Ecommerce Metrics to Track Right Now
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Technologies similar to Cookies
Similar technologies are technics or tools, using certain characteristics to identify devices so that visits to a website can be analyzed. It includes, for example, HTML5 local storage, local Shared objects, fingerprinting techniques, tracking pixels and plugins.
For ease of reference, cookies and similar technologies are referred as "Cookies".
Usage of Cookies
Cookies enable us to provide users with certain features and supply us with information about website visits.
We also make use of cookies to make our site more user-friendly, to better understand our existing and prospective customers, including associating a user with different devices and browsers that they may use for online targeting and advertising purposes.
How can a website owner understand and track visitor behaviour? How can problems with an online shop be identified in advance? Why change the design of the site or specific pages? Why does a customer fill the shopping basket but not place an order? The answers will lead to successful solutions and online business profits.
«usiness e-commerce is real-time movement and constant monitoring. And analysing: the market, competitors, customers and your own state. Analytics systems collect information about the performance of a website or online shop, but this is not enough for a qualitative analysis of sales. To identify problems and understand whether everything is in order in your business, you need to track eCommerce indicators. Let's talk about what eCommerce metrics numbers mean in the sales cycle.
1. Average Order Value (AOV)
Average order value = total sales/number of orders
The average order value is the average amount that customers spend on a website or online shop when paying for an order. This is a very important metric in ecommerce. If you know it, you can adjust your actions in real time, raise or lower prices, think about urgent promotions, calculate special offers. By analysing such three metrics as: site traffic, its conversion and the size of the average check, you can make predictions about the profit of an online shop. Read how to increase the average cheque on the Fincraft Capital website.
2. Conversion Rate
Conversion rate = (number of conversions/total number of visitors) x 100
Conversion rate shows what percentage of website visitors made it to the point of purchase. Test the metric by changing: prices, offers, product, promotions, interface and more. This is the only way to find out exactly what your audience likes and responds to best.
3. Bounce Rate
Bounce rate = (total number of visitors who left without interacting / total number of visitors) x 100
The bounce rate is the percentage of visitors who left the site after viewing only one page. It is an important indicator of performance and search engine ranking. A high bounce rate may indicate that users are not finding what they are looking for on the site.
A bounce rate of 25% or less for well optimised and interesting sites, 30-50% is a normal bounce rate, but the site needs further work.
«usiness e-commerce is real-time movement and constant monitoring. And analysing: the market, competitors, customers and your own state. Analytics systems collect information about the performance of a website or online shop, but this is not enough for a qualitative analysis of sales. To identify problems and understand whether everything is in order in your business, you need to track eCommerce indicators. Let's talk about what eCommerce metrics numbers mean in the sales cycle.
1. Average Order Value (AOV)
Average order value = total sales/number of orders
The average order value is the average amount that customers spend on a website or online shop when paying for an order. This is a very important metric in ecommerce. If you know it, you can adjust your actions in real time, raise or lower prices, think about urgent promotions, calculate special offers. By analysing such three metrics as: site traffic, its conversion and the size of the average check, you can make predictions about the profit of an online shop. Read how to increase the average cheque on the Fincraft Capital website.
2. Conversion Rate
Conversion rate = (number of conversions/total number of visitors) x 100
Conversion rate shows what percentage of website visitors made it to the point of purchase. Test the metric by changing: prices, offers, product, promotions, interface and more. This is the only way to find out exactly what your audience likes and responds to best.
3. Bounce Rate
Bounce rate = (total number of visitors who left without interacting / total number of visitors) x 100
The bounce rate is the percentage of visitors who left the site after viewing only one page. It is an important indicator of performance and search engine ranking. A high bounce rate may indicate that users are not finding what they are looking for on the site.
A bounce rate of 25% or less for well optimised and interesting sites, 30-50% is a normal bounce rate, but the site needs further work.
4. Abandoned Basket Rate
Shopping basket abandonment rate = (completed purchases/created shopping baskets) x 100
This is a serious metric that shows the percentage of incomplete orders: a customer has added an item to their basket but left the site without placing an order.
