Essential Metrics any Ecommerce should be tracking

No business can grow, progress, or develop without keeping track of their performance overtime. The most successful ecommerce are those who know how to harness data and make decisions based on them.

There are thousands of metrics that you can track and it can get overwhelming when deciding which of them you should be tracking. Here is a list of 10 most important metrics you can monitor to track your shop’s performance overtime.

  • 1. Conversion Rate:

    Conversion Rate is the number of customers who completed a sale after visiting your e-store and viewing your displayed products.

    Why to track it:

    Tracking conversion rate is important as it represents your store’s actual sales in comparison to the customers visiting your site. Also, conversion rate can be used along with other metrics such as Page Views, Average Order Values, and Traffic Sources to help you draw an insight into your visitors/customers behaviors.

  • 2. Gross Sales:

    Gross Sales is the total of all the products you’ve sold during a certain period of time; they’re your store’s total unadjusted sales.

    Why to track it:

    The tracking of how much you’re earning on each sale is extremely important in order to make sure that you’re scaling and growing properly.

  • 3. Average Order Value:

    Average Order Value (AOV) is the average monetary value of a customer’s transaction from your e-store.

    Why to track it:

    Keeping an eye on your customers’ AOV is important as it helps you to decide on your marketing efforts and your pricing strategy. Having a strategic plan to increase AOV is a direct way to drive revenue and increase your store’s profits.

  • 4. Cart Abandonment Rate:

    Cart Abandonment Rate is the percentage of customers who add an item(s) to their cart but do not go through with their purchase. This metric gives you an insight into how many of your customers are interested in the products you sell but do not actually proceed to buy them.

    Why to track it:

    By comparing Cart Abandonment Rate to other matrices you can be able to develop some strategies for reducing it and getting more customers to complete their purchase.

  • 5. Checkout Abandonment Rate:

    Checkout abandonment Rate is the percentage of customers who leave checkout without completing their purchase after they’ve initiated the checkout process.

    Why to track it:

    As it gives you information about the uncompleted transactions of customers who are willing to buy but don’t. Therefore, you’re able to develop strategies to make them finalize their purchase. It is important that you plan on how to decrease this rate over time as it have a direct impact on your revenue.

  • 6. Customer Lifetime Value:

    Customer Lifetime Value (CLTV) is the average amount of revenue you earn from a customer throughout the course of their relationship with your store.

    Why to track it:

    tracking it makes you see the value behind each customer to your store. You can use it alongside other matrices such as Conversion Rate, Customer Acquisition Coast (CAC), etc. to see what’s is going on with your ROI in the marketing and the customer acquisition campaigns.

  • 7. Device Type:

    Tracking the Device type is knowing how your customers are accessing your store; it’s important in order for your designing teams to be able to give them the customers the ideal experience they most certainly are looking for. You can also segment your ecommerce analytics by device type to see which devices are being used more frequently and start planning your UX to fit all the used devices.

    Why to track it:

    knowing which devices are being used helps in building an optimal user experience on your website; with observing this metric you’re able to advertise your website on all devices.

  • 8. Bounce Rate:

    Bounce Rate is the percentage of customers who leave your website after visiting only one page. Usually this entails either some serious UX issues, or poor marketing targeting strategies since customers landed on your page but haven’t found a value in your product.

    Why to track it:

    tracking bounces helps you understand how your visitors are using/interacting with your website so you can make some optimization and develop marketing decisions and strategies so your visitors have a clear understanding of the value behind your products.

  • 9. Traffic Source:

    Traffic Source is identifying the main channels through which your customers find you. This helps you focus your marketing and advertising strategies.

    Why to track it:

    knowing from where your shoppers and with also knowing how much revenue comes from each source helps you know which channel you should be focusing on when investing in marketing and advertising.

  • 10. Repeat Customer Rate:

    Repeat Customer Rate is the percentage of customers who have made at least two purchases from your shop during a certain period of time.

    Why to track it:

    It’s important for evaluating the customer experience and for understanding how much value your store offers to your shoppers.

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