The whole Internet is powered by data. In this sea of information it is extremely easy to get lost. Sure, you collect data on your client through many different tools, but do you know what exactly is important? What metrics and KPIs are the ones showing your real success?
The conversion rate shows how many people from those who have seen an item in your shop, do actually buy it. In order to improve this metric, you need to create an excellent experience throughout the whole marketing funnel. Your site should be fast, well-organized and secure. Your products must be with full descriptions and accurate photos. Your purchase process should be easy and fast.
Cost per acquisition
This is the cost to get a new client. It includes the money spent on ads, email-marketing, promotions, etc. Every expense that leaded to the purchase of an item on your page. You can use it to define your marketing budget.
Average order value
AOV is the average that your clients spend on an item on your store. It can help you see how much your clients are willing to pay per visit. If you increase this number, you can have higher revenues from the same number of shoppers.
Cart abandonment rate and checkout abandonment rate
These two KPIs can be quite connected. Higher rate of abandonment can show different problems during the purchase process. Maybe your clients didn’t know the shipment cost before that? Or maybe your site doesn’t support the popular payment methods preferred by your customers? Maybe it is just not clear enough how to finish the purchase? Fixing such problems can lead to more sales.
Customer lifetime value
CLV is the total expected money that a client will spend on your portal during their whole lifetime. You would like to have loyal client with high CLV. Keep them satisfied and make them return often to your site.
Return on advertising spent
It is the total amount of revenue returned divided by the total amount spent on advertisement. You can measure how successful your marketing campaign was. You can tweak your ads and focus on the more successful products or services that you have to increase this metric.
It shows what portion of the visitors just enter the site and leave. You can try to keep them on your site by showing similar products around or under the one that got their attention in the first place. Or you can add complimentary products that go along with the main item.
High bounce rate can mean that what your ads show is not synchronized with your site. Your visitors might not get the promise of the ads.
You will be spending money on ads through different channels. It is very important to analyze the results and check which of these channels are more profitable. You can optimize the budget according to this KPI.
Listen to what your clients say. Do they like your products? Are there any problems? The reviews are direct feedback that you can use to improve. You can use it to re-arrange your product portfolio or you can fix another process of the purchase that bothers your customers.