In online business, it’s easy to get lost in e-commerce numbers. The sheer amount of potential indicators to track and measure can be intimidating, to say the least. However, not all measurements are as relevant as others, and defining the key performance indicators (KPIs) you need to track will help you improve the success of your online store.
Reliable growth in online sales results from tracking performance in various areas of your organization over time. Keeping track of the correct indicators will allow you to enhance conversion rates over time.
In this answer, we have highlighted the top 5 metrics that every e-commerce website marketing manager should know.
1. Product Discovery Metrics
It may sound obvious, but you won’t be able to attract people to your site unless you raise awareness of your brand, which leads to their discovery of it. These metrics will assist you in measuring your activities that promote awareness and discovery.
2. Consideration Metrics
You will not have a buyer if they do not visit your website. Now that they’re aware of your brand, let’s create some measures for directing them to your website. There are numerous KPIs in this stage of the funnel, so we’ll simply look at a handful.
- E-mail click-through
- Cost per Acquisition (CPA)
- Organic Acquisition traffic
- Social Media Engagement
i) Likes per post
ii) Shares per post
iii) Comments per post
iv) Clicks per post
3. Conversion Metrics
Now that you’ve had a visitor to your store, how can you gauge your success in converting them from a store visitor to a paying customer, adding things to their shopping basket, and actually checking out? These measures should assist you in doing so.
- Shopping cart abandonment rate
- Checkout abandonment
- Micro to macro conversion rates
- Average order value (AOV)
- Sales conversion rates
4. Retention Metrics
Depending on the source, getting a new customer can cost anywhere between 5 and 25 times more than retaining an existing one. Regardless of the exact amount, the evidence strongly suggests the importance of keeping those consumers you’ve converted.
- Customer Retention rate
- Customer lifetime value (CLV)
- Repeat customer rate
- Refund and Return rate
- E-commerce website churn rate
5. Advocacy Metrics
This is unquestionably the most neglected metric, which is bad because you should put on your white gloves. These consumers are a goldmine for you, so treat them as such. These measures will assist you in quantifying your efforts to demonstrate that you care.
- Net Promoter Score (NPS)
- Subscription Rate
- Program participation rate
In short, you should know that the knowledge of the e-commerce website metrics stated above will assist you in determining how well you’re executing those activities and highlighting areas where you can fine-tune your plans and tactics to boost your store’s performance and bottom line.