Ecommerce Metrics: Finding the Value in Metrics
Understanding metrics and data points for your eCommerce website can help businesses better plan for how they can focus their strategy for better efficiency. The most successful eCommerce websites are ones that are obsessed with metics. Focusing on these metrics can help place context of how your customers are engaging with your website. Understanding how to analyze these data points can help give greater consideration to how to improve customer retention and purchasing frequency.
Conversion Rate
The revenue of course is the most important thing concerning your commerce website. Keeping an eye on the number of visitors that are translating into buyers is the conversion rate for your website. Conversion rates for commerce websites are typically very low so making different marketing attempts with personalized customers experiences can improve and boost your rates. Evaluating the different conversion rates for individual marketing campaigns, promotions, and advertising resources can effect how effective your sales can be.
Average Acquisition Cost
This is the average cost of what it costs the company to acquire a new customer. This metric became useful when Internet companies starting use pay-for-click and advertising campaigns to try and gain new clientele. The customer acquisition cost is important to two different facets of an Internet Company. The investors and also the company owners use this measure to understand the scalability and profitability of a eCommerce website. This metric looks at the current relationship between gaining a customer and how that money is spent acquiring a customer.
Cart Abandonment Rate
Although shoppers rarely abandon their shopping carts in brick and mortar stores, they are quick to abandon their shopping carts while shopping for merchandise. There can be a variety of reasons why there are high cart abandonment rates: complicated checkout, hidden pricing during checkout, lengthy registrations, and limited payment options. The measurement shows the ratio of the number of people who abandoned their items that were already put into their shopping carts to the number of completed transitions. Targeting customers online with abandonment
Refund and Return Rate
The refund and return are two important measurements that will explain how customers are interacting with the product that is being sold on an eCommerce website. The fashion industry has the highest amount of returns and are likely being returned because the product: doesn’t fit well, has poor construction and quality, and or unlike they expected.
Mobile Conversion Rates
Understanding how your conversion rates for your mobile website v. your desktop conversion rates can explain how effective your mobile site is. Closing the gap between how your desktop conversions preform and your mobile conversion preform are important for customer retention. Customers are more likely to move on if the website has a slow load rate. Partnering with a eCommerce platform that addresses issues for good mobile conversion rates can help can important sales. The spread of the mobile phone opens the opportunity for retailers to gain important mobile revenue.
