With the number of online stores growing every day, it is tough for some brands to stand out. The top successful eCommerce brands out there are successful because they figure out their store and market analytics and understand the market’s needs. Metrics is what everyone wants and needs, whether you are an NFL scout or digital marketer. Metrics help you make decisions and observe performances. Unfortunately, most people miss opportunities that can help them increase sales on Shopify because they are not using vital metrics for eCommerce analytics.
Metrics assists you to say more about your product performances and customers’ reviews about it. The size of your team members can manage the activities that comprise your metrics. You can follow these six eCommerce metrics guidelines below and determine your metrics. For a startup eCommerce company, the average order value is a determiner for ongoing progress. By this value, we can easily analyze how the business is going. How long the business will be longer and what’s the policy future of this business.
1. Standard metrics checking
Some people might be wondering or even don’t know how to check eCommerce metrics. However, the different KPIs you might use can be checked weekly, bi-weekly or monthly. Check your metrics weekly to ensure that the state of the business is healthy. Bi-weekly metrics are enabled for larger samples, except they are influenced by any variations that may occur that week. Bi-weekly includes average order value (AOV), cost per acquisition (CPA), and shopping cart abandonment. Monthly metrics take a longer data window because of traffic patterns or likely your marketing patterns. Monthly metrics include multichannel engagement, open email rate, and other conversions.
2. Product discovery metrics
People can’t know your brand if you don’t create awareness that will lead to the discovery of the brand. Metrics will assist you in measuring your activities and generate discovery and understanding of your product. Impression depends on the number of times your content is presented to someone. Images will appear on the content you are sharing on Instagram, Facebook, or other social media platforms.
Engagement is the intersection of your impression and your reach. Engagement assists in promoting your product and brand, considering your followers and subscribers are engaging in your content. It may include acquisition activities like click-through, but it may also include non-acquisition-related activities such as likes, shares, and comments.
3. Loyal customer rate
Loyal customer rate is simply an eCommerce metric that refers to the number of customers who make multiple purchases from your store over a particular period. The metric feedback tells how well you have convinced and motivated your customers to buy more of your product. Shopify store’s analytics is an opportunity to grow your sales. Loyal customer rate= number of multiple customers/ total customers.
4. Average order value (AOV)
Average order value (AOV) is the price your customer spends per order and is directly impacted by the product you are selling on your website. You can be measured over time, and you can determine how it evolves. The calculation is dividing your total revenue by the total number of orders. There are several ways of increasing AOV. For instance, you can offer upsells, complementary products that are compelling to purchase, or nudge customers to get free shipping.
5. Conversion rate (CVR)
Conversion rate is a primary lever you can impact through advertising and marketing. The rate is best defined as the percentage of customers you can maintain over a particular period. The high number of people who visit your website shows that you are doing better in your customers’ service, impacting your marketing efforts and promotion. It is important to remember to subtract your new customers from the old customer when calculating. The new customers are essential, but your metric focuses on how well you maintain with your existing customers.
Conversion rate= the number of conversions/ total number of people who visit your site and multiply by 100.
6. Sales
Metric is straightforward as you can pull your daily gross sales from Shopify daily. Your focus should be monitoring your sales to ensure daily, weekly, and monthly sales are on track to achieve your goals. If you do some research and you observe sales are down on a high-performing day; for instance, you notice you are out of a top-selling product. You have a red flag and need to fix the situation as soon as possible instead of letting it linger for days.
Knowledge about the eCommerce metrics listed above can help you improve and identify how well you perform your activities. You can also use strategies to prove your store’s performance and discover problems to know what levers you have in control. Operating a successful eCommerce business requires your attention in a series of ways. First, you build your store and define your brand to create your product to offer high-quality customer service. Then, when everything is going according to plan, you can hit your sales target for the year.
