What analytics metrics do you have to follow for your e-Commerce?

Nowadays, a lot of people are familiar with analytics and tracking website traffic, but there's much more to it than that. While you might think about metrics like conversion rate and bounce rate as important factors in the success of your eCommerce site, there's also a whole world of data out there that you'll want to keep track of if you want to fully understand how your customers experience using your site.

1. Bounce Rate

Bounce rate is a metric that shows the percentage of visitors who viewed only one page on your site. It’s an important indicator to track because it gives you insight into what your visitors like and dislike about your website, which helps you make decisions around improving user experience and increasing conversions (if this sounds familiar, see our article on conversion rates).

You can check this metric on Google Analytics Platform or inside your backend platform if you have an analytics service tool installed.

2. Traffic Sources

You'll want to check out your organic search, paid search and social media traffic. For example, if you're a retailer selling clothes, you'll want to know how much of your traffic is coming from paid ads in Facebook or Instagram.

You can also look at other sources like offline advertising, email marketing and influencer marketing campaigns.

3. Conversion Rate

While you may be familiar with the term "conversion rate," it's likely that the meaning of this metric is vague to you. To put it simply, the conversion rate is a measure of how many people who visit your website perform any desired action (such as making a purchase or signing up for an email list). Conversion rates are important because they help you understand how effective your digital marketing strategy and website are at driving customers to take action. In order to improve these metrics over time, it's important to track them regularly using analytics software like Google Analytics on backend site features.

4. Average Order Value

Average Order Value (AOV) is the average amount spent per customer, and it's a great way to understand how much your customers are spending.

This metric can help you with customer experience analysis by identifying trends in product categories that are growing or falling in popularity. For example, if you see a decline in orders for certain products while others continue to rise, this might indicate that customers aren't happy with what they're buying from you. You could then adjust your product selection or marketing strategy accordingly.

In terms of marketing, knowing your AOV will help you understand where most of your revenue comes from so that when making future decisions about marketing campaigns, it'll be easier to determine which ones will bring in more sales than others.

5. Customer Acquisition Cost (CAC)

Customer Acquisition Cost (CAC) is a metric for measuring the cost of acquiring a new customer. It's calculated by dividing the total cost of customer acquisition by the number of new customers acquired.

You'll want to know this number because it helps you understand how much money you're spending to attract new customers, and whether that money is being spent on channels with positive ROI or not.

6. Lifetime Value (LTV)

Lifetime Value (LTV) is a metric that measures the value of all future purchases made by a customer. It's calculated as the total revenue generated by a customer over their lifetime, divided by the number of times they've made a purchase. LTV is one of the most important metrics in eCommerce because it tells you how much money you can expect each individual customer to spend with your company in the future.

LTV is commonly used to calculate Customer Acquisition Cost (CAC), which tells you how much it costs you to acquire a new customer, and Break-even Analysis, which helps determine whether or not it makes sense for your company to continue operating at its current size or if expanding would be more profitable in terms of net profit margin percentage points.

7. Track your KPIs to understand where you need improvement

When it comes to measuring the success of your eCommerce business, you need more than just a handful of metrics. To get an idea of how well your store is performing, you need to track the key performance indicators (KPIs) that matter most.

For example, if your goal is revenue growth, then sales metrics like order value and revenue per visitor are going to be important for tracking progress. Likewise, if customer retention is a big focus for you, consider tracking things like loyalty rate or cart abandonment rate. If user satisfaction is key, then look into metrics like average time on site or bounce rate—anything that can help improve customer experience can have a major impact on overall performance.

Don’t forget, analytics is a powerful tool that allows you to understand your customers and their needs better. With the right data, you can make informed decisions on where improvements should be made and how those improvements will affect revenue. So don’t be afraid to dig into your data!

KEY TOPICS:

1. BOUNCE RATE

2. TRAFFIC SOURCES

3. CONVERSION RATE

4. AVERAGE ORDER VALUE

5. CUSTOMER ACQUISITION COST (CAC)

6. LIFETIME VALUE (LTV)

7. TRACK YOUR KPIS TO UNDERSTAND WHERE YOU NEED IMPROVEMENT