Do you know roughly the calculation of online stores at present? More than a million.
The digital era is evolving rapidly. Online shopping is becoming the norm and culture. There are various reasons for it. Therefore, a few metrics are significant to measure on your ecommerce website.
Eight Metrics To Measure on Your Ecommerce Website:
Here are eight important ecommerce website metrics to evaluate:
1- Net Promoter Score:
Customer satisfaction is the priority. Net Promoter Score Promoter (NPS) is the metric indicator to measure on your ecommerce website. It tells about how happy your customers are also If they recommend your business in their social circle.
Below mentioned are the categories of the customers to understand what they are telling about your business:
There are different tools that show the results by surveying and identifying the customers’ problems. Once you can detect, try to apply those strategies that help gain their trust.
Different experts offer discounts and other rewards to build a better connection with the customers.
2- Customer Retention Rate:
Customer Retention Rate (CRR) is the way to explain how much your business is able to retain potential customers. It is difficult to bring new customers rather than to solve issues of the existing ones.
By identifying the reasons for not building a strong relationship with the help of CRR metrics. This becomes easy to work on the strategy that improves the overall business.
3- Sales Conversion Rate:
It is one of the important ecommerce website metrics. A business is nothing without sales. This explains how many visitors are converting into a buyer. There is a proper calculation method.
Here it is:
A total number of sales / Total number of visitors.
It is helping a lot of digital marketers to calculate the exact ratio of customers and sales. This is good for knowing which campaign will be more effective in the future to boost the sales conversion rate.
4- Average Order Value:
AOV indicates the average monetary value of each purchase. This way, you can find out which source generates more traffic on the website.
Therefore, an ecommerce website design company emphasizes making things better. Once you know which product is less converting and which is more. It is possible to increase its value and have customer attention by offering loyalty points, free shipping, or buy one get one free.
5- Bounce Rate:
It is a kind of rate that shows how quickly customers switch to another website. Also, you can say the bounce rate is similar to the cart abandonment rate.
The high rate indicates that there are many things going wrong with users’ experience. Maybe the customers face difficulty with the website related to navigation, searching the product, or payment methods.
Knowing the exact reasons makes it more convenient to implement the right ways to reduce the bouncing rate on the website.
6- Customer Lifetime Value (CLTV)
Customer lifetime value shows which customers are likely to engage and satisfied with your brand. The high CLTV rate confirms how much average time customers spend on the website. Also, if they are going to make a purchase in the future as well, this metric is important to measure on your ecommerce website.
There are two types of customer lifetime value:
1- Historical CLTV: “Average order value x Average number of purchases made over the past one year.”
Use this formula to know the historical customer lifetime value.
2- Predictive CLTV: Average order value x Purchase frequency / Average customer lifetime.
Use this formula to know the predictive customer lifetime value.
It sounds easy and convenient to buy and sell things online. In reality, keeping a check and balance is a proper task.