your product pages.
Upload high-quality images of your products.
Optimize product listings using keywords.
Website traffic
When you’re done optimising your conversion rate, you can then start working on bringing more people to your store. This is where measuring web traffic comes in.
If, say, you have a conversion rate of 5% (50 sales at 1,000 visitors), we can assume that if we’re getting 10,000 people to visit your site, you can multiply your sales tenfold.
Of course there’s no such thing as an easy sale, but you can always ensure that people know your store. You can:
· Promote your offerings on social media.
· Optimize your site/store for search engines.
· Grow the number of people subscribing to your newsletter.
Email opt-in rate
Just as social marketing is important, eCommerce store owners should also consider email marketing particularly when it comes to generating repeat business. With an average email opt-in rate of 1.95%, get as many people on your email list as possible, even if they don’t purchase your products right away.
However, unlike the average website visitor, people who sign up for your newsletter actually show interest in your products and services. This means they are more likely to become paying customers.
One way to get people to subscribe to your emails is to offer something of value in exchange for your audience’s email addresses and contact information.
Customer lifetime value
Customer lifetime value (CLV) is the total amount you earn from an average customer over the course of their lifetime.
Your CLV is significant because it serves as a guideline for how much you can spend to acquire customers and how far you should go to retain them.
To boost your online store's CLV, work on increasing your average order value (more on that later) and cultivating loyalty among your existing customers so they become repeat buyers.
c Here are some tips to increase your average order value:
· Upsell complementary items that improve the usability of their primary purchase.
· Offer products as a package so customers get a small discount on each item as opposed to buying them separately.
· Offer free shipping on purchases above a certain threshold to entice customers to maximize their spending.
