It is widely said that β What you cannot measure, you cannot manageβ. This saying holds when measuring the performance of your e-commerce business.Β
Measuring the data can help you strategize better, identify strengths, address weaknesses, and adapt to the dynamic market needs. In this blog, we will discuss the four key metrics to measure your e-commerce business performance.
Conversion rates help in evaluating the performance of the website, marketing campaigns, and conversions.Β
Conversion Rate=Conversions/Total number of visitors* 100
A good conversion rate means that e-commerce businesses are spending less on marketing efforts and earning more from customers. A good conversion rate falls between 2% to 5%. The conversion rate is directly proportional to the business ROI.Β
A/B Testing improves the conversion rates. A/B Testing will help you to
You can also improve the conversion rates by integrating clear and compelling CTA buttons and improving the user experience. Social Media provides a great platform to boost your e-commerce sales.Β
Customer Acquisition Cost (CAC) is the second most important metric to track your e-commerce business performance. CAC helps you to determine the money you are spending to acquire a customer.Β
Customer Acquisition Cost= Marketing expense/ number of new customers
Customer Acquisition Cost is important for e-commerce businesses as it helps in improving return on investments and in enhancing profitability and profitability margins. To lower your e-commerce business CAC, you must-
Average Order Value (AOV) measures what a customer spends on a single transaction at a specific point in time. A higher Average Order Value (AOV) is equal to higher sales & revenue, faster profitability, greater ROI, and increased customer lifetime value.
You can increase your e-commerce businessβs Average Order Value (AOV) by:-
Customer Lifetime Value (CLV) represents the total value a customer will generate over the entire relationship with the brand. It helps you to assess the value of the customer.Β
But why is Customer Lifetime Value (CLV) important for your e-commerce business? Customer Lifetime Value (CLV) helps you to save money, spot and stop attribution, and find the best customers & replicate them.
Ways to improve the Customer Lifetime Value (CLV) are-
By using the metrics discussed above, you can track the performance of your e-commerce business performance. Ultimately, e-commerce businesses have to understand the customer experience and measure and improve the feedback at every touchpoint.Β
Constant improvement and social listening will help you sail through the dynamic customer preferences and digital landscape.
Nowadays, influencers dominate the purchasing decisions or lifestyle choices. According to Collabstr's 2022 Influencer Marketing…
Are you looking to amplify your e-commerce business sales through social media influencer collaborations? If…
Ready to unlock the power of social media to boost your E-Commerce sales? Join us…
In today's dynamic digital sphere, it is tough for brands to stand and pivot their…
Are you ready to harness the power of social media to boost your brand's online…
In today's digital age, it's crucial for businesses to embrace the power of digital marketing.…