What are the basic ecommerce metrics?
Today, most people feel that opening an eCommerce store is pretty much as simple as a pancake. You select the right products, get a basic website done, set up the payment methods, and you’re done. Yes, the starting process looks simple but tough is to sustain the business. There is a lot of competition amongst all the products, earlier it was just Amazon, Flipkart, Alibaba but today there is a trillion of small and big ventures who are making their mark in the eCommerce industry. Talk about Fashion, you have myntra, nykaa, clovia, zivame, kosi, and whatnot. Small retail brands also have their own websites today and are running them so well.
To sustain any business, it is important to keep a keen watch on its numbers. Now the question is, there are so many little things to track than what should be regarded as important and whatnot. From tracking the traffic on websites to checking numbers on social media platforms, the list is apparently endless. It’s easy to fall into a love-hate relationship with metrics when you’re trying to grow your e-commerce store. You love that there’s a number for everything, and you can clearly see your progress on just about any variable—but you hate that you could spend a full week just pouring over data trying to make sense of it all. Let’s look at some of the key eCommerce parameters to analyze:
- Traffic on web/app: In the offline world, we measure the success of the store by the footfall it has. Similarly, in the e-commerce industry, we need to measure the traffic on the website or the application. The high-level overview of how many visitors you’re driving to your store in total is undeniably important, but there are key metrics hidden within your total traffic that can be even more useful for spotting opportunities for growth.
- Conversion rate: Receiving the apt footfall at the store is just not enough, more importantly, the people need to make a purchase that is what increases the sale. Similarly, we need to check the number of people who clicked on the products and made a purchase. Conversion rate optimization (CRO) is a discipline unto itself, and how you go about it depends on your industry, your customers, and your product.
- Checkout abandonment rate: The cart abandonment rate is the percentage of customers that add an item to the cart and then abandon the purchase. The number of items added to the cart, the value of items added to the cart, and how long they shop are all important as well. Once this metric is analyzed, then the right strategies could be figured out to convert the abandoned users to return users. This metric gives you insight into how many customers are interested in products but do not proceed to buy.
- Customer product reviews: Reviews on a product page can mean the difference between a purchase and an abandoned cart. Ratings and reviews on a product are very important as the buyers usually trust the opinions of their fellow customers and tend to make a purchase on the basis of that. asking customer reviews is a great way to get an unfiltered and honest picture of how customers view your products. The ability to respond to reviews also gives you a way to connect with customers directly and resolve their issues. More than that, it creates a great opportunity to produce marketing content centered around your “best-reviewed” products.
You might be wondering what would be the right set of tools to analyze these metrics. There are a couple of them like Google Analytics, Google search console through which you can even check the real-time performance of your website. As you grow more comfortable understanding your business through the lens of these metrics, you can take steps into more detailed, nuanced numbers as you need them.