For any e-commerce business owner, it is crucial to monitor and analyse the performance of their website. However, with a wide range of metrics to choose from, it can be overwhelming to decide which ones to focus on. This blog covers the fundamental e-commerce metrics that should be given priority to gain a good understanding of the website’s performance.
- One of the most significant e-commerce metrics to track is the conversion rate. It calculates the percentage of visitors who make a purchase, indicating how effective the website is in converting visitors into customers. A low conversion rate could imply that the website needs optimization to enhance the customer experience and increase sales.
- Another essential metric to track is the average order value (AOV), which measures the average amount of money customers spend per order. Increasing AOV can result in increased revenue without acquiring new customers. Offering free shipping for orders over a certain amount or suggesting complementary products during checkout can increase AOV.
- Customer lifetime value (CLV) measures the total amount of money a customer is expected to spend over the course of their relationship with the business. Offering loyalty programmes, upselling and cross-selling products, and providing excellent customer service can help increase CLV.
- The percentage of customers who add items to their shopping cart but do not finish the transaction is measured by the cart abandonment rate. Addressing these issues can help reduce cart abandonment and increase sales.
- Understanding the sources of website traffic can help make informed decisions about marketing and advertising efforts. Tracking traffic sources can identify which channels drive the most traffic and which ones need optimization. Common traffic sources include organic and paid search, social media, and email marketing.
In conclusion, tracking and analysing e-commerce metrics are vital for business success. Focusing on these fundamental e-commerce metrics can provide valuable insights into website performance and drive data-driven decisions to increase sales and profitability. Regularly reviewing and analysing these metrics is essential to monitor progress and adjust strategies accordingly, optimising the website’s performance and driving more revenue for the business.