Numerical data helps you play it safe in business. Be it an online store or a virtual one. With accurate calculations and data, you can make better estimations and investments. It helps you up to your profits and escalates your business strategically, particularly if you own a Shopify store owner.
Here in this post, we will look into the top ten eCommerce metrics that you as a Shopify store owner should analyze.
Top 9 Ecommerce Metrics for Shopify Stores to Track:
1. Bounce Rate
By definition, bounce rate refers to the number of people that click on your website but leave almost instantly. Now, the reason they give up could be the slow speed of your website, irrelevant content or subject, unappealing web design, etc.
However, by far, the most prominent factor of a high bounce rate is slow speed. According to Google statistics, 53% of people would leave immediately if your site takes more than three seconds to load. What you can do to improve this is optimizing page load time. Plus, use pop-up ads to hold your visitors’ attention. This measure directly impacts the inflow of website visitors and traffic. Thus, it demands monitoring and attention.
2. Pages per Session
Similar to bounce rate, pages per session also help determine web traffic status. If your user visits more pages in a single session, then that’d mean that your website experience is engaging. If not, you may have to create more relevant pages. For this, you can work on developing an effective ecommerce sales funnel for your audience.
It is a process through which you guide your user from stage one to the last stage, i.e., from brand awareness to purchasing a product. In doing so, you will come across the need of creating multiple pages.
3. Conversion Rate
Perhaps, as a Shopify store owner, the conversion rate is the most important value to track. Fundamentally, conversion rate refers to the number of people that got convinced by your CTA’s and purchased something from your website. To track this, you need to know the number of visitors you received and the total number of goods you sold.
Divide the two values, and you’ll know the conversion rate. Of course, there are several tools and software like Google Analytics as well, to help you keep a track of it. Along with this, the Average Order Value (AOV) will also help you develop a more effective sales strategy.
4. Cart Abandonment Rate
Abandoned carts can harm your positive growth. So, most certainly, you would want to reduce these as much as possible. According to this list, the average cart abandonment rate is around 69.80 percent, and the primary reason behind this abandonment is mostly window-shopping or casually browsing.
As per this, you should work on making your advertisements and site as compelling as possible.
Incorporate strong call-to-action words like Limited time offer, etc. If your customers are leaving because another site is offering better rates, then you can offer discounts and concessions.
5. Customer Retention Rate
Customer retention refers to how many customers keep on coming back to your website and frequently purchase goods. It refers to the number of repeat customers. The greater the number, the better profits you will generate, and the better brand reputation you will acquire. Consistent purchases from the same name will help widen the circle of your clientele. It will help you in stepping up to development and expansion soon after the recognition phase.
6. Customer Lifetime Value
Customer lifetime value is the overall sales that you could expect from an individual visitor. What’s the total amount that they could likely spend in their overall interaction with your store? For how long?
Estimating this will help you predict annual sales, and work in introducing products that are similar to the popular ones.
Perhaps you could introduce related products to boost sales. For example, if you sell cooling systems and a certain product is more popular, you could introduce relevant accessories or later updates.
7. Net Promoter Score
Another aspect to track is customer satisfaction. It helps your brand grow in terms of sales. If your current customers come back to purchase again and also leave their feedback and positively report your brand, then they will be automatically recommending your brand to friends, family, and others. Thus, doubling your sales. To track this, you can analyze the Net Promoter Score, which are surveys that permit the customer to rank you out of 10.
Note that the return rate is a branching metric that can help you improve your score on the NPS survey. Return rate refers to the percentage of products returned by your customers. If it’s the same product returned over and over again, then you may as well look into the quality check of that product.
8. Email Marketing Metrics
At times, your visitor may not immediately purchase something after landing on your page. To deal with this, you need to make effective use of email marketing and then keep a track of that data for your website’s growth.
You can do so by tracking email opt-in rate, email click-through rate, as well as email, unsubscribe rate. You should work on leveling up your email opt-in and email click-through rates. That’s because as people sign up for your newsletters or email you could have them go through your effective sales funnels. Thus, promoting purchases. However, the unsubscribe rate should be negligible to none.
9. Revenue Metrics
Revenue is technically the fruit of all your effort. So, tracking it is a must. You could do it weekly, monthly, bi-monthly, or annually. You could track them as per different sources as well (channel).
Summing up, all the above-mentioned metrics have several branching metrics that you will need to look into in great detail. Note that tracking, monitoring, and optimizing the metrics will require the input of the whole of your team. Make sure you don’t dive in single-handedly. It could get pretty messy! Good luck!