Conversion rate

As an ecommerce business, your conversion rate is one of the most important metrics to track. It tells you the percentage of website visitors who make a purchase out of the total number of sessions. This metric is important for efficient product/purchase mapping and online chat.

Average order value

Average order value tells you the average amount of money that customers spend per order on your website. This metric is very important, and it can be improved without increasing the number of active marketing actions, just by changing scripts for call center agents, holding seasonal promotions, giving birthday discounts, etc.

Churn rate

Churn rate measures the percentage of customers who stop buying at your website over a period of time. High churn rate can be related to poor customer service or the fact that it’s very difficult to place an order on your website.

Customer acquisition costs

Customer acquisition costs tell you how much it costs, on average, to get a new customer. This metric is important to effectively invest in marketing campaigns. You can manage your keyword strategy, optimize your website content, and build your reputation in online environment. This helps to increase your brand’s popularity and reduce dependence on various advertising campaigns, thus contributing to reduction of customer acquisition costs and increase of marketing efforts effectiveness.

Returning customer rate

Returning customer rate is the number of customers who have made more than one purchase from you. High retention rate indicates customer satisfaction and willingness to make repeat purchases.

These 5 metrics can be the basis for ensuring profitability of your ecommerce website.

Source: telegra.ph