Nothing is quite essential to an E-commerce site like metrics. This is because, over the years, E-commerce businesses or tech sites have evolved to become a channel where one can study trends, and so on, for their use. Such trends allow a company or business to know what’s happening in the world of business or how well a product is performing, as regarding your site.
To achieve this, you would have to keep track of all of the actions or metrics of your site as they happen. Conversion rate optimization agency Conversionrate.store has put together some of the essential metrics you have to pay attention to in order to understand your site better. Some of them include:
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Conversion Rate
A conversion rate is a percentage of the people who visit your site that makes a transaction. This could be per week, biweekly or monthly, depending on how you choose. If you have 500 visitors in a week and only 10 of them make a purchase or a transaction, then your conversion rate would be 0.02. Understanding it mathematically, it would be no. of sales / no. of visitors * 100%.
The conversion rate can provide a good insight as to the activities on your site, although you should consider using other metrics options to find out more. Also, you can set the conversion rate based on the type of device or browser used, if you want to be more specific. Doing that allows you to understand how your customers are reaching you as it could help you decide what to pay more attention to.
Again, depending on the structure and size of your E-store, you could choose to view the conversion rate based on products as it helps you know what products are in demand.
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Shopping Cart Abandonment Rate
This is another useful metric that can help you know more about your site. It simply means the number of people who add items to a shopping cart without proceeding to make a transaction – the shopping cart gets abandoned. To calculate this, no. of transactions completed/no. of carts created. So if 20 transactions were completed, from 100 carts created, the result would be 0.2.
Knowing this can help you have an idea of your conversion rate as the more carts that are abandoned, the smaller your conversion rate.
This is a very important metric as it can help you make your site better as visitors may be abandoning their carts for a number of reasons. Finding out the reasons, which could include costly shipping fees, and fixing it could help your business immensely.
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Customer Lifetime Value (CLV)
This is a metric that keeps track of how much a customer spends on your site. It allows you to see how much a customer brings in, letting you know how much you benefit from your customers and how valuable they are to your business.
There are two ways to view the CLV. It could be the Historical CLV, which shows you a customer’s value based on past purchases. This can be calculated with average order value * the average number of purchases last year.
The other is the Predictive CLV, which tries to predict a customer’s future value based on current trends.
These metrics help you to understand your customers better. You now know which group of customers to advertise more to and provide you with help on better marketing.
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Customer Acquisition Costs (CAC)
This is a metric that monitors the money you spend on acquiring customers and how many customers you acquired. This includes money spent on advertisements, campaigns, and other means. It tells you how many customers came in during the period you set out to acquire new ones. To calculate it, the amount spent/customers that came in. The amount spent here indicates what you spent on marketing and other means. So if you spent 100 on marketing and got 50 new customers, then your CAC is $2.
This lets you understand how well your ads are doing and whether you need to intensify efforts on all. You can even study how your ads on certain platforms are doing compared to others.
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Segmented Revenues
Simply put, this allows you to know where your money is coming from. This metric monitors where your customers are coming from or how people are getting into your site.
This is because we reach out to potential customers through various means, including ads and other marketing sites, which all help in bringing in customers. With this metric, you know what avenue brings in more customers as it views things segment by segment. This lets you know which channel you need to pay more focus on and how you can improve your reach to people.
These are the 5 most important metrics you need to follow to understand your site better. They not only help you understand your customers but also how well your marketing strategies are doing. Zenscrape can help your e-commerce business monitor and view these metrics and also provide other useful tips.
