Most business owners are always on the lookout for ways to grow their venture. But with so many different ecommerce metrics out there, it’s difficult to know where to start.
That’s why we decided to explore some of the most essential metrics you should start tracking sooner rather than later. By understanding them and their significance, you'll be able to identify growth opportunities and improve your bottom line. So, if you're ready to take your ecommerce business to the next level, read on!
Top Ecommerce Metrics
Let's start with the basics. First of all, you have to be aware of your website's traffic. This includes not only the number of unique visitors but also their behavior while on the site.
How long do they stay? What pages do they visit? Do they add any items to the shopping cart? Knowing all this will give you a good idea of how well your store is performing and where you need to make improvements.
Next, you need to track your conversion rate, one of the really important ecommerce metrics. Basically, it represents the number of visitors that take the desired action on your site divided by the total number of visitors.
This desired action could be anything from making a purchase to subscribing to the newsletter. Among other things, ecommerce conversion measurement tells you how effective your store is at converting visitors into customers or leads. If this particular metric is unsatisfactory, you could consider a conversion rate optimization tool to improve it.
Then comes the average order value, which is the total amount of money spent by customers divided by the number of orders placed. It allows you to see how much each customer spends on average and can give you a good idea of which products are selling well and which ones might need improvement.
Customer lifetime value is another of the ecommerce funnel metrics and represents the total amount of money that a customer spends on your site over the course of their life. This metric allows you to see how much each customer is worth to your business and helps you decide how to organize your marketing efforts.
We also need to mention the shopping cart abandonment rate. It shows what percentage of visitors add items to their shopping cart but leave without completing the purchase. A high shopping cart abandonment rate can be a sign that your store is not user-friendly or that the checkout process is too long and complicated. If you see a high abandonment rate, it's important to take a closer look at your store and see where you can make improvements.
Finally, consider engagement on your website. It basically includes impressions that designate how many followers or subscribers engage with your posts. This could mean stuff like shares and likes but also clicking through on ads.
These are just a few essential metrics you should be tracking. By monitoring them, you can get a good idea of how well your store is performing and where you need to make improvements.
Essential Ecommerce Search Metrics
Now, let’s look at the most important ecommerce search metrics. These measure how well your store's search engine is performing. They can help you determine whether the search engine on your website is providing relevant results to customers and how well it ranks those results.
The most important ecommerce metrics in this category include:
- Search engine ranking —it measures where your store's search results appear in relation to rivals’ results. A higher ranking means your store's results are more likely to be seen by customers.
- Click-through rate (CTR) — this refers to how often customers click on your store's search results. A higher CTR means that customers are finding relevant results.
- Conversion rate — this is another top ecommerce search metric, showing how often customers who click on your store's search results continue to make a purchase. A higher conversion rate means that search results are more likely to result in a sale.
Now that you understand the essentials of ecommerce search, it’s time to put what you have learned into practice. Experiment with different keywords and phrases to see which ones produce the best results for your business.
Keep track of your findings in a spreadsheet or other document so you can refer back to them later. Remember, as your business grows, you may need to adjust your search strategy accordingly. Alternatively, you can hire some of the top ecommerce SEO companies that handle everything from keyword research to product page and store navigation optimization.
Key Ecommerce Financial Metrics
The next group of metrics is what we like to call “financial metrics.” As the name suggests, these deal with your business’s finances, including revenue and profitability. Revenue is the total amount of money your business brings in, while profit measures how much money your business makes after expenses have been deducted.
There are a number of different financial ecommerce metrics to track, but some of the most important ones include:
- Gross merchandise value (GMV) — the total dollar amount of all products sold on your site, regardless of whether or not those products were sold at a profit.
- Gross profit — the total amount of money your business makes from product sales after the cost of goods sold has been deducted.
- Operating expenses — the total amount of money your business spends on operating costs, such as rent, salaries, and marketing.
- Net profit — the total amount of money your business makes after both revenue and expenses have been taken into account.
You should feel more confident now to measure and analyze your business performance. Track your progress and make changes where necessary to continue improving your online store.
While we’ve only scratched the surface of the key ecommerce metrics, these are some of the most important ones for online businesses to track. It is important to remember that these metrics are not only useful for online businesses but brick-and-mortar stores as well.
By understanding these numbers and how they impact your business, you can make better-informed decisions about the products you offer, the services you provide, and how to appeal to your target market.
Ecommerce Metrics FAQs
What are metrics in ecommerce?
Generally speaking, metrics in ecommerce are performance indicators that businesses track to gauge their online success. This can include anything from web traffic and conversion rates to average order value and satisfaction ratings.
By tracking these various metrics, store owners can get a better sense of which areas of their business are performing well and which could use some improvement.
What are the key metrics to track in any ecommerce model?
There are a few key metrics that you should track in any ecommerce model. The first is obviously sales. You should also track website visits, conversion rates, average order value, and customer acquisition costs.
If you're looking to improve your ecommerce business, you'll want to focus on increasing website traffic and improving conversion rates. You can do this by creating more engaging content, designing a better user experience, and optimizing your checkout process. Increasing average order value is another key goal, as is reducing customer acquisition costs.
How are ecommerce metrics measured?
There are a variety of ecommerce metrics that can be measured, depending on the specific goals of the business. Some common ones include website visits, conversion rates, average order value, and customer lifetime value.
Each of these metrics can provide valuable insights into how well the ecommerce business is performing and where improvements can be made. For example, if conversion rates are low, the business may need to focus on improving its website design or marketing efforts to increase traffic and encourage more customers to make a purchase. Alternatively, if the average order value is low, the business may need to consider offering more products at lower prices or increasing the amount of money customers spend per order.
How is ecommerce growth measured?
Ecommerce growth can be measured in a number of ways, including with ecommerce KPIs, but perhaps the most common is by looking at total sales figures. This includes both online and offline sales, as well as things like subscription revenue. Another way to measure ecommerce growth is by looking at traffic metrics, such as unique visitors or page views. This gives you a sense of how many people are shopping online, even if they may not all be buying anything.
Finally, you can also look at conversion rates, one of the ecommerce metrics that measure how many visitors to your site actually make a purchase.