There are dozens of metrics to track the performance of your E-Commerce store. Sometimes you fail to keep the track of the numbers and how to figures in the picture of your business success. Growing your store, the focus is needed in two areas:
The right KPI and measuring/ tracking the relative metrics.
Have a proper analytic system to measure all the metrics.
You need a vital e-commerce metrics in each stage of the sales funnel of your business and customer lifecycle.
Discovery, Consideration,? Revenue, Retention, and Advocacy are different stages of e-commerce sales funnel.
If you’re a seasoned E-Commerce veteran, there are five metrics that can quickly help you to get a clear picture of where you are and where you are going to be.
Revenue being the bottom line, one has to keep an eye on the gross margin or the difference between revenue and cost of goods sold. This is important as you need to reinvest profits for growth in next year.
The key question is: How many people are aware of the product or brands?
So at the top of the funnel lies Product Discovery
Here comes Brand Name Search- where people search your brand using metrics like Google Adwords, Google Search Console & Google Keyword Planner.
The concept behind this is visitors converted into buyers. Conversion isn’t always limited to top line website traffic, thus evaluation from different sources must be done like advertising, e-mail campaigns and promotions to understand what is most effective in driving sales and plan accordingly.
The key impression metrics need to be activated for this. Facebook reach metric is different from impressions as it may include multiple views of your ads by the same people. For views, YouTube and other Video hosting platforms play a major role. In Adwords pay attention to Search Impression and Display Impression share.
Apart from this, an idea on a monthly basis on the number of times your website was served on Google Organic search result giving good KPI for overall reach is the work of Google Search Console.
Subscriber Growth Rate
The use of email marketing to spread news of special product exploring ways to expand your audience via multimedia, Pinterest or other targeted platforms. The count of monthly readers and email list and make a research for engagement of audience in other social media platforms is a must.
Value per Visit is the data point which helps you understand the value of each visitor. This helps in guiding decisions around advertising and in calculating returns on your marketing investments.
E-Commerce metrics at Consideration stage
Down in the funnel comes a point where the focus needs to be on convincing potential and existing customers to engage with your brand. Here comes the tracking and analyzing of metrics to inbound traffic to your store, email and social media engagement. On-site traffic is the key performance indicators which establish the easiest way of measurement to your website.
Email marketing metrics with growth rate, bounce rate, open rate, click-through rate and conversion rate are the top engagement KPIs that your email marketing team may adopt for business success.
Social Media Engagement metrics: like, share, comments and clicks per post are engagement KPIs on monthly basis.
E-Commerce metrics at conversion stage
Tracking sales and revenue is regularly is a standard procedure for any business. Tracking e-commerce businesses with more advanced KPIs at the behavioral level takes the system to the next sphere. Micro-conversions with Email collection and ordering samples are the pre-determined steps that occur before a sale. E-commerce team should keep an eye to track the relationship between micro to macro conversion ratio by testing and optimizing email communication improving the sample-to-order ratio.
Number of Transactions, Average Order value, Sales Data, Conversion rate, Number of visits, Customer Acquisition cost are some of the critical business metrics to measure the effectiveness of paid measures.
E-commerce metrics at Retention stage
The key loyalty metrics that you can use as primary KPIs to evaluate how to retain customers in business. Repeat purchase rates, purchase frequency, Order gap analysis measure customer retention starting from point to understanding and improving customer loyalty.
Along with this Average Customer lifetime value, followed by metrics like average order value, purchase frequency and time period guides your business.
How long customer will shop with us is the exact question that you should dig your mind with.
E-commerce metrics at the Advocacy stage
The reason existing customers will want to recommend your brand comes from the customer experience. A good customer experience is more of a lead to recommendations. Net promo score(NPS) measures how a customer recommends your brand. The target is to make average NPS across all customers to the optimum possible. Customer satisfaction gauge to be tracked and segmented monthly.
Summarizing all the above metrics together on a single spreadsheet is an effective means of running a data-driven e-commerce business. With these, you get all the insights into what’s working and clear vision on any opportunities for improvement.