8 Key Metrics every eCommerce Business Should be Tracking
One of the problems, for any business using digital marketing, is that there’s just so much data to track that it becomes very easy to spend a lot of time analyzing without learning anything that’s actually useful.
That’s the sort of time-wasting that Chloë Thomas, author of ‘eCommerce Marketing’ likes to avoid!
So here is some advice, from Chloë Thomas, to help you avoid making the same time-wasting mistakes.
We need to track some stats so we know what to optimise; how to improve our performance, how to reduce our losses. But where to start? The key thing is to track performance over time, how did you do this month compared to last month? How did you do this month compared to this month last year? Start tracking them monthly, then when you’re happy with them and want to be more reactive move it up to weekly monitoring.
Just remember – there’s no point in compiling the reports if you’re not learning anything from them – reports for the sake of reports is a waste of your precious time.
These are the core items within the central equation in eCommerce:
Traffic x Conversion Rate x Average Order Value = Success
This gives us the three levers we can use to increase performance – more traffic, higher conversion rate, higher Average Order Value (AOV).
These are the make or breaks – the ones you need to keep an eye on to stay in business and in profit:
1) Total Sales
2) Total Orders
3) AOV = Average Order Value
4) Conversion Rate
Website / Traffic Numbers
This is all about the traffic sources – NOT the website as a whole. The traffic mix is what we care about – because that’s what we can change.
For each of these metrics look at the top 10 traffic sources to the website (by volume). Traffic sources are your Emails, Google Adwords, a Referring website, the Google search engine, Twitter etc. All this data is readily available in Google Analytics and you can set up a Custom Report to email this direct to your inbox every month / week.
2) Pages per visit
3) Conversion rate
4) £s per visit
By looking at the top 10 you can compare the performance of each traffic source against the previous month, and also look at how they compare to each other. So when one drops off you know to make it work harder.
The first time you look at these reports I suggest you go back a few months so you’ve got some history to compare against. You’ll probably find some results that shock you a bit – that’s fine, so long as you do something about it now you know.
Chloë Thomas is author of ‘eCommerce Marketing’ and ‘eCommerce Masterplan 1.8’. http://ecommercemasterplan.com
Chloë Thomas is available for interview and articles. Images are also available.
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