Do you often find yourself amidst a massive pool of data while running your eCommerce or online business? Performance tracking is important but what’s more vital is finding ways to track the performance.
Generally speaking, it is not easy for businesses to drive meaningful insight from massive customer data. Getting customer data is easy but sorting and analyzing the same for key metrics is perplexing and time-consuming.
In this write-up, we have curated a list of key metrics that will make performance tracking of your online business more seamless and more productive than ever.
Sales Conversion Rate
The sale conversion rate is equivalent to the percentage of the site’s visitors or the buying customers. The formula for the sale conversion rate is as follows
Number of sales/Number of site’s visitors x 100% = Sales Conversion Rate
So, if 100 visitors make a visit to your online store and only 5 customers finalize the deal, the conversion rate would come out to be 5 percent.
For all store owners, a high conversion rate is a priority and it is not something one can achieve overnight. There are numerous factors that affect the sale conversion rate. Some of these include site speed, value proposition, SEO effectiveness, ad copy, and so on.
Problems with all these factors will lead to poor conversion rates. Therefore, your priority should be fixing them upfront whenever you experience poor sales figures for your store.
Once you resolve the fundamental issues with your store, your next step should be attracting more visitors. This is where tracking website traffic comes into play.
The increased traffic often leads to a better conversion rate. You can use various tactics to boost store traffic such as; Promoting the store or its offerings on different social media platforms. Providing incentives to potential customers, including free shipping. Improving SEO of the store
Email opt-in Rate
Email marketing still serves as a boon for businesses looking for remarketing their products. Sumo, the creator of the leading email capture tool, has recorded a 1.95% email opt-in rate based on an evaluation of 3.5 b emails. This translates to almost two out of every hundred visitors subscribing to their email list.
Similar to store traffic, the objective here is to encourage as many prospects for email subscriptions, even if they are reluctant to make the immediate purchase.
But, unlike store visitors, subscribed customers are more likely to know about your offerings and their iterative updates, if any. This implies they may turn into paid consumers in the near future.
Do not expect your prospects to provide you with contact details unless you offer some value to them. Focus on offering them something like a code or voucher in the first place before enticing them to sign up for your newsletter.
This is the ideal way to build a long-lasting relationship with customers and increase your email list.
Customer Lifetime Value
Customer Lifetime Value refers to the overall amount of money a consumer is likely to spend with your products or services, during the lifetime of an average business interplay. Or it can be understood as the total amount of what a business owner earns from average consumers over their lifetime.
That means if a given customer makes four transitions with each one worth $15 throughout their life, the CLV would come out to be $60.
You still have to subtract the acquisition cost from this figure to determine the exact earnings.
Your CLV is vital as it can identify the acquisition cost per customer so that can easily tweak your spending accordingly for future campaigns.
To improve CLV, start improving the average order value and keeping your onboard customers elated with different incentives. This would also help increase repeat purchases.
Average Order Value
Obviously, you want your store to perform better in terms of sales and revenue.
The average order value is equivalent to the average value of each successful purchase that took place in your store.
To estimate this, take the sum value of all the purchases and divide it by the number of carts.
Keeping a tab on this metric will enable you to underpin the benchmark and determine how to encourage customers to increase their spending on every purchase.
Try the following to boost the average order value
- Offer incentives like free shipping to sweeten the deals.
- If possible, offer complementary items for free that increase the utility of the primary purchase.
- Bundle your product as a package so the end-users get access to a small discount on each item.
Customer Acquisition Cost (CAC)
As the name suggests, the customer acquisition cost refers to the overall cost involved with the acquisition of each customer.
CAC encompasses everything from sale costs and marketing to the cost of leveraging the team and hosting your team.
Apply the following tactics to keep your CAC under control:
- Use referral marketing to motivate the prevailing client base to invite more leads.
- Make your advertising cost-effective
- Apply ways to strengthen the conversion rate
- Start emphasizing the SEO and social media platforms
Cart abandonment rate
The metrics deal with the percentage of customers who initially add the product to the cart but eventually decided to leave the deal. As per the study performed by the Baymard Institute, almost 70 percent of store visitors skip the final phase of their shopping journey.
If your store dealing with an identical situation, try the following tactics to keep things afloat:
Simplify the buying route or process in your store. Prefer keeping things as simple as possible.
Leverage remarketing techniques to convince unwilling store visitors back to the site. This can include follow-up emails and personalized ads.
It doesn’t make sense to follow every piece of information or data coming your way. By leveraging these metrics you can control what matters and ensure success for your store in the future.
Also Read: How Does E-Commerce SEO Grow Your Business?