10 Critical Ecommerce Metrics You Must Track To Be Profitable
It's essential to track your performance when running an online store to evaluate how well your company is doing. Ecommerce metrics can be used to determine things like how much is usually ordered at a time, how frequently people are making purchases from your website, or even how much it costs to attract a new customer.
So, what metrics are must-haves to track if you are an e-commerce owner?
Here is a curated list:
So, what metrics are must-haves to track if you are an e-commerce owner?
Here is a curated list:
Average Order Value (AOV).
AOV is a representation of the typical amount of money your customers spend on a single order on the website. It can help to set goals (amount of orders and gained revenue ) for a future period.
Customer Lifetime Value (CLV).
This metric looks at customers in terms of how much revenue they will generate for the company over the lifetime (relationship with your business).
Knowing how much a customer is worth to your business enables you to determine how much you can spend on customer acquisition while also still making a profit.
Conversion Rate (CR).
The number of people who made a purchase out of the total number of people who visited your website is your conversion rate (CVR). Knowing the entire scope of your sales funnel can help you identify problems connected to the checkout process. If you're facing major drops, it could be due to a complicated checkout process or a technical problem. We recommend considering a conversion optimization program.
Customer acquisition costs (CAC).
This metric indicates how much it costs to attract a new customer. It is closely intertwined with CLV and greatly impacts your marketing strategy. Make sure CAC doesn't exceed your CLV and doesn't increase dramatically.
Shopping cart abandonment rate.
See that many customers have added the product to their shopping cart but then haven't completed the purchase? Racking your brains why? Some of the reasons are unexpected high fees/ shipping costs, no guest checkout option, long and complex checkout procedure, concerns regarding payment security, etc. This metric helps to identify problems related to the checkout process and improve user experience.
Bounce Rate
Shows the percentage of visitors to your website who closed the sites —or "bounce"—after viewing only 1 page (typically the home page). Bounce rate indicates technical problems and interrupted CJM.
Returning customer rate
The number of customers who have purchased more than once from your store. This is a gold mine for marketers because returning a client will cost much cheaper than attracting a new one. If RCR is low, consider expanding your customer base, retargeting, and improving user experience in general.
Click-through rate (CTR)
Your click-through rate (CTR) is the percentage of people who visit your website after clicking on an email campaign, ad, or social media post. Overall, click-through rates are likely to be quite low. You're doing quite well if you have a CTR of 2% or higher.
Store sessions by traffic source
Your online store sessions by traffic source report display the number of visitors to your website and how they got there (direct, social, search, etc.). Focusing on this metric, a decision is made about changes in the marketing strategy-the budget for which traffic channel is better to increase since it brings the most leads.
Top products by units sold
This metric informs you which of your products are the most popular in terms of orders and helps you to prepare seasonal campaigns in advance.
AOV is a representation of the typical amount of money your customers spend on a single order on the website. It can help to set goals (amount of orders and gained revenue ) for a future period.
Customer Lifetime Value (CLV).
This metric looks at customers in terms of how much revenue they will generate for the company over the lifetime (relationship with your business).
Knowing how much a customer is worth to your business enables you to determine how much you can spend on customer acquisition while also still making a profit.
Conversion Rate (CR).
The number of people who made a purchase out of the total number of people who visited your website is your conversion rate (CVR). Knowing the entire scope of your sales funnel can help you identify problems connected to the checkout process. If you're facing major drops, it could be due to a complicated checkout process or a technical problem. We recommend considering a conversion optimization program.
Customer acquisition costs (CAC).
This metric indicates how much it costs to attract a new customer. It is closely intertwined with CLV and greatly impacts your marketing strategy. Make sure CAC doesn't exceed your CLV and doesn't increase dramatically.
Shopping cart abandonment rate.
See that many customers have added the product to their shopping cart but then haven't completed the purchase? Racking your brains why? Some of the reasons are unexpected high fees/ shipping costs, no guest checkout option, long and complex checkout procedure, concerns regarding payment security, etc. This metric helps to identify problems related to the checkout process and improve user experience.
Bounce Rate
Shows the percentage of visitors to your website who closed the sites —or "bounce"—after viewing only 1 page (typically the home page). Bounce rate indicates technical problems and interrupted CJM.
Returning customer rate
The number of customers who have purchased more than once from your store. This is a gold mine for marketers because returning a client will cost much cheaper than attracting a new one. If RCR is low, consider expanding your customer base, retargeting, and improving user experience in general.
Click-through rate (CTR)
Your click-through rate (CTR) is the percentage of people who visit your website after clicking on an email campaign, ad, or social media post. Overall, click-through rates are likely to be quite low. You're doing quite well if you have a CTR of 2% or higher.
Store sessions by traffic source
Your online store sessions by traffic source report display the number of visitors to your website and how they got there (direct, social, search, etc.). Focusing on this metric, a decision is made about changes in the marketing strategy-the budget for which traffic channel is better to increase since it brings the most leads.
Top products by units sold
This metric informs you which of your products are the most popular in terms of orders and helps you to prepare seasonal campaigns in advance.
