Drugi jezik na kojem je dostupan ovaj članak: Bosnian
By: Rilind Elezaj, Digital Marketing Specialist
If you are an e-commerce entrepreneur, metrics are everything. Measuring and optimizing everything about your store can be the difference between success and failure.
On the other hand, measuring and optimizing every available metric can be expensive, difficult and very time-consuming. Which is why you need to be smart about it. Instead of working hard, work smart instead. Know the right metrics to optimize for the best results. So what are some of these metrics? Read on to find out the best metrics that will revolutionize your e-commerce business.
1- Sale Conversion Rate
What is a sale conversion rate? It is the percentage of the number of your sales divided by the number of leads. Let’s elaborate this with an example: if you have 1000 visitors to your website a month, and from these visitors, you get only one sale, this makes your conversion rate 0.1%. Which means you need to optimize your conversion rate if you want to stop losing money spent on lead generation. Improving your sale conversion rate from 0.1% to just 1% means that you will be getting 10 sales out of every 1000 visitors, which is a huge boost to your business.
Sale Conversion Rate can be tracked using Google Analytics. To improve your conversion rate, you need to do a few things:
- Use high-quality images: stand out by not compromising on the quality of the images you use on your site.
- Add trust badges to let your visitors know that they can trust your site
- Reviews: Customer reviews from people who have used your product before will go a long way in building the trust of other potential customers
- Add a live chat option to allow your potential customers to communicate directly with your support team
- Your value proposition: why should your customers buy from you and not from anyone else?
2 – Website Traffic
This is another very important metric to track. Once you have optimized your conversion rate, you need to boost your traffic. This is because a 5% conversion rate will mean 50 sales per 1000 visitors and 500 sales per 10000 visitors.
You can view your traffic statistics from your e-commerce platform. To get even more traffic, you need to do a few things:
- Harness the power of social media
- Do search engine optimization to generate more organic visits
- Influencer marketing
3 – Email Opt-in Conversion Rate
Email marketing is a big deal. You need to harness this marketing channel if you want to take your e-commerce website to the next level. Email marketing, when used correctly, can provide an over 40x return on investment over all other channels such as social media.
Plus you can control your audience with email marketing. You can track your email opt-in rate in two ways. The first way involves consulting your email service provider to see how many people are opting-in to your list daily. The second way involves using your Google Analytics page to automatically track how many people are opting in.
The email opt-in conversion rate can be improved by:
- Offering incentives: what do your users get by opting in? Give them something extra. No one wants to just receive updates anymore. Make them feel like they are gaining something by opting-in to your mailing list.
- Switch up your incentives: Do not use only one offer. Change things up a little to keep everything interesting. Also, if your incentive is not working, try something else till you find something that works. Providing deals and discounts on products that they the customers have been viewing is an option on how to get them to visit your website more.
- Be more aggressive in asking for emails. Instead of burying your opt-in page in your footer, use a welcome gate form that users have to fill up before proceeding, or an exit intent pop-up for when users want to exit your site.
4 – Track Revenue by Traffic Source
You need to know where your customers are coming from. This will help you stop spending money trying to generate revenue from sources that only serve to waste your money. You need to identify the sources that are working and the sources that are not. This can easily be done through Google Analytics
To improve your revenue by traffic source, you need to stop spending money on channels that do not work and spend more on profitable channels. This sounds pretty straightforward but you would be surprised how many people do not do this. Non-profitable channels tend to market more aggressively, and it is very easy to fall for them.
5 – Average Order Value
The average order value is the average amount of money a customer spends on your site per purchase. This is the product of your total revenue divided by your total number of orders. The more a customer buys from you, the more profit you will make. The average order value is very easy to track through your e-commerce platform. You can also improve it by:
- Upselling or making customers buy more than they intended. This can be done using bundle sales, by making them take a more expensive option or by convincing them to buy something that complements their original order.
- Offer free shipping or any other free add-on for a higher purchase to make them buy more to qualify for free shipping
- Discounts on minimum purchases
These are just a few of the most important metrics you need to optimize. There are many more metrics out there, and you need to find the ones that work for your business. However, with these 5 essential metrics, you will definitely see a marked improvement in revenue after optimizing them.