A high percentage of abandoned baskets is a sign that you need to take urgent action to improve the performance of your shop or website. This could be due to long loading pages, lack of guest orders (without registration). Users may be frustrated by the length of the registration process, the number of questions they have to answer, the poor user interface or the lack of trust in your service.
The average percentage of abandoned shopping baskets in e-commerce is between 70% and 80%, according to various sources. When analysing this, you need to consider the business theme and market segment. For example, this figure is much higher in the consumer electronics category than in the clothing and footwear segment.
5. Cost per acquisition
CPA = Cost per advertising campaign/conversion
Cost per acquisition, also known as price per conversion, is a metric that reflects the cost of acquiring new customers through a particular marketing campaign or strategy. To calculate the price per acquisition, you need to divide the marketing costs of a particular company by the number of customers attracted by the same campaign. CPA allows you to identify the most cost-effective advertising channels and the profitability of the business as a whole.
6. Customer lifetime value
Customer Lifetime Value = Average Purchase Value x Average Purchase Frequency
Customer lifetime value is a metric that shows how much revenue a company earns on average from a single customer from the time they place their first order to the present.
It is one of the most important key performance indicators for an ecommerce site: the cost of acquiring repeat or loyal customers is always lower, and the average order value is usually higher. This means that repeat customers are the most profitable customer segment.
7. Site loading speed
This is one of the most important SEO factors that determines a website's ranking in search results. The faster a website loads on different devices (preferably mobile), the better the experience for your customers. You need to ensure that the site loads quickly across all browsers, operating systems and target countries.
Shopping basket abandonment rate = (completed purchases/created shopping baskets) x 100
This is a serious metric that shows the percentage of incomplete orders: a customer has added an item to their basket but left the site without placing an order.
A high percentage of abandoned baskets is a sign that you need to take urgent action to improve the performance of your shop or website. This could be due to long loading pages, lack of guest orders (without registration). Users may be frustrated by the length of the registration process, the number of questions they have to answer, the poor user interface or the lack of trust in your service.
The average percentage of abandoned shopping baskets in e-commerce is between 70% and 80%, according to various sources. When analysing this, you need to consider the business theme and market segment. For example, this figure is much higher in the consumer electronics category than in the clothing and footwear segment.
5. Cost per acquisition
CPA = Cost per advertising campaign/conversion
Cost per acquisition, also known as price per conversion, is a metric that reflects the cost of acquiring new customers through a particular marketing campaign or strategy. To calculate the price per acquisition, you need to divide the marketing costs of a particular company by the number of customers attracted by the same campaign. CPA allows you to identify the most cost-effective advertising channels and the profitability of the business as a whole.
6. Customer lifetime value
Customer Lifetime Value = Average Purchase Value x Average Purchase Frequency
Customer lifetime value is a metric that shows how much revenue a company earns on average from a single customer from the time they place their first order to the present.
It is one of the most important key performance indicators for an ecommerce site: the cost of acquiring repeat or loyal customers is always lower, and the average order value is usually higher. This means that repeat customers are the most profitable customer segment.
7. Site loading speed
This is one of the most important SEO factors that determines a website's ranking in search results. The faster a website loads on different devices (preferably mobile), the better the experience for your customers. You need to ensure that the site loads quickly across all browsers, operating systems and target countries.
Fincraft Capital's recommendations
Track and review the key metrics of your e-commerce site. Continuously analyse your online shop traffic data (using Google Analytics or any other monitoring system you use).
Analyse traffic channels: organic (browsers that "come" to the site based on Google /Yahoo /Bing search results), direct (customer enters the URL in the browser or the site has been saved in bookmarks), advertising Google/ Facebook/ Instagram. Studying the different traffic sources (especially those that bring the most visitors and have the highest conversion rate) helps to better allocate resources.
Track and review the key metrics of your e-commerce site. Continuously analyse your online shop traffic data (using Google Analytics or any other monitoring system you use).
Analyse traffic channels: organic (browsers that "come" to the site based on Google /Yahoo /Bing search results), direct (customer enters the URL in the browser or the site has been saved in bookmarks), advertising Google/ Facebook/ Instagram. Studying the different traffic sources (especially those that bring the most visitors and have the highest conversion rate) helps to better allocate resources.