The Most Necessary Ecommerce Metrics For Your Online Store

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The Most Necessary Ecommerce Metrics For Your
Online Store
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You know what your eCommerce business needs to
achieve desired results? You need to work on
E-COMMERCE METRICS. To become the best eCommerce
entrepreneurs or as the best eCommerce solution,
you need to focus on the metrics. In fact,
entrepreneurs obsess to measure and optimize the
metrics giving them better sales
results. However, if your business has reached a
certain point then there is no need to focus on
every single metrics.
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Instead, optimize and correct the right
metrics. Need to know what are correct
e-commerce metrics? In the post below I have
listed the 5 essential eCommerce metrics that
will have a huge impact on your business and
bring it on the right track.
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1. Sales Conversion Rate

• As an entrepreneur, you may know that there is no
  single formula for success.
• According to dictionary Conversion Rates can be
  defined as the percentage of customers who take a
  specific action you want.
• It is the percentage of website visitors who fill
  out the form, call your company and actually make
  online purchases.

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1. Sales Conversion Rate

• No matter what your current conversion rate is
  you can actually increase it. Some of the ways
  are-
• Customers Safety- The consumer must feel safe
  while buying anything from your store. Provide
  with SSL certification to your website to protect
  their transaction.
• Privacy Policy- Consumer information is very
  sensitive, so it becomes necessary for you to
  build trust and state clearly your privacy policy.

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Check For Errors In Content- Wrong Spelling and
incorrect grammar can lower down your sites
impression. Always double check content before
publishing. User-Friendly Gestures- Try to
include buttons that make the whole buying
process simple. Add Buy Now button on product
pages to avoid the buyer to scroll down the whole
page. Product Images- What is an eCommerce site
without a picture? Include proper pictures of
your products. They must be technically clear and
taken from every angle.
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Trust Factor- Live chat or the chatbots help you
gain a lot of trusts. It helps you win loyalty
and give your customers real-time
support. Alternative Payment Options- Trust me
buyers feel secure if you give them cash on
delivery options. Multiple payment options like
PayPal, Credit Card and Net Banking make the
buyer feel secure about the website while
shopping.
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2. Average Order Value

• Average order value in an eCommerce Metric that
  measures the average of a total order placed over
  a period of time.
• The average amount of money each customer spends
  per transaction
• Figured out by dividing your total revenue by the
  number of orders
• This is one of the important metrics for any
  online store to focus on and drive key business
  decisions like advertising, store layout, and
  product pricing.

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How To Improve Average Order Value

• Split up your customer bases like Low, Medium and
  High Spenders. Also, you can categorize them on
  the frequency of orders made and type of products
  they are purchasing.
• Once this is done your customers can be targeted
  with advertising according to their group.
• High spenders can be awarded free coupons and low
  spenders can be targeted with discounts and offer
  to improve their value.

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Other methods include

• Cross-selling additional products and
  services.
• Adding free shipping on higher orders
• GIve timely discounts

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3. Repeat Customer Rate

• The repeat customers spend 33 more than a new
  customer.
• Repeat customer rate is the percentage of
  customers who returned to your website to make a
  second purchase from your eCommerce store.
• You actually need 9 first time shoppers to get
  real conversion of 1 repeat customer!
• If someone gets happy with their first purchase
  and with your customer service they are likely to
  come back to your online site.

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Why Repeated Customers matter?

• Repeat customers are the crux of most successful
  businesses.
• They are the easiest customer segment to target.
• They are your brand ambassadors
• A repeat customer has 60-70 chance of
  converting
• They are easier to sell to.

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How to improve it?

• Provide great customer service
• Offer special prices, rates and offers to your
  repeated customers.
• Maintain database of such customers and send the
  relevant and timely content of offers and
  discounts.
• Evaluate the use of loyalty program.
• Personalised email content

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4. Website Traffic
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Website Traffic Is Important.

• Do You know what should be your 2018 Resolution?
  To increase traffic to your website.
• Website traffic is defined as all visitors coming
  to your site. You can easily get the count of
  traffic at your website by adding up all the
  visitors to your website from every source.
• Website traffic still remains important in 2018,
  as digital marketing is at its stake, it becomes
  important to analyze websites performance. It
  actually determines how many new customers you
  received and how many sales you made.

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How can you improve it?

• Invest in the non-paid source of traffic such as
  organic search results, content marketing, video
  promotions and email marketing to existing
  clients.
• Also invest in paid marketing and ad campaigns
  such as display ads, search ads and other ads
  aiming to target your potential customers.

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Also invest more and more in SEO Search Engine
Optimization

• It is the practice of making your website as
  accessible as possible to reach the target
  customers through search engines.
• While looking for traffic on your website, not
  only ask How many people visited but do check
  the following parameters-

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• How longer your users stay?
• Get the measure of metrics such as bounce rate
  and time on page as bringing huge traffic is easy
  but is useless if the traffic leaves the website
  within seconds.
• What percentage of visitors actually made
  purchases?
• Getting large audience is not enough if they are
  not right. Determine how many purchases are
  actually made on your eCommerce site by checking
  out the conversion rate.

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5. Revenue By Traffic Source

• Revenue by Traffic source is breaking down the
  total revenue of your website from organic
  searches, paid search, referrals etc. This
  eCommerce metric highlights all the sources of
  direct traffic for your eCommerce site.
• You can view the highlights by properly tracking
  your eCommerce stores activities through Google
  Analytics.

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To Improve Revenue By Traffic Source

• Identify and stop spending the channels that
  dont work
• If you find out any channel that is not yielding
  any traffic and not delivering any results then
  stop spending time and money on it.
• Double your investment on the channels that are
  profitable
• Scale up the channel that gives you traffic and
  invests more in it. Go this is your chance.
• Okay! Keep an eye on every end that brings
  traffic to your site, grow comfortable
  understanding your business, read all the metrics
  and work to improve them.

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Thank You