If you’re running an eCommerce business, or are thinking about starting one, it’s important to know which metrics to track. Here are 8 key numbers that will give you a good overview of how your business is doing.
Revenue is, of course, the first thing you should look at. This is the money coming in from sales of your products or services. It’s a good idea to track revenue on a regular basis (monthly, quarterly, etc.) to see how your business is growing.
2. Average Order Value
Average Order Value (AOV) is the average amount that each customer spends per order. This number can be affected by things like seasonal trends, changes in your product mix, or promotions. A high AOV is generally good, as it means that customers are spending more with each purchase
3. Conversion Rate
Conversion rate is the percentage of visitors to your site who take some desired action, such as making a purchase. A high conversion rate is indicative of a strong, effective website. There are a number of things that can impact conversion rate, such as site design, pricing, and product selection.
4. Customer Retention Rate
Conversion rate is the percentage of visitors to your site who make a purchase. This number can be a good indicator of how effective your marketing and sales efforts are. If your conversion rate is low, it may be worth investigating why that is, and whether there are ways to improve it.
5. Customer Lifetime Value
Customer Lifetime Value (CLV) is the total value of a customer to your business, over the course of their relationship with you. This number takes into account factors like how much they spend, how often they purchase, and how long they stay with you as a customer. Knowing your CLV can help you make decisions about marketing and product development.
6. Churn Rate
Churn rate is the percentage of customers who stop doing business with you over a given period of time. A high churn rate can be a sign that something is wrong with your product, your pricing, or your customer service. Keeping an eye on your churn rate can help you identify problems early on, and take steps to fix them.
7. Gross Margin
Gross margin is the difference between the revenue you make from a product or service, and the cost of goods sold. This number can be a good indicator of how profitable your business is. A high gross margin means that you’re making a lot of money on each sale, while a low gross margin means that you’re not making much profit.
8. Net Promoter Score
Net Promoter Score (NPS) is a measure of customer satisfaction. It’s based on the question “How likely are you to recommend our product or service to a friend or colleague?” A high NPS indicates that customers are happy with your product and are likely to promote it to others. A low NPS can be a sign that there are areas of improvement.
These are just a few of the important metrics that you should keep an eye on if you’re running an ecommerce business. By tracking these numbers, you’ll have a good overview of how your business is doing, and where there may be room for improvement.
Keeping an eye on key metrics is a vital part of running a successful ecommerce business. By tracking things like revenue, conversion rate, and customer satisfaction, you’ll be able to identify areas of strength and weakness, and make decisions accordingly. So don’t forget to keep an eye on the numbers!