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Ecommerce Metrics You Should Be Tracking

Ecommerce Metrics You Should Be Tracking

By Liz Coulson, April 18th 2019

There are hundreds of metrics you could gather for your ecommerce business, so it is all too easy to sink all of your time into it. In this article, find out about the key metrics you should be gathering to improve your business.

We'll kick this off a little differently to what you were probably expecting – statistics alone are pointless. "So why have you written this?" I hear you say.

When you gather the statistics, you also need to analyse them and extract hidden information; without this, you're wasting your time. The hidden information will help you make improvements – keep this in mind when reading about the metrics you need to be gathering.

For example, picture this; your bounce rate metric for desktops is significantly higher than other devices. This information on its own is useless.

However, it could indicate problems with your website on desktops – perhaps the usability or design. Knowing this gives you the chance to review it and fix it.

Website Metrics

Conversion Rate

The percentage of visitors that have completed your desired action.

There are lots of different actions you can track the conversion rate of; email subscribers and account creations are just a couple of examples. But arguably, the most important for ecommerce businesses – completed purchases.

You need to know how many people are visiting your website and out of those people, how many are purchasing items.

Rather than focusing your efforts increasing your visitors to your website, focus them on improving your conversion rate. Afterall, this is where you make your money.

The Maths

(Conversions / Total Visitors) * 100

Cart Abandonment Rate

The percentage of people that add products to their basket but don't go ahead with the purchase.

To give you an idea of cart abandonment stats, the average online shopping cart abandonment rate is 69%+, according to the Baymard Institute 1.

There could be many reasons why people aren't going ahead with their purchase, but it's up to you to improve buying journeys, giving people as few reasons as possible to abandon their carts and increase your conversion rate.

If your check out page needs a review, have a read of our Optimise Your Check Out & Make More Sales blog.

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The Maths

(Shopping Carts / Completed Transactions) x 100

Tip: After you've improved your checkout page and buyer journey, you could implement a remarketing campaign to target those that didn't go ahead with their purchase.

Customers who see retargeted ads are 70% more likely to convert on your website 2.

Bounce Rate

The percentage of website visitors who left after visiting one page.

First of all, decide on whether having a high bounce rate is a good or bad for you; generally it's negative, but if your visitors can only explore one page, your bounce rate is going to be high. If you have a high-bounce rate and you want your website visitors to explore more than one page of your website, it'll be worth investigating why people are leaving your website so quickly.

So where do you begin?

If certain pages on your website have a high bounce rate you know where to focus your efforts; it could be because the content isn't engaging or because the journey isn't easy to follow. For example, if you want your visitors to follow a certain journey by visiting another page, make this action as simple as possible.

However, if the bounce rate is high across your entire website, you might need to make wider improvements.

The Maths

Single-Page Sessions / All sessions

Again, most tracking tools work this out for you.

Customer Acquisition Cost

This is what you pay, on average, to get a new customer.

Knowing, on average, how much it costs you to get a new customer will allow you to improve your marketing campaigns, and also make educated decisions. You wouldn't want to implement a marketing campaign knowing that you won't get enough new customers with this information to hand.

Remember to work this out for individual marketing campaigns you have running. This will allow you to compare their efficiency and put more of your spend into the most successful campaign.

The Maths

Marketing Cost + Sales Costs / New Clients

You may need to expand this sum to include your other acquisition costs work out your own customer acquisition cost but this is a good starting point.

Marketing Metrics

Impressions

The number of times your content was on screen.

Impressions are commonly gathered when businesses are participating in paid promotion like Facebook or Google Ads, but it's also a good stat to gather for your organic posts too. It gives you an opportunity to review which posts your audience engage with most.

The Maths

Impressions are automatically calculated by platforms.

Reach

The number of people who saw your content at least once.

Reach and impressions can be confused, but they are very different to each other. Reach is a good stat to know and compare to impressions, but it can include one person viewing your content multiple times.

The Maths

Reach is also automatically populated by platforms.

Click-Through Rate (CTR)

A ratio showing how often people who see your ad end up clicking it.

Click-through rate can be used to review how well your ads are performing. If you've got a low CTR you know that your ads need to be reviewed to increase engagement and if it has a high CTR, you know your ads are performing successfully.

The Maths

Unique Clicks / Advert Impressions

Popular websites like Google will provide you with a CTR.

Now, you can track the metrics that are useful and you will be able to find hidden information you might have been overlooking, helping you make those all important, smarter and improved decisions.

Now you're getting more from your metrics, get more out of your couriers with Despatch Bay. Fulfill new orders, arrange shipping and organise returns in seconds.

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Sources

  1. https://baymard.com/lists/cart-abandonment-rate
  2. https://www.readycloud.com/info/these-2018-retargeting-statistics-prove-it-works