Shopping online is the way of the future for consumers worldwide, and more than 230 million people in the United States shop online consistently. Starting an eCommerce business is a shrewd move to capitalize on the online shopping movement before it’s too late. Selling quality products online is a sure way to help your business flourish, but you shouldn’t take eCommerce metrics for granted.
The best marketing metrics offer the data you need to make wise decisions for your business’s future. They’re essential to measure your eCommerce performance metrics and modify your marketing strategy for further growth.
Luckily, you’ve discovered this enlightening guide to learn about the biggest KPIs and metrics to track when starting an eCommerce company. Continue reading to upgrade your marketing and sales numbers today!
Sales Conversion Rate
Your sales conversion rate is the number of sales you make divided by the number of people visiting your eCommerce store. If 2,000 people visit your store and only 20 purchase products, your sales conversion rate is 1 percent. The higher your conversion rate, the better your eCommerce store operates.
Improve your conversion rate by using quality photos of your products. Product descriptions are another area of emphasis for your eCommerce metrics. Use keywords in the descriptions to increase your sales.
Web Traffic
Your web traffic will tell you much about your eCommerce brand’s performance. The goal is to attract organic web traffic, but monitoring your progress is only possible by measuring your marketing metrics. Growing your web traffic will result in higher sales numbers and increasing revenue.
You can use this link to find what’s working for your marketing strategy. Promote your products on social media to generate more traffic. SEO is another excellent way to boost your organic traffic.
Average Order Value
Generating sales is great, but tracking the average value of each order is vital for your long-term success. The goal is to convince consumers to spend as much as possible at your store. The average order value refers to the average amount from each purchase.
Divide the total of your sales by the number of carts. The resulting figure will show you how much you generate from each sale. Offering product packages and upselling opportunities is a proven way to boost your average order value.
Customer Acquisition Cost
Your customer acquisition cost is the money you spend on marketing to gain a new customer. Spending $50 to gain a new customer who spends $40 on your products means your eCommerce store is losing money. You can focus on your conversion rate to turn a profit.
Measure Success With These eCommerce Metrics
Running an eCommerce business is an excellent way to make a living, with more consumers shopping online than ever. Monitoring customer acquisition costs and web traffic is vital when selling products online. Your sales conversion rate will also tell you much about your eCommerce brand’s performance and the areas where you can improve your marketing strategy.
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