3 metrics all ecommerce sellers must track to succeed
Looking forward to building a successful store? Have a look at these essential ecommerce metrics and learn how to improve them.
Traffic is comprised of all visitors coming to your site from every source. You may have several sources: referral, organic, direct, social and email sources. You can check all of them on Google Analytics.
The amount of traffic coming to your site will usually determine how many new customers you receive and how many sales you make. It’s not only about bringing traffic but also about bringing the right traffic. The quality of the visitors you bring is as important as their number. Look for those who are potentially interested in buying your product.
There are two ways to improve your traffic:
- The fast way: it relies on paid marketing and can bring traffic to your store from the very first moment. You don’t need a huge budget to create your own ads campaigns.
- The slow way: it relies on non-paid sources of traffic. It’s considerably slower but it’s results are also important. Organic search results, organic social media traffic, content marketing and email marketing are good examples of it.
2. Conversion rate
Conversion rate means sales. It’s the percentage of your site’s visitors who make a purchase. In order to calculate it you should divide the number of site visitors who make a purchase by the total number of site visitors. An average conversion rate across industries is about 3% according to The Monetate Ecommerce Quarterly Report.
There are many things you can do to increase your sales, but one more time: bringing the right traffic could be a determining factor to improving your conversion rate. Clever Adwords offers you the easiest and fastest way to bring the right traffic to your store.
3. Repeat Customer Rate
Repeat Customer Rate (RCR) measures the loyalty of your customers and is essential for a successful ecommerce store. It comprises the percentage of customers who return and make a second purchase on your site. To calculate it you should divide the number of total new customers by the ones who returned and made a second purchase.
In order to improve it the best option is to provide a great customer service experience. Sometimes old-fashioned kindness and respect is still the key to a reach customers’ hearts, try old fashioned tips for an excellent customer service yourself, and see the results!
Keeping the contact with your customers is also important. You can use email lists and newsletters to send relevant and timely content or offers to each customer. Bring them back to your site! Another point could be to create a loyalty program.
Controlling and improving these essential ecommerce metrics is the very first step to running a successful store.