Once you settle on an ecommerce strategy, define what success looks like for your business. By deciding on key performance indicators (KPIs) and determining which metrics to track over time, you’ll know which areas of your business are performing well and which need improvement. Here are a few important metrics to consider:
Conversion rate: This is the percentage of website visitors who complete a desired action, such as making a purchase. A high conversion rate means your ecommerce strategy is effectively driving sales and engaging customers.
Bounce rate: Bounce rate tells you the percentage of visitors who leave your website after viewing only one page. A high bounce rate could indicate that visitors are not finding what they’re looking for or that certain aspects of your website experience need improvement.
Customer acquisition cost (CAC): CAC measures the cost of acquiring a new customer. Tracking CAC helps you assess the performance of your marketing and advertising efforts. To be profitable, your CAC should be lower than your average customer lifetime value (CLV).
Cart abandonment rate: This metric calculates the percentage of america phone number list customers who add items to their shopping cart but don’t complete their purchase. A high cart abandonment rate could signal issues with the checkout process, pricing, or general customer experience.
Website traffic: Monitoring the number of overall visitors, unique visitors, and page views helps you understand the effectiveness of your marketing efforts and the popularity of your products or services. It can also help guide your ecommerce SEO efforts, as traffic will increase when your brand appears more frequently in search engine results.
CLV: This metric helps you quantify the total value a customer brings to your business over the entire course of your relationship. By tracking CLV, you can assess the long-term profitability of your customer base and make informed decisions about customer acquisition and retention strategies.