Managing an eCommerce store is never an easy thing to do. You will have to focus on its success continuously. This is where you will need to pay your attention to a few important analytics. If you don’t have any understanding at all about those metrics, you may take a look at this list. We will share 5 of the most prominent analytics that you will need to be tracking on the eCommerce store. Based on them, you can receive lots of useful inputs, which can help you with transforming the online business to the next level.
Sales conversion rate
One of the most important analytics that you should be tracking in your eCommerce store is the sales conversion rate. This is obvious. That’s because the sales conversion rate will help you to understand the percentage of visitors who come to your online store and make a purchase. This is one of the biggest metrics that you will worry. Hence, it would help if you never ignored tracking it.
There are numerous tracking tools, which you will be able to use to understand the sales conversion rate. However, you will be able to locate the sales conversion rate of your eCommerce store manually. All you have to do is to take the total number of visitors who come to your online store and the total number of sales that you generate. By dividing the number of sales from the number of visitors, you can end up receiving the sales conversion rates.
Based on the sales conversion rate, you will be able to learn how to boost the customer experience that you deliver.
Customer lifetime value
You expect to get long term customers for the eCommerce store. This is where you should be mindful of customer lifetime value. This is the metric that indicates how much money you can earn out of an average customer of your eCommerce store throughout the lifetime. For example, a customer can make ten sales through your eCommerce store for his entire life. The value associated with each sale is $50. Then the total customer lifetime value would be $500. You should try your best to increase the total customer lifetime value as much as possible.
There are numerous calculation methods available for you to understand the overall customer lifetime value. If you don’t want to do that manually, you can take a look at the automated tools that can help you with understanding it. Once you get to know about customer lifetime value, you will try your best to develop long-lasting relationships with the customers. Then you can get the customers to purchase more from your eCommerce store throughout their life, which can boost your revenues.
Average order value
Last but not least, you will need to understand the average order value. This is the average value associated with every purchase. To understand the average order value, you should divide the overall amount of sales revenue that you have generated from the number of carts. This will help you to get a clear picture of the average order value.
It would be best if you then tried to increase the average order value as much as possible. This is where you can think about bundling the products that you have together. You can provide a discount on the bundle. It will help you to tempt the customers to go ahead with the purchase. Likewise, you can also think about upselling the products that are sold over the eCommerce store. Then you can increase the average order value with ease.
Customer acquisition cost
Upon the development of your eCommerce store, you will have to spend your money on marketing campaigns to acquire new customers. If you are spending too much money on marketing, you are not doing it right. This is where you should be mindful of the customer acquisition cost. Your customer acquisition cost should be as low as possible.
You can easily calculate the customer acquisition cost. This is where you should take the total amount of money you have spent on your customers and then divide that by the total number of unique customers you have. Then you can easily figure out how much money you will have to spend to get a new customer attracted to the eCommerce store.
Based on the value, you will need to think about reducing the overall customer acquisition cost. This is where you should improve the website for conversions. It would help if you thought about optimizing paid advertisements as well. Then you can reduce the total amount of money you spend while keeping the results the same.
Revenue by traffic source
Your eCommerce store has numerous traffic sources. In other words, customers come to your online store through multiple channels. This is where you should understand the revenue by traffic source that you are experiencing.
Traffic sources that you have to the eCommerce store are not equal. Some of the sources send more traffic on your way. However, you will notice that some of the traffic sources are not sending that much of traffic on your way. It would be best if you had a clear understanding of these different traffic sources. Then you can understand what sources you should be focusing on more.
You may also analyze why some of the traffic sources are not generating expected traffic. Then you can do appropriate optimizations and end up boosting your traffic. Make sure that you always invest your money on the traffic sources that can deliver positive results to you.
These are five of the most important analytics that you should be monitoring on the eCommerce store. If you are concerned about the success of your eCommerce store, you must pay special attention to these analytics. They can help you to understand how to take the eCommerce store to the next level with ease.