It’s easy to get lost in ecommerce metrics as an online retailer. If nothing else, the sheer number of potential metrics to track and measure can be overwhelming. But not all metrics are as valuable as others, and identifying the key performance indicators (KPIs) you need to track will help you improve your online store’s performance.
7 Key Ecommerce Metrics and KPIs To Track Weekly
What are e-commerce metrics?
E-commerce metrics, or key performance indicators (KPIs), are statistics that tell retailers how well their online store is performing. KPIs allow you to track operational efficiency at many levels, including:
22 e-commerce metrics to track
Here are 22 e-commerce metrics you can track to help you achieve your online business goals:
1. Conversion rate
One of the most important e-commerce metrics is your conversion rate, which tells you how many of your website visitors become your customers. This will give you a percentage that you can use to determine your next steps. You can boost your conversion rate by making changes to your website or offering promotions to your visitors.
2. Bounce rate
Your bounce rate is the relationship between the number of people who visit your site and the number of bounces that take place within the same time frame. A bounce occurs when someone visits your website and leaves without taking any further action on the page. This metric can tell you about the quality of your website, such as whether your visitors enjoy the experience your site offers. Consider evaluating several factors to reduce bounce rate, such as SEO approaches, relevant and quality content, appealing designs and user-friendly navigation features.
3. Customer retention rate
Your customer retention rate (CRR), or repeat customer rate, shows you how effectively your business generates repeat businesses and maintains customer loyalty over time. CRR is important because costs less for businesses to retain customers than it does to pay for marketing campaigns intended to find new customers. It can also show businesses which of their products or services are performing effectively and which they can improve.
4. Customer acquisition cost
Customer acquisition cost (CAC) measures approximately how much it costs you to acquire new customers in relation to how much you pay for website traffic and the number of customers you have. You can use this information to determine if youre targeting relevant audiences for your products. By maintaining an optimal customer acquisition cost, you can increase overall profitability.
5. Customer lifetime value
Customer lifetime value (CLV) involves both CRR and CAC as it calculates how much a customer spends and whether you profit from them on a continuous basis. CLV is important because it can help you control the amount you invest in gaining new customers and focus more on retaining long-term customers who add value to your business. You can also evaluate your CLV to develop strategize and implement marketing plans that target repeat customers and increase total CLV.
6. Customer survey results
Many online retailers ask their customers to take a survey after a sale to record their level of satisfaction with their purchasing experience. One of the most common customer survey metrics is the net promoter score (NPS), which determines whether your customers are likely to recommend your store to their friends and family. This e-commerce metric is a simple way to find out if people are happy with your brand and products.
7. Customer support rate
Customers reach out for support before purchasing for many reasons, and their feedback can help you improve and modify your online retail operations. Understanding customer support rates can also help you develop strategies to boost your customer retention rate, as customers who are happy with their experience are more likely to purchase from you again and recommend you to others.
8. Refund and return rate
Businesses track refunds and return rates and the reasons for the request to determine why customers cancel, return or exchange purchases. Because customers may not be able to try a product before buying it online, they may be more likely to return an item for a refund if the product doesnt work for them. Tracking this metric helps identify where to change or modify products, improve online support or develop new ways to support the customer experience. A low refund and return rate can also contribute to your customer retention rate.
9. Subscription rate
If you provide your product through a subscription service, monitoring your subscription rate is an easy way to see if your business has grown. If you notice that customers have unsubscribed, you can use the feedback they give in exit surveys or consider any recent changes you made to the product to affect subscription rates. This metric can also help analyze and improving current strategies to increase subscriptions.
10. Average order value
Your average order value (AOV) is the average value of customer purchases. AOV is important for developing pricing structures and marketing campaigns. You can use your AOV to create promotional offers, product packages or bundles and to recommend alternative products. The average order value can also help you understand which products customers are most likely to purchase together, giving you more ways to promote and cross-sell to increase revenue.
