Essential Metrics for eCommerce
Metrics measures a website’s performance. It helps determine the condition of the store’s success consistently and make decisions accordingly.
There are several metrics you can follow. In any case, just a couple of them straightforwardly speak to the condition of your business and can transform into noteworthy bits of knowledge that help you develop your business.
There are three significant metrics for eCommerce which cannot be ignored-
1. Sales Conversion Rate-
Sales conversion rate is the percentage of visitors on your website that make a purchase. Higher the conversion rate, more successful is your marketing campaign. Sales rate conversion helps understand how your sales funnel is performing and what marketing efforts are giving the best return on investment.
You can calculate the sales conversion rate with this formula-
Number of sales / Number of users x 100
For example, if you have 1000 unique visitors on your website in a month, and you made 10 sales, your conversion rate is 1%.
2. Average Order Size-
Now and then, it might so happen that revenue can drop on account of a plunge in transformations among lucrative clients. To dodge such obstructions and tackle them, Average Order Value (AOV) is the thing that you ought to follow. It is an immediate pointer of what is really occurring on the benefits front.Average order value can be calculated with the help of this formula-
AOV= Total revenue / Number of checkouts
3. Customer Retention Rate-
We know retention is the most difficult thing in today’s generation due to diverse competition in the industry. So customer retention rates become an important KPI(Key Performance Indicator) for your eCommerce business, as it is a decent measurement to follow as an indicator of how held your clients are.Retention rate can be calculated with this formula-
CRR= (N-E/S) x 100
E= Number of customers at the end of the period
N=Number of customers acquired during the period
S= Number of customers at the start of the period.