Have you used tracking solutions for your eCommerce business? What eCommerce metrics should you care about? In this article, we will give you a clear idea about the KPI metrics that you must track for your website.
Successful online stores track every interaction on their sites. This is not necessary. You should consider measuring these eight fundamental objects of your business. Analyzing results from these metrics will help you understand which campaign works well.
1. Total Click and Total Impression in Google Search Console – Your performance on Google Search
Total Impressions is the number of times your website was showed as a result on Google’s search result. The impressions are important for your business to understand the big picture. How often potential visitors search for relevant info on the web? If your website doesn’t reach enough traffic, you should think of revising your titles and descriptions that are shown in Google.
Clicks are the total number of clicks from Google search results pages (SERPs) to your website. We advise you to compare this metric with Sessions and Unique page views on Google Analytics.
To track these metrics, you need to sign in at Google Search Console, add your website and verify it. After few days, just check the tool again for the new data.
Also with this tool, you can watch two more metrics – Average CTR and Average Position.
Average CTR means Average click-through rate. The metric is equal to the click count divided by the impression count. Use it to find how well your title tags and meta description tags drive searches on Google to your site.
Average Position is the average ranking of your website’s URLs for the Google search queries.
2. Conversion Rate
A “conversion” is a different thing based on what is important to measure depending on the specific goals for the eCommerce site. Conversion goals can be set up using Google Analytics.
A conversion can be tracked each time a website visitor takes an action on your website. Another tool which provides conversion rate measurements and solutions is Sumo.
Conversion rate = Number of visitors completing your goal actions / Total number of visitors
Conversion rate formula is simple. If we try to measure lead generation, the metric is calculated in this way: the number of leads collected, divided by the total traffic to site x 100 = conversion rate. If we try to find sales conversion rate, the formula is the number of sales divided by the number of visitors x 100 = conversion rate.
3. Subscriber Growth Rate
This metric shows how fast your email list is growing. It is calculated by your total number of new subscribers minus unsubscribers, divided by the total number of email address on your list.
Usually, all automated email marketing platforms provide analytics data for list stats. For example, this can be found under Lists section on MailChimp, tab to a concrete list and click on Stats and press Overview.
4. Email Conversion Rate
This is the part of email recipients that completed a sale after clicking through links in your email campaigns. It is calculated by a number of sales from emails divided by a number of total emails delivered multiplied by 100.
For example: 800 sales ÷ 75,000 total email delivered * 100 = ~1% conversion rate
You can track the campaign conversion in MailChimp by setting up a conversion tracking goals. Google Analytics gives a data for conversions in Acquisition reports section.
Bonus: In the website www.emailmarketingroi.com you can calculate your ROI performance of email campaign.
5. Cart Abandonment Rate
What is Shopping Cart Abandonment Rate? Shopping cart abandonment is when a visitor starts the purchase process but leaves before the purchase is completed.
“According to study from Baymard Institute, cart abandonment rate statistic shows that:
“69.23% – average documented online shopping cart abandonment rate”
Cart Abandonment Rate is an important statistic to track for online eCommerce sites. Any changes to the abandonment rate will have a direct impact on the business profits.
Bonus Tip: How to optimize your store shopping cart functionality? Look at point 5 in the article: 10 Easy E-commerce Strategies to Help You Reach More Customers.
Abandoned rate can be calculated in percentage by using this formula:
Cart Abandonment Rate = 1 – (number of orders placed/number of shopping carts created)
If your online store is based on WooCommerce/WordPress just check this free plugin Abandoned Cart Lite which can track abandoned orders value and can assist in recovering orders. You can use Google Analytics and setup eCommerce tracking. Your results are presented in Conversions > Shopping Behavior.
6. Number of Transactions
The eCommerce transaction happens when we have a purchase order. The transactions metric is fundamental for web store because shows total sum of transactions on the site. For example, 238 transactions mean 238 purchase orders were placed on the web store.
You can use statistic data to make a future decision about products and website page’s performance. Transactions tell you about how your business is performing. All data about the transaction is covered by your platform reports for sales. For example, in WooCommerce this metric can be viewed in “orders placed”:
7. Average Order Value (AOV)
The metric gives to you the average total of every order placed over a defined period of time. The formula for AOV is when dividing sales revenue by the number of orders. Keep in mind that the AOV value is determined using sales per order rather than sales per customer. Calculating AOV for your eCommerce store helps you test your online marketing efforts and pricing strategy.
AOV = Revenue / Number of orders
When you start tracking your average order value, it can help you plan your store’s advertising budget. This metric is also important for digital marketing strategy and shows how much it cost to you to get each order.
You can track AOV easily with Google Analytics eCommerce tracking. WooCommerce/WordPress users can use Google Analytics for WordPress by MonsterInsights plugin and set it up to easily track the average order value.
8. Traffic source
Where do the website visitors come from – direct or from social media, paid or organic campaigns? Mobile or nonmobile? How do they arrive on the site – from search, email or referrals?
These eCommerce metrics are important in understanding more about your potential and current customer’s behavior and specifics. The analytics about the traffic source can be implemented in possible marketing campaigns for the specific target audience.
For example, in Google Analytics the main traffic source groups and channels show where the traffic came from and how (organic or paid) they are acquired.
The important question is: Which traffic sources generate the most of your eCommerce revenue? In Google Analytics this can be set up in Audience > Ecommerce > Default Channel Grouping > Campaign.
For WordPress websites, there are plenty of plugins that track traffic sources. Visitors Traffic Real-Time Statistics is one of them and provide good analytics dashboard with metrics like including browser versions, country, search engines, referrers, searches, search words, and visitors.
Some of the explained metrics don’t need to be monitored every day. They need monthly or weekly attention. Tracking it permanently is necessary and helps you analyze your eCommerce site and product’s performance. The importance is to understand how to boost your sales and revenue by tracking these 8 eCommerce metrics in your website.