If your business is selling products or services online, you need to track a few key metrics. Tracking the right metrics will help you identify your most profitable products and customer segments, understand how customers are engaging with your website, and optimize marketing spend for maximum ROI. Here are four of the most important metrics for eCommerce businesses to track.
Four eCommerce metrics you should track
It might be difficult to plan your eCommerce store, complete various business operations, make sure everything is going according to the plan, and keep track of metrics at the same time. However, monitoring your eCommerce performance is necessary to understand what works well and what does not. Below are four main metrics you should review and optimize on a regular basis.
The conversion rate is an important metric you should track when it comes to evaluating success in eCommerce. It measures the number of visitors who complete a desired action on your site (e.g., making a purchase). You can track overall conversion rates, as well as specific conversion rates such as product page conversion rate or cart abandonment rate. Knowing your conversion rate can help you make data-driven decisions about where to focus resources such as optimizing product pages or improving user experience on checkout pages. You can also provide valuable content to improve conversion rates. Content can take different forms. Since video is quite popular, you can use Y2Mate tool to download YouTube videos in any format you want and use them in your content marketing strategy. Whether you use blog content or “this is a business meme” on your website, make sure it is relevant to your audience.
Average Order Value (AOV)
Your Average Order Value (AOV) is an essential metric that enables you to understand how much each customer spends on average when they buy from your store. AOV helps you determine the right price points for specific products and customer segments and make sure that any discounts or promotions are having a positive effect on sales. To calculate AOV, divide total revenue by total number of orders over a given period of time.
Return On Ad Spend (ROAS)
When it comes to digital marketing campaigns, tracking ROAS is crucial for evaluating their effectiveness—and this applies just as much if not more so to eCommerce businesses than other types of companies. ROAS measures the return on investment compared to the cost of advertising—in other words, it tells you how much money you made in relation to how much you spent on ads over a certain period of time. Knowing this information allows you to allocate ad budgets more effectively and ensure that each dollar spent is generating an appropriate return on investment.
Customer Lifetime Value (CLV)
Knowing your Customer Lifetime Value (CLV) helps you understand how much money each customer brings into your business over their lifetime with you—not just through their initial purchase but all subsequent purchases as well. Having this information allows you to determine which customers bring in the most value and prioritize them accordingly with targeted offers and incentives designed to keep them coming back for more. Calculating CLV requires data from multiple sources such as CRM software and web analytics tools; use these sources in combination with customer surveys or interviews for an even more comprehensive understanding of CLV trends within your business’s customer base over time.
Tracking the right metrics can provide invaluable insights into what works best for your eCommerce business—and what areas could use improvement. Conversion rates, average order value, return on ad spend, and customer lifetime value are all essential metrics every online store should be tracking regularly in order to get an accurate picture of performance and identify opportunities for growth moving forward. By taking advantage of data-driven approaches like these, it’s possible to maximize efficiency while minimizing wasted effort in order to get the best results out of every effort made towards achieving success in eCommerce!