Five Crucial Online Store Metrics and How to Improve Them

How do you learn more about customers, their website behavior, and your marketing success? Just as you wouldn’t drive with your eyes closed, you can’t manage your website without proper data, namely, the online store metrics.

Does your online store convert visitors? If not, do you need to speed up your eCommerce site, or is any other solution necessary? For example, a Magneto store owner can decrease the site’s bounce rate by enhancing Magento search results relevance. The same applies to other CMSs. Your task is to know what to improve using the online store metrics.

If you locate the problem on time, you can stop visitors from leaving the store or convert them even at a dead end. So what should you measure and improve? Read this post to find out about the five most critical metrics and how to enhance them.

Five Crucial Metrics Online Merchants Should Monitor

1. Website Traffic (the Number of Visitors)

Let’s start with the most apparent sign of a successful online store. I’m referring to website traffic. To put it another way, it’s the total number of visitors to the site over a given period. Marketers can monitor traffic growth or drop over a week, month, or year.

This indicator speaks for itself. The more people come to your eCommerce site, the more potential customers you have. But it’s not so straightforward. These people should be interested in your services and products, or your efforts in attracting them would go to waste.

What if your online store has few visitors or traffic is continuously falling? Pay attention to other indicators we’ll cover in this article. Note that the stores’ traffic varies depending on their size, assortment, and season.

What Is The Purpose of Traffic Measurement?

You need it to keep track of how the number of visitors fluctuates in response to specific actions. Have you launched a new ad campaign? Look whether it brought traffic. Compare data to your competitors by selecting a few online stores with similar product offerings and stages of development.

Tools to Track the Number of Visitors to Your Website

Solutions to measure an online store website traffic include:

  • Google Analytics;
  • SEMrush;
  • SimilarWeb;
  • and other similar services.

They provide statistics on how people find you, which channels bring in the most traffic, the dynamics, and much more.

Seven Recommendations to Increase the Number of Website Visitors

  1. Hold promotions and contests to offer prizes to your customers for their activity.
  2. Employ contextual advertising to appear higher on search (“Ad” search results appear at the top of the list).
  3. Don’t neglect targeted ads to attract visitors who spent some time on your website but left without a purchase (i.e., users will be “followed around” by your ad banners as they browse other websites).
  4. Track SEO promotion. Optimize the website to appear higher on search without paying for contextual ads. This way, you’ll ensure a consistent influx of organic visitors.
  5. Sustain the company’s social media networks (Facebook, Instagram, LinkedIn, Pinterest, Twitter, etc.).

Here is how Maurices interacts with its community on Instagram. The company suggests sending them your name and matching it with one of their pair of jeans. Maurices attaches a link to these Stories to direct you to the product page.

Screenshot taken on the official Maurices Instagram account

  1. Collaborate with influencers. People trust the opinions of influencers and are ready to buy based on what they promote, especially if the blogger provides an additional discount.
  2. Activate email marketing to advertise your new arrivals,introduce promotions, or showcase product reviews.

2. Conversion Rate

Conversion rate compares the number of fulfilled actions to the total number of website visitors or impressions within the same period. It’s a sign of how efficient and profitable your store is.

Maximizing the conversion rate means increasing the number of performed actions, such as filling out forms or subscribing to your services.

Eight Tips to Increase Your Site’s Conversion

  1. Segment your audience and offer products that are most appropriate for each group;
  2. Leverage upselling and cross-selling to existing customers;
  3. Improve the site’s navigation;
  4. Provide a feedback section and streamline the reviewing process;
  5. Ensure instant support with chatbots;
  6. Use interactive components (buttons, widgets) and a sense of urgency;

Look how Fila motivates to shop with the help of this prominent heading and strong calls to action.

Screenshot taken on the official Fila website

  1. Encourage visitors to keep communicating by offering promotions and subscriptions;
  2. Make your website mobile-friendly.

3. Bounce Rate

The bounce rate is one of the eCommerce indicators denoting visitors who landed on a page and then left without taking any action.

What can the bounce rate mean? Marketers measure this metric to determine how many users closed the site immediately after clicking on a link.

A high bounce rate may feel discouraging. Why don’t your visitors stay on the site? It signals whether you should reassess website performance, product descriptions, design, or eliminate unwanted pop-ups.

Another reason is quite positive. A customer may visit a page to obtain information (such as a phone number or email address) and then continue their relationship with the store outside of the site. In addition, the bounce rate shows where the visitor left the sales funnel.

How Do You Calculate Bounce Rate?

Google Analytics reveals pages where the store loses the most clients. Take this information into account to make changes to the site.

