There’s no better time than now to start an eCommerce store. Consumers plan to spend close to $1 trillion on eCommerce in 2021. As the world continues to go online, that means that number is likely to grow.
The question is, do you have what you need to stand out from the crowd and compete in a crowded market?
You need to track the right eCommerce metrics if you want to run a successful store. Keep reading to learn every business metric that a small business owner needs to pay attention to.
Cost Per Customer
While you may be able to get free traffic to your store for a while, there’s no guarantee that it will last forever. That’s why many eCommerce stores invest in paid ads to continue growing their customer bases. The question is, will paying for ads be profitable?
Before answering that question, you need to know how much it costs on average to get a customer. You should already know your profit margin on your items. When you see the cost per customer, you can determine whether or not a marketing channel is worth pursuing and optimizing.
Whether you pay for ads or not, some of your visitors will convert to customers, and others won’t. While you can wing it and ignore your conversion rate, that means you can’t do anything to measure how changes impact that number.
Knowing your conversion rate means you can make small changes to your website copy and ads to see how many more people convert to customers. These eCommerce KPIs are essential to optimizing your store to produce the most sales.
Customer Lifetime Value
Once you know how much it costs to get a new customer, knowing how much they spend on your store is the next vital metric to track. You can’t get the complete picture when someone buys from your shop once. To know how much value your ads have, you need to understand how much someone spends during their lifetime.
You can combine your website metrics with other data sources like the ones from redirontech.com to truly understand how much people spend on your products. Your goal is to add enough value to increase the average customer lifetime value for your store.
Shopping Cart Abandonment Rate
Some customers think they’ll make a purchase at your online store when they arrive. They pick the products they like and add them to their cart. However, not everyone goes to the final step of the process and makes the purchase.
This is called an abandoned cart. This statistic will tell you how many people go through this process and don’t buy. It’s important to know this to understand if there are points in the checkout process customers don’t understand and helpful in reaching back out to people to finish their purchases.
Don’t Underestimate the Value of eCommerce Metrics
You have a lot more to track with an eCommerce store than content if you want to find success. Without having a way to track important revenue metrics, there’s no way to measure how effective your store is running. Keep the eCommerce metrics above in mind to ensure you have all the data you need to find success with your online store.
Of course, there is a lot more to running an eCommerce store than tracking metrics. Check out the latest articles to learn everything it takes to run a successful eCommerce brand.