Running an ecommerce store is no easy task. There are so many moving parts that it can be overwhelming to keep track of everything. However, tracking certain metrics is essential if you want your ecommerce store to be successful. In this post, we’ll go over 15 critical ecommerce metrics that you must track to make informed decisions and optimize your store's performance.
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Conversion Rate Formula: Total number of conversions / Total number of visitors Your conversion rate is the percentage of visitors who make a purchase on your site. This is one of the most important metrics to track because it directly correlates with your revenue. Use tools like Google Analytics to measure your conversion rate and see how you can optimize it.
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Average Order Value (AOV) Formula: Total revenue / Number of orders AOV is the average amount spent by a customer on each order. By tracking this metric, you can identify which products are driving the most revenue and make adjustments to your pricing or promotions accordingly.
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Customer Lifetime Value (CLV) Formula: Average purchase value * Number of repeat purchases * Average customer lifespan CLV is the amount of revenue a customer is expected to generate over the course of their relationship with your store. This metric helps you identify your most valuable customers and can inform your marketing and retention strategies.
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Cart Abandonment Rate Formula: Number of abandoned carts / Number of initiated checkouts Cart abandonment rate is the percentage of visitors who add items to their cart but leave without completing the purchase. Tracking this metric can help you identify friction points in your checkout process and make improvements to reduce cart abandonment.
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Return on Ad Spend (ROAS) Formula: Revenue from ad campaign / Cost of ad campaign ROAS is a metric used to measure the effectiveness of your advertising campaigns. It shows you how much revenue you're generating for every dollar spent on advertising.
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Customer Acquisition Cost (CAC) Formula: Total cost of sales and marketing / Number of new customers CAC is the cost of acquiring a new customer. By tracking this metric, you can see how much you're spending on acquiring new customers and adjust your marketing strategy accordingly.
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Gross Profit Margin Formula: (Total revenue - Cost of goods sold) / Total revenue Gross profit margin is the percentage of revenue that remains after deducting the cost of goods sold. Tracking this metric helps you understand how profitable your store is and make informed decisions about pricing and promotions.
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Inventory Turnover Rate Formula: Cost of goods sold / Average inventory value Inventory turnover rate is the number of times you sell and replace your inventory in a given period. This metric helps you manage your inventory levels and make informed decisions about restocking.
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Email Open Rate Formula: Number of email opens / Number of emails sent Email open rate is the percentage of recipients who open your marketing emails. By tracking this metric, you can identify the effectiveness of your email campaigns and make adjustments to improve engagement.
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Email Click-Through Rate (CTR) Formula: Number of email clicks / Number of emails sent Email CTR is the percentage of recipients who click on a link within your marketing email. This metric helps you understand how effective your email campaigns are at driving traffic to your site.
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Bounce Rate Formula: Number of single-page visits / Total number of visits Bounce rate is the percentage of visitors who leave your site after viewing only one page. A high bounce rate can indicate issues with your site's design or content, so it's important to track and make improvements as necessary.
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Page Load Time Page load time is the time it takes for your site to load. This metric can have a significant impact on your bounce rate, conversion rate, and overall user experience. Use tools like Google PageSpeed Insights to measure your site's load time and make improvements as necessary.
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Search Engine Ranking Your search engine ranking is where your site appears on search engine results pages for specific keywords. By tracking your search engine ranking, you can identify opportunities to improve your SEO strategy and drive more organic traffic to your site.
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Social Media Engagement Social media engagement measures how users interact with your brand on social media. This includes likes, comments, shares, and other forms of engagement. By tracking this metric, you can identify which social media channels are most effective for your brand and adjust your strategy accordingly.
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Customer Reviews and Ratings Customer reviews and ratings provide valuable insights into the customer experience and can influence purchasing decisions. By tracking customer reviews and ratings, you can identify areas for improvement and showcase positive reviews to build trust and credibility with potential customers.
Automated Solutions for Tracking Ecommerce Metrics
Tracking all of these metrics manually can be a time-consuming and overwhelming task. Fortunately, there are automated solutions available to make tracking these metrics easier. Reporting.io is a powerful ecommerce analytics platform that provides real-time insights into your store's performance. With Reporting.io, you can track all of the metrics listed above and more, and use this data to make informed decisions and optimize your store's performance.
Conclusion
Tracking these 15 critical ecommerce metrics is essential for running a successful ecommerce store. By monitoring these metrics, you can identify areas for improvement, make informed decisions, and optimize your store's performance. Don't let the sheer number of metrics overwhelm you – with the help of automated solutions like Reporting.io, you can easily track and analyze all of the data you need to take your store to the next level.