What’s the secret to success in the wide and wonderful world of ecommerce selling and fulfillment? Is it having amazing products that wow a large audience, stimulating customer demand? Is it a flashy, eye-catching website that consistently lands on the first page of the Google search results for your industry? Is it a marketing campaign that generates clicks like there’s no tomorrow? All of these things certainly won’t hurt, but they’re not the most important thing you need to keep an eye on.
No. The most important thing, the key to your future success, is understanding the importance of metrics in business. Information is king, and your business sinks or swims on the collection and correct utilization of data. Not to toot our own horn, but P2Pseller offers a unique suite of data analysis software that helps you smash sales goals quarter after quarter as you grow your business. Here are five important ecommerce performance metrics that we think are important to keep an eye on as you scale your operations.
First up on our important ecommerce metrics to track is sales conversion. The number of people browsing your website will always be significantly higher than the percentage that actually makes a purchase, but if you can keep that number above two percent, you’re doing great already.
Another important website metric involves average order value. How much money are customers spending at your store at any given time? This is an especially key ecommerce metric because this can help you determine a minimum order value to qualify for free shipping. If you keep the floor for free shipping at a few dollars above your AOV, your customers are more likely to buy a little something extra just to save on delivery.
Third, shopping cart abandonment rate. Did you know the single most common reason for customers to abandon their shopping carts? With a landslide victory, too-high shipping fees are responsible. Seeing how many customers select items from your store only to back out at the last moment can be an incredibly valuable piece of information. You can even set up a system where a discount code is automatically provided if the cart is abandoned in an attempt to secure the sale.
Our second-to-last key ecommerce metric is a more positive one. We’re talking about the rate of returning customers. It can give you that much-needed boost of encouragement to see your percentage of returning customers climb upwards over time. It can help you know what you’re really doing right- or, if it happens to dip momentarily, let you know which aspects of your business you need to work on a little bit more.
Finally, round out your mastery of business development metrics by checking out your bounce rate. Your bounce rate is the number of people who arrived onto your site and immediately clicked off of it without taking any further action. If you can keep that down as low as possible, you’re doing wonderfully for yourself.
That concludes our list of the top five metrics for business development. Once an order is placed, we here at P2Pseller are proud to offer a number of other information-gathering tools. Order heatmaps, performance by region, and growth over time will never be a mystery ever again. Register a free account with us today to see the full measure of what we can do for you and your business. We’d be ecstatic to have you on board for the ecommerce revolution.