Ecommerce Metrics For 2020: Every Entrepreneur Should Follow
It is like walking on a street with eyes shut when you are running an e-commerce Company and are not keeping your e-commerce business records. You can’t survive in this competitive industry if you don’t track your progress. The most popular e-commerce firms are metrics dominated.
Each metric must be monitored in time so that you may know your business is going in which direction. Data always influence every marketing and promotional decision. You can’t make advancements in your business if you don’t record and assess pertinent data. Now the question arises,” how the industry success can be tracked”. The answer is so simple you just need to make 3 basic goals as your priority.
- First of all, you just need to explore the right key performance indicators (KPIs) and then follow the appropriate matrix.
- Utilize different analytics to measure all matrixes
- Setting genuine benchmarks for your business
There should be some basic ecommerce metrics that you need to focus on first. Here is a bar chart showing that 60% of top companies monitor the visits regularly:
Let’s discuss a few eCommerce metrics that you should monitor to keep track of your B2C business expansion.
Sales Conversion Rate
If you’re getting too much traffic to your site, you are very excited about the traffic, but the picture doesn’t look rosy when you see still you have very fewer sales in the same period. Your website traffic may be boosting every week, but how about your sales? Here, you need to measure your exact and overall sales conversion rate, just from the initial click to purchase. You cannot take advantage of the much traffic until it is covered into actual revenue. In such a case, you should consider looking into a conversion optimization program.
Average Order Value (Aov)
A business grows when its consumers are willing to spend more money on its products over time. However, if you don’t know where your consumers are spending, how will you get your patrons to spend more tomorrow. If you want to understand better how much your visitors are spending, just track the Average Order Value.
Customer Lifetime Value (CLV)
Try to keep your old customers happy is quite easy than getting new consumers. Happy customers come back easily and buy numerous products. Moreover, business experts say that attracting new clients cost five times more than keep an existing one. So, it is quite important to take a CLV metric. It helps you to know how much revenue an old consumer produces for your business over the entire time of your relationship with them. Generally, there are two types of CLTV:
- Historical CLTV – a costumer’s present value based on their past purchases
- Predictive CLTV – a forecast of a costumer’s future CLTV based on past behavior
Cart Abandonment Rate
The abandonment of online shopping carts is a major issue for e-commerce and B2C companies, the cart abandonment rate in certain industries as high as 82 percent. There are several reasons why customers leave their website without making a purchase, from technical issues to delivery costs to unsecured and unpredictable payment options. To reduce cart abandonment, first, try to know what the major issue is and, improve it.
If the cart is abandoned due to unsecured payment options, make sure to install an SSL Certificate on your e-commerce. If you have multiple domains, then you can think of a COMODO SAN SSL certificate. This certificate will cost you low, secure your website and even reduces your cart adornment rate.
You can check your cart adornment rate by using the following equation:
Number of completed purchases / Number of shopping carts created
Social Media Conversion Rate
Millions of followers on Instagram doesn’t mean to your business if none of them buy even your single product. Measuring social media engagement is just like tracking email engagement metrics in that it’s easy to get distracted by vanity metrics that don’t point to actual success. For instance, you won’t have a true picture if you focus only on retweets or likes. You must track more significant metrics like average click per posts, and if you do this on every social media channel individually, you will get better results. For calculating social media conversion rate, use this equation:
Number of sales from social media / Number of total posts
Customer Acquisition Cost (CAC)
Customer acquisition cost (CAC) is crucial to achieve profitability and to consider the return on your marketing investment. If any certain channels or certain types of campaigns cost less in acquiring customers, you might spend more on these channels for maximizing profits. To get even more return on investment, you also need to know which channels and campaigns should be optimized. Here is the equation to calculate your customer acquisition cost:
Total amount spent on client acquisition / Total clients obtained
To Wrap Things UP
These are the very top indicators you need to track as an eCommerce marketer. Many more digital commerce metrics are there which can help you better understand your industry or your clients. You are the only one who is the most aware of your business, but if you keep an eye on the right metrics, you’re more aware than ever and will always improve your business.
About Michelle Joe: Michelle Joe is a blogger by choice. She loves to discover the world around her. She likes to share her discoveries, experiences, and express herself through her blogs. You can find her on Twitter, LinkedIn, Facebook