Every business wants to make sales. Don’t they? So all business try to evaluate the performance, when they perform well, they do well, when they do well, they grow, when they grow, they make more money, when they make more money, they increase the number of people, who are employed, when there are more people employed, people have a job and are happy.
When people are happy, they pay taxes, when they pay taxes, government is able to pay for schools, hospitals, roads and defence. The above cycle continues, which means the more successful a business is, the better it is for everyone.
Ecommerce metrics help you with analyzing the performance of your business. For example, analytics like conversion rate and bounce rate give you an idea about which of your marketing efforts are working and which are not providing any returns. It also suggests the areas of improvement that can be done in the business. Analytics tools will help you track performance.
Metrics are a vital means of measuring the results of your Ecommerce business. Without metrics you would have no idea if your business was growing or shrinking, if you were doing better than your competitors or in fact, what exactly you should do to improve your business.
In order to run an ecommerce business, it is imperative to track various metrics. Below are a few important metrics that every ecommerce business needs to track:
- Sales Conversion Rate
- Website Traffic
- Email Opt-in Rate
- Customer Lifetime Value
- Average orders per day
- Average Order Value
- Customer Acquisition Cost
- Shopping Cart Abandonment Rate
Having the right Ecommerce metrics in place is vital in understanding how your store is performing, identifying problems and making changes to improve the profitability and efficiency.
Purchase decision occurs after the purchase decision is made. It is called Post-PURCHASE-Decision. For example, you buy a shirt. Someone asks you, hey! How much that shirt cost? You will answer, not to tell you how much you have paid.
Because, first, you have made the purchase decision. Then, you need this information to make the purchase decision. So, the information that you need must be inside the store. So, I think Ecommerce Metrics are very important for Ecommerce.
A conversion rate of 3% is considered to be an excellent and attainable rate. For track and improve your store ecommerce metric contact us!