4 Essential Metrics Every eCommerce Entrepreneur Needs To Track
Data is essential for any business.
If you don’t have accurate data, you won’t be able to draw unbiased conclusions on the state of your company and make good decisions. And eCommerce businesses are no exceptions!
So in this blog post, we’ll be going through the four essential metrics that every entrepreneur needs to track so they can stay profitable. If that sounds interesting, then keep on reading.
#1 – Conversion Rate
That is probably the most important metric of them all. That will show you how well your sales funnel works. Most businesses have a conversion rate between 3-5%. So if it’s lower than that, then there might be some problems with your sales strategy.
#2 – Checkout Abandonment Rate
One of the problems might be your checkout abandonment rate. If more than 50% of interested buyers leave your checkout, you should inspect why it doesn’t convert. There are many possible reasons:
Maybe the checkout process is too complicated?
Maybe the shipping costs are too high?
Whatever it is, solve the solution and see if your changes had any impact. If they did, then good job, but if they didn’t, you need to keep looking for problems.
#3 – Average Order Value
Next up is AOV (also known as average order value)! This metric is vital as it shows how much an average customer spends on your store per order. The bigger the number, the better.
That way, you can spend a bit more money to acquire a new customer!
#4 – Customer Lifetime Value
Another crucial statistic you need to track is your customer lifetime value. That shows how much an average client spends on your store. And the higher the number, the better it is.
So if you want to increase it, I highly suggest you get complimentary products that you can sell to them later. Remember, it is easier to sell to an existing client than a new one.
And those were the four essential statistics that every eCommerce entrepreneur needs to track. However, looking at the analytics can be pretty time-consuming, as you’ll have to check out different platforms.
So instead of wasting your precious hours, why not try out Funnel? With it, you can look at your statistics in one place. For more information about click the link here: https://funnel.io/!