Online merchants can track their success toward their objectives by tracking e-commerce indicators. This information sheds light on the marketing initiatives taken by retailers and how consumers react to them. You can develop methods to boost customer service, boost client retention, and boost income by keeping an eye on e-commerce indicators.
Here you will understand the definition of e-commerce metrics and the various categories that they fall under to help with the creation of growth, marketing, and sales plans. Visit profitmetrics.io to get more information about e-commerce metrics.
What is e-commerce metrics?
Retailers can determine how well their online store is functioning by looking at e-commerce measurements, also known as key performance indicators (KPIs). You can monitor operational effectiveness at several levels using KPIs.You can monitor the following e-commerce KPIs to assist you in achieving your online business objectives:
1. Conversion rate
Your conversion rate, which reveals how many of your website visitors become customers, is one of the most significant e-commerce KPIs. You can use the percentage that results from this to decide what to do next. By making improvements to your website or providing promotions to your visitors, you can increase your conversion rate.
2. Bounce rate
The correlation between the volume of visitors to your site and the volume of bounces that occur over the same time period is known as your bounce rate. When a visitor comes to your website but doesn’t do anything else on the page that is known as a bounce. This metric can provide information about your website’s quality, such as whether or not users enjoy the services it provides. Examine a number of variables, such as SEO strategies, pertinent and quality content, eye-catching designs, and user-friendly navigational options, to lower bounce rate.
3. Customer retention rate
Customer retention rate (CRR), often known as your repeat customer rate reveals how well your company attracts and retains customers over time. CRR is crucial because firms can save money by keeping customers instead of spending money on marketing initiatives aimed at acquiring new ones. Businesses can use it to determine which of their goods or services are functioning well and which ones need improvement.
4. Customer acquisition cost
The customer acquisition cost (CAC) ratio compares the price you pay for website traffic to the cost of acquiring new customers. It also takes into account the number of existing customers.This data might help you decide if the people you’re marketing to are the right ones for your items.You can raise overall profitability by maintaining an ideal customer acquisition cost.
5. Customer support rate
For a variety of reasons, customers contact customer service before making a purchase. Their comments might help you enhance and change your online retail operations.As customers who are satisfied with their experience are more likely to make repeat purchases and suggest you to others, understanding customer support rates can also help you design tactics to increase your customer retention rate.
6. Return & Refund rate
To find out why customers cancel, return, or swap products, businesses track refund and return rates as well as the reasons behind the request. Customers may be more inclined to return an item for a refund if it doesn’t work for them as they may not be able to try it before making an online purchase. Monitoring this indicator makes it easier to decide where to alter or modify items, enhance online assistance, or create fresh approaches to boost the customer experience.
7. Subscription rate
If you offer your product via a subscription service, keeping an eye on your membership rate is a simple method to determine whether your company has expanded. If you find that consumers have cancelled their subscriptions, you can leverage their feedback through exit surveys or take into account any recent product modifications you made to alter subscription rates. This statistic can also be used to examine and enhance existing subscription-growth initiatives.