Screenshot from Google Analytics official YouTube channel

Six Tips to Lower Your Site’s Bounce Rate

  1. Increase site load speed.The slower your website loads, the higher the risk of bounce. According to Google, a mobile user is 123% likelier to bounce as page load time grows from one second to ten seconds.
  2. Reduce pop-ups, show them after the user has spent some time on the page, and employ exit-intent pop-ups.
  3. Improve mobile friendliness and navigation to lead a visitor to a product or checkout page efficiently.
  4. Check the readability of the texts and update the design. If a visitor has to make an effort browsing through the wall of plain text, they will either miss some critical points or stop reading at all.
  5. Add internal site search. The on-site search bar helps to locate the desired product using keywords. Give hints with an autocomplete function and show all the key product details in the fast search results.
  6. Use a 404 page to redirect clients back to the funnel (add links to popular categories and products, a search bar, your contact information).

The screenshot from the Patagonia website shows an example of such a page. They use their informal brand voice to say the page doesn’t exist and provide various opportunities to come back to shopping:

  • website categories;
  • search functionality;
  • a shopping bag.

Below is the “Need Help?” section and the box to leave your email address to receive exclusive offers, etc.

Screenshot taken on the official Patagonia website

4. Customer Acquisition Cost

Сustomer acquisition cost (CAC) is known as the expense of acquiring a new customer. This metric can show you the efficacy of each marketing channel separately.

Why Do You Need to Calculate Customer Acquisition Costs?

Customer acquisition cost provides insights into which channel brings in the most clients. Leverage this information to adjust your promotion plan according to the price and return on investment.

You can decide which alternatives to reject or invest in more. As a result, you may reduce expenditures and make the most of your advertising campaigns.

Let’s imagine you’re trying to attract customers through email marketing, targeted social media ads, and outdoor banners.

Suppose you added 32 new customers last month. Fourteen people purchased an item after seeing it in your newsletter, eleven converted via social media ads, and seven people spotted your street advertisement.

You allocated $2,000 to email marketing. The targeted ad budget was $3,120, while outdoor advertising cost $6,800.

According to this data, newsletters are the most effective channel because it brings you more clients for less money, while outdoor advertising is probably worth cutting off.

Сustomer Acquisition Cost (CAC) Calculation

Ways of Keeping Customer Acquisition Costs Under Control

  1. Cater to the right audiences that need your product or service;
  2. Retarget customers to persuade them to purchase;
  3. Deploy a CRM to automate everyday tasks.
  4. Improve customer retention by building loyalty and a sense of belonging, like Soko Glam does in the screenshot below;

Screenshot from the official Soko Glam Instagram account

5. Average Order Value

Average order value (AOV) measures how much money a consumer spends on average on each purchase. The greater this indicator is, the more money an online store earns.

Average Order Value Formula

Let’s imagine your online store made $21,000 in sales in September from 100 orders. Divide $21,000 by 100. $210 is your monthly AOV for September. You can measure AOV for any period, but most organizations focus on the monthly average.

A Few Suggestions for Raising Your Average Check:

  1. Recommendation-based cross-selling. Many online stores add a feature on their home, product, or checkout pages to advertise related products. You can spot these sections titled “You may also like” or “We Recommend.”

It helps you sell expensive products or offer a complimentary item, even if a customer wasn’t going to buy it. It pops up at the right time and increases the average check. Check out how the 24s store employs it on their website.

Screenshot taken on the official 24s website

  1. Items that work well together. Offer the buyer to order two things at once at a more favorable price than separately. For example, it may be a laptop plus a bag. Make them cheaper when purchased together. Such an offer encourages people to buy more and assists in selling less popular goods.

  2. Allow free shipping when an order reaches a certain threshold. Free shipping is a fantastic bonus for customers to spend a particular amount of money.

Suppose most of your transactions are about $40. You may offer free delivery on orders over $65. The idea is to make free delivery accessible while increasing overall revenue. If you set the threshold too high, you run the risk of abandoned carts.

  1. A discount on a minimum order value. It resembles the free shipping option. Customers should be able to afford to pay a certain price to get a deal.

  2. Create a loyalty program for your customers. Consider implementing a reward or loyalty program if your store sells consumable products, such as laundry detergent or shampoo. For example, shoppers can earn points for every $5 they spend. A customer loyalty program is a retention technique helping to develop ties with customers and encourage them to return.

Conclusion

Here are five crucial online store indicators to consider. They include website traffic, conversion rate, bounce rate, customer acquisition cost, and average order value. However, you shouldn’t limit yourself to these metrics nor measure them in isolation. They complement each other and demonstrate how your eCommerce business progresses and what needs improvement.

Detect what suffers on the website in real-time. Make online store metrics your allies in this task. Your flaws will have a direct impact on the company’s future. The sooner you optimize the store, the more profit it will bring and the more clients you’ll retain.

Author

Kate Parish

Kate Parish is the CMO of Onilab, a full-service Magento development agency. She has more than eight years of experience in eCommerce Digital Marketing. Kate always aspires to broaden her competency in line with global trends. Kate’s strengths are SEO, branding, SMM, Magento PWA development, and online retail in general.

Leave a Comment