8 Indicators that every ecommerce business should know, monitor and improve
Any ecommerce store owners and marketers should know and understand some basic indicators to monitor and evaluate his online business. These indicators should be monitored on a daily, weekly and monthly basis. When it comes to ecommerce, the indicators we generally monitor fall into two categories:
Sales AND Marketing.
Often measured by the number of sessions or number of users visiting at least one page of your website, store or landing page. Any store owner wants to see the traffic increase with time.
Tells you how many users exit your site or page after viewing only one page. If this number is high (80%), you will need to investigate why visitors are leaving your site instead of exploring it, you should aim at a bounce rate of max 50%.
Often the most important indicator for the success of your online sales. To calculate it, divide the ratio of total number of sales conversions by the total number of online visitors, it varies from one industry to another but generally ranges between 1.5% and 3.5% (fashion, for example, is between 1.5% to 2.5%, if you are getting 3% then you are leading the industry) you should aim at 2%.
Many business owners focus only on customer acquisition and forget to upsell on their existing customers; customer retention can also drive loyalty, word of mouth marketing, and higher-order values; you want to reach 20% to 30% of returning visitors to your store.
A very important that will tell you how many users are adding products to their shopping cart but not checking out. In case you have a high number of abandoned carts, you need to check on what is causing friction with your website visitors on the checkout.
who doesn’t know this :-) these are the total sales that your online shop.
This is the total sales divided by the total number of orders; use this indicator to plan and increase your online sales goals and help predict your future sales
how much your company spends on acquiring a new customer.
Here is a google sheet template that we use for our customers to track their store KPI and analytics, it will remind you to keep an eye if you are on the right track and will be an early warning sign to correct any mistakes.