E-commerce has become an essential component of every industry. Tracking e-commerce metrics can help a business to help identify areas for improvement. In this guide, we discuss the most important metrics for e-commerce and why businesses should use them to optimize their online strategies to increase revenue.
Why Tracking e-Commerce Metrics is Important?
E-commerce businesses are booming like never before, but the competition is fierce. With the rise of online shopping, your business needs to track specific e-commerce metrics to your performance and keep up with competitors.
By tracking the key performance indicators (KPIs) for e-commerce, you can gain insight into your customers, sales, and the overall performance of your online sales.
With this data, you can make more informed decisions about your e-commerce strategies. However, there are a significant number of metrics you could be tracking, and depending on your business, some are more useful than others. So, if you’re looking to take your e-commerce business to the next level, you need to know which metrics will have the most impact on your business.
Top e-Commerce Metrics You Should Track to Achieve Your Goals
Here is a list of the most important e-commerce metrics that your business should be tracking:
Customer Lifetime Value (CLV)
Customer Lifetime Value (CLV) is the estimated amount of revenue that a customer will generate for a business over their lifetime. These values are key e-commerce metrics that can help you understand how much revenue you can expect from a single customer. By focusing on customer lifetime value e-commerce metrics, you can improve customer loyalty, boost sales, and increase profitability for your business.
Average Order Value (AOV)
In contrast to the lifetime value importance, the Average Order Value (AOV) is the average amount that a customer spends on each order. A higher AOV means that customers are spending more per purchase, which can lead to increased revenue and profit margins for your business. By tracking AOV, you can also identify trends in customer behavior and adjust your marketing strategies to encourage higher spending. For example, offering free shipping on orders over a certain amount can incentivize customers to add more items to their cart and increase their AOV.
Your Customer Retention Rate (CRR)
Customer Retention Rate (CRR) is one of the top e-commerce metrics as it measures the percentage of customers who return to your online store to make another purchase. Repeat customers are more likely to make larger purchases and boost the performance and reputation of your brand. Therefore, by focusing on improving your CRR, your business can increase its customer loyalty, resulting in long-term success and profitability.
Customer Acquisition Costs (CAC)
Customer Acquisition Cost (CAC) is the amount of money that a business spends on marketing and sales efforts per a single customer. By tracking your CAC, you can identify the most effective marketing channels to use to target a specific customer and reduce your marketing costs.
Net Promoter Score (NPS)
Net Promoter Score (NPS) is a measure of customer loyalty and satisfaction. It can be measured by asking customers to rate their likelihood of recommending your business to a friend or colleague. NPS provides valuable insight into a customer’s satisfaction level, which can be used to identify areas for improvement.
Shopping Cart Abandonment Rate
The Shopping Cart Abandonment Rate measures the percentage of customers who add items to their shopping cart but do not complete the checkout process. By tracking this metric, you can identify issues in the checkout process of your e-commerce platform or make improvements to reduce cart abandonment.
Bounce Rate
Bounce Rate measures the percentage of visitors who leave a website after visiting just one page. A high bounce rate can indicate that your website is not engaging or targeting the right audience. You can improve your website’s performance by finding out the reasons that contribute to the high bounce rate.
Product Impressions
E-Commerce performance metrics measure the visibility and engagement of products on a website and social media channels. By tracking these metrics, you can identify which products are resonating with your target audience and which aren’t, helping to improve your strategies and drive more sales going forward.
Conversion Rate (CR)
Conversion Rate (CR) measures the percentage of visitors to a site who take a specific action, such as making a purchase or signing up for a newsletter. Similar to product impressions, tracking CR can help you identify areas of your e-commerce site that are performing well and areas that may need improvement.
Top Products by Units Sold
Tracking top-selling products by units sold can help you identify which products are most popular with customers. Your business can improve its sales and profitability by focusing on best-selling products.
Month-End Inventory Snapshot
A monthly inventory snapshot can help you track inventory levels and make informed decisions about your stock. It is important to monitor inventory levels to avoid stockouts and reduce overstocking.
Finding Top-Tier CRM Solutions
To track these e-commerce metrics effectively, it’s important to have a reliable and user-friendly CRM system. A good CRM system can help you collect, analyze, and report on your e-commerce metrics, providing you with valuable insights into your business performance.
Terracor Business Solutions helps businesses find the right CRM solution to collect, analyze, and report on e-commerce metrics effectively and efficiently, giving them the edge they need to succeed in today’s competitive e-commerce landscape.
To find out more about the solutions available to improve your e-Commerce platform, contact Terracor Business Solutions today!