11. Product reviews
Giving customers the option to share their opinions with other potential buyers also provides you with helpful information. With product reviews, you can communicate with your customers and determine their satisfaction levels. Using information from product reviews, you can implement improvements or create new products to establish credibility and encourage higher product ratings.
12. Number of transactions
Many businesses also track the number of e-commerce transactions to understand how cash flow changes throughout different periods. Consider monitoring transaction activities regularly, such as every month, quarter or year. This metric can also help you gain more information about your companys target audience to develop better strategies for promoting products.
13. Highest-performing products
Another important e-commerce metric is the highest-performing product in your organizations inventory. For instance, identify the product that customers purchase the most, the product that appears to be the most popular or the product that sells quickly. Using data from transactions and customer reviews, you can find out which products are in the highest demand within your businesss customer market. Then, you can focus on the promotion of those products to increase sales.
14. Email click-through rate
Many email marketing tools allow online retailers to track the metrics of emails they send to their customers. One of the most useful email metrics for e-commerce business owners is the click-through rate, or the number of people who opened the email and clicked a link to your website. You can encourage a higher click-through rate by incorporating strong calls to action and design features that make the reader want to see more.
15. Cart abandonment rate
The shopping cart abandonment rate determines how many people added products to their online cart but did not make the purchase yet. This metric can help you improve the customer experience to make the checkout process simpler and more efficient. For instance, consider giving customers the option of guest checkouts, low shipping fees and easily navigable payment processes that include only one or two primary pages.
16. Website speed
Websites that load quickly contribute positively to a customers user experience. You can encourage your customers to stay on your website and make a purchase by checking your website speed regularly to ensure it optimizes properly. Many free online tools can test your website speed for you and give you tips on how to make improvements, such as optimizing your images for faster downloads.
17. Website traffic sources
The amount of traffic on your website is important because it contributes to your conversion rate. Where your traffic comes from matters, especially in terms of your marketing budget. Some of your traffic may happen organically, which means visitors find you using free search engine results. Others will access your website through advertisements, emails and other paid sources. If you know where your traffic comes from, you can decide on the best marketing strategies for your e-commerce business.
18. Return on advertising spend
Return on advertising spend (ROAS) is an e-commerce metric that shows the effectiveness of your advertising efforts. A high ROAS indicates that team members advertising efforts have positive effects on improving revenue. You can increase your ROAS by promoting higher-value products and only maintaining ad campaigns that perform well. Continuous measurement of the ROAS also gives marketing and advertising teams the information they need to plan strategies that reduce advertising costs.
19. Total revenue
Total revenue shows businesses overall profitability allows sales and marketing teams to plan for continued revenue growth. Tracking changes in your revenue can help you better analyze other e-commerce metrics, make decisions about your day-to-day business operations and make plans for your companys growth. You can also gain insight into how revenue changes due to external factors, such as inflation rates, market fluctuations and competitive pricing structures.
Impressions refer to the number of times audiences see your content in news feeds. Impressions occur through paid and organic searches, social media advertisements and content marketing. Impressions are important because they tell online merchants how well their marketing campaigns are working, which can support strategy improvement.
Reach focuses on the number of unique users who see a piece of your content. This includes your number of followers and subscribers on your website and social media. Ecommerce business owners use reach metrics to find out if enough people are seeing their digital content. They can improve their reach by modifying their marketing strategy to make their content visible in more places.
22. Program participation rates
Ecommerce retailers sometimes use customer loyalty initiatives, review programs and other engagement strategies to encourage CLV. Businesses can increase customer satisfaction and brand loyalty by building customer relationships through various participation programs. Program participation rates can give you insight into customer retention rates, which can lead to strategies for reducing marketing costs and increasing revenue.
What are the most important metrics for ecommerce?
How do you measure ecommerce performance?
- Sales Conversion Rate. …
- Website Traffic. …
- Email Opt-in Rate. …
- Customer Lifetime Value. …
- Average Order Value. …
- Customer Acquisition Cost. …
- Shopping Cart Abandonment Rate.