What is Metrics?
Metric measures an organization's behavior, activities, and performance and how businesses are acomplishing their objective.
Optimize the right Metrics for your business
We have listed out few E-commerce metrics that will give you effective impact on your business.
Let's get started with few priority Metrics
1. Total Sales / Revenue :
One of the most important metrics for you business to have a look on the customer acquisition cost.Compare your performance data with the previous year so that you can use diffrent startegy for more success.
(# Gross sales) - (# Returns and Discounts) = Total Sales
2. Net Sales / Revenue :
Net sales revenue contrast with gross revenue it shows you the total money the business earned while doing sales with their customers.
(# Gross sales) - (# Shipping and Taxes) = Net Sales
3. Sales Converstion Rate :
Your business conversion rate shows the percentage of customers who reachs your website or make a purchase.
Most of analytics tool can calculate converstion rate but can find it manually by dividing the number of people who bought a product by the total number of visitors.
(# Of Sales) / (# of Users) x 100% = Conversion Rate
4. Average Order Value :
This metrics track the amount spent each time a customer visit the website to buy a product or via mobile app which will helps you understand the customers reviews and can make the business sales descision according to the visitors.
(# Total Revenue) - (# Total no. of orders) = Average Order Value
5. Bonus Rate :
Bonus rate means the percentage of visitors comes to your website and leaves without making any purchase.And one factor may increase your bounce rate is relevancy, if you target our visitors with keywords in such you should adjust your SEO strategy to focus on long-tail keywords.
(# Visitors who din't click) / (# Total no. of visitors) = Bounce Rate
6. Number of Sessions :
Using Google Analytics you can see the no. of visitors who visited your site in a given period.You may have seen many purchases falling within one to two visit range so knowing your average time to purchase products can help you make smart decisions on marketing and you can also set up a special email marketing campaign for a store that sends detailed information to shoppers based on what they were looking at.
7. Session Value :
If the time of purchase startegy works good then you will have good no. of repeted visitors as they try to decide themselves to purchase from your site.The more repeat visits you have, the better chance you have at establishing a long-lasting relationship with a customer so you have to encourage repeat visitors by offering incentives or a special coupon code to your customers< that will leads to great conversion rate.
(# Total Sales) / (# Total no. of visitors) = Session Value
8. Cart Abandonment Rate :
This is another key element for e-commerce stores ,the percentage of shoppers who add the items in the cart but never go through purchase and there may be many reasons:
- Product Cost
- Shipping Cost
- Payment Method at Checkout
(# Total no. of orders) / (# Total no. of visitors who add products in their cart) = Cart Abandonment Rate
9. Cost of Goods Sold :
COGS is important e-commerce metric because it shows how much your business spend in selling your products and services. It measures the following :
(# Beginning Inventory) + (# Purchase) - (# Ending Inventory) = COGS
10. Gross Profit :
Wide range of profit margins of products go up and down in market that effects your revenue, even though it indicates heavy traffic always on your website but it doesn't mean more purchase ,ultimately it shows your business performance.
(# Net Sales) - (# Cost of goods sold) = Gross Profit
11. Cost per acquisition :
This metric measures the aggregate cost of a customer taking action on the website which leads to high Conversion rate.
(# Marketing Expenses) - (# Total no. of customers) = Gross Profit
12. Page Load Time :
User engagement plays a major role in this metrics because if the webpage is taking time to load more than three seconds the visitors abandons the page and leave.Make sure your website loads fast and visitor not to wait to purchase your product as it can lead to more bounce rate.