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Five Metrics Every E-Commerce Retailer Should Track
Analytics can be the make or break of any retailer. From a site’s bounce rate to an abandoned shopping cart, there are plenty of stats and metrics that a company should turn to for business growth.
Depending on the industry, from fashion to office supplies, tracking specific metrics can help increase the overall growth of a company. If you’re new to the analytics game, or you’re trying to impress the Head of Analytics, these metrics are essential for every e-commerce professional. Of course, if you’re a novice to the world of GA or any other analytics programs, here are the five metrics you should track to help experience an uplift in sales.
Sales Conversion Rates
While website traffic is fantastic, and you’re experiencing an uplift in site visits every month, it really means nothing if you’re not selling anything. Measuring your sales conversion rate is one of the most important aspects of running an online business. With an uplift in sales conversions, you can then reflect the level of site views. The equation to use: Number of sales / Total number of users.
Much like conversion rates, if your site is receiving an uplift in sales, but you’re not increasing email or SMS opt-ins, your customers may not be seeing the best deals on offer. This is an untapped market that you should definitely take advantage of. Even if they don’t buy your stuff, tracking the growth of your email database is an easy way to keep your brand fresh. The equation to use: Set up a conversion goal in Google Analytics to track your opt-in’s “thank you” page.
Email Conversion Value
Coming off the cuff from the email opt-ins, retailers must look deeper than the open rate of an email and investigate the effectiveness of those it sends out. Emails can increase revenue by 143 per cent, so why wouldn’t you take advantage of it? When you track the conversion value, it’s easy to see what is and isn’t working, and how to find overall improvements and optimise the newsletters getting sent out. The equation to use: Number of sales from emails/number of total emails delivered.
Cart Abandonment Rate
According to the Power Retail Shopper Profile Report on Fast Fashion shoppers, 48 per cent of shoppers abandon their cart ‘sometimes’, with 28 per cent of them doing so ‘frequently’. Although no one is innocent of this action, it’s a significant aspect of retail that needs to be addressed by e-commerce professionals. In certain industries, shopping cart abandonment rates hit as high as 82 per cent – whether it’s technical issues, increased pricing or poor customer experience, this is an essential tool to unlock for revenue growth. The equation to use: Number of completed purchases / Number of shopping carts created.
Net Promoter Score
With the rise in customer experience and the change in customer shopping habits, the Net Promoter Score (NPS) is one of the essential parts of an e-commerce site. The NPS asks two questions:
– How likely are you to recommend us to a friend? (Scale of one to ten.)
– Can you tell us why you responded with that number?
Once you have received a few responses, you can reach out to the detractors, passives and promoters and ask them to explain their votes further. From there, you can determine what your brand can improve and how to make your brand the best it can be. The ways to track your company’s NPS: Customer.guru, SatisMeter, Nicereply, Wootric, or Promoter.io.
Reaching out to your audience via email and SMS marketing, optimising your NPS score and targeting abandoned cart rates are a few small steps you can take to maximise your e-commerce site’s growth without too much effort. Depending on your industry, after checking these metrics out, be sure to keep an eye out for your site’s bounce rate, retention and the audience that you’re capturing. Although they’re small in the grand scheme of things, it’s the smallest moves that can make the biggest impact.
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