We do believe that as the owner of an eCommerce site you are in a constant war of tug with your metrics. Sometimes you feel it wonderful and sometimes it sounds like a foe. It’s not only you as most of the eCommerce owners like you go through this phase several times during their life as an entrepreneur.
There are some handful of metrics very specific in nature which are must to focus if you want to make more sales with higher revenues. Traffic to your eCommerce site and sales are two major things to concentrate on. You can consult with an eCommerce marketing agency for more information on metrics. So here we present the top 5 metrics to analyze for improved sales and traffic for your eCommerce site.
- Total Sales or Total Revenue:Total sales, is presented as an amount, which is considered being one of the major and overall barometers which represent how good the online store is performing. It’s perfect to measure the overall performance and momentum of the business. To get this figure one needs to include marketing, on-site optimization, traffic generation, product development, and many other aspects. As long the figure is showing an increasing trend then you are in the right way.
- Conversion Rate: Conversion rate is one of the key metrics of eCommerce sites to measure performance for the retailers. And vast amounts of time and effort are spent on conversion rate optimization campaigns. The conversion rate will be calculated as the % of visitors who purchased with your store. Total site sessions that made transactions will be counted and will be divided by the total number of sessions within a given time frame.
- Average Order Value: Average order value can be defined as the average value for a single purchase which is made with your store. It is calculated by dividing total accumulated revenue within a given timeframe by total orders which happened during the same period.
- Frequency of Purchase: Purchase frequency will be the number of purchases made by an average customer making across a given timeframe, in general, a year. How this is calculated? It will be calculated by dividing the accumulated number of orders placed with your store in the last 365 days by the total number of individual customers over the mentioned period.
- Retention period: The retention period can be defined as the duration for which an average customer will remain active. Customers will be marked as inactive if they are not purchasing for a period over and above six or twelve months. The customer retention rate states how many customers you managed to retain on average in a given period.
The above five are the most important metrics for analyzing and to improve traffic as well as sales of an eCommerce site. Apart from the above 5, there are various other metrics to be considered and the major among them includes Customer Lifetime Value, Cart Abandonment Rate, Return on Advertising Spend, Checkout Abandonment Rate, and Cost per Acquisition. We hope that now you can easily measure the performance and success of your eCommerce site.
There are many eCommerce marketing agencies which are offering excellent services to its clients. If you are finding that your ecommerce store is not performing as desired by you even after making enough effort then it indicates that you need expert’s assistance. Nothing is impossible and the experts will guide you in improving the traffic as well as sales figure of your ecommerce store. Connect with one of the best agencies of the industry for assistance.