Web Development

The 7 Key E-Commerce Metrics : Performance Analytics Made Simple

4 Mins read

Metrics are the key to analyzing your business’s performance. Without this crucial insight, businesses are rarely capable of optimizing vital metrics in their monthly performances. If you are looking to improve your sales revenue, consumer base, and level of market exposure, you will want to know the ins and outs of what is happening. Gaining information on the behavior of your customers is crucial in understanding how your business is doing. Therefore, it is essential to know the e-commerce metrics that make a difference.

If you are looking for advice on web design in the UAE or new strategies used in website development in Dubai, look no further. 

In this post, you will find a selection of the most important e-commerce metrics to consider. To facilitate your optimization process, we have also provided you with a few tips from our experts.


1. Sales Conversion Rate

If you are into E-commerce and investing in your page’s digital marketing, you will want to know one crucial piece of information. How many of your site’s visits actually lead to purchases? To reach this number, you will need to divide your number of sales by your number of visitors and multiply the result by 100 (#sales / #visitors x 100). 

The lower your conversion rate, the less effective your page or site is at convincing visitors to make a purchase. Optimizing your sales conversion rate involves actively causing an increase in the number of sales from the same customer pool. 

3 Tips To Optimize This Metric: 

  • Incorporating trust badges to show authoritative product endorsement and approval. 
  • Using customer reviews
  • Using high-resolution images 
  • Writing Product Reviews
  • Publish useful How-to videos and tutorials 

2. Traffic 

Whatever E-commerce platform you use, direct access to your traffic information is available. The higher the traffic to your page, the more sales you can expect to make. Once you have optimized your sales conversion rate, you will want to widen your customer span. 

3 Tips To Optimize This Metric: 

3. Customer Acquisition Cost

The less it costs you to run a business with a loyal customer base, the larger you can scale your operation. With an expanding enterprise, you can expect your customer base to increase steadily. Essentially, this means that the lower your acquisition cost, the more you can expect to make in sales. 

The customer acquisition cost is calculated by dividing the total sales/marketing expenses by the number of customers acquired by the business (#sales costs+marketing costs/number of customers). This number should be lowered by optimizing your inventory funding costs and decreasing your marketing costs. 

3 Tips To Optimize This Metric

  • Hire marketing consultants/freelancers to cut marketing costs 
  • Collaborate with a social media influencer for free marketing 
  • Encourage the sharing of links to your site or page to increase your visitor base

4. Average Order Value

How much are most visitors to your site spending on your products? A sound business strategy will need to establish how much the market leaders of your industry are making per customer. This will help you decide where you would like to position yourself in the market. In doing so, you should come up with an “ideal” per customer order value based on the prices of your product and awareness of market behavior. 

To calculate your average order value, divide your total sales revenue by your number of orders (#sales revenue / #orders). 

If your average order value is lower than you expected, you may want to optimize this metric. 

3 Tips To Optimize This Metric

  • Invest in marketing your high-value items
  • apply SEO to blog articles on your products
  • Offer flash sales and promotions quarterly 

5. % of Returning Customers

To build a solid customer base, you will need all your customers to be loyal to your brand and your products. The more your customers return to your page to purchase more products, the more satisfied they attest themselves. This is a fantastic metric to attract new investment, as well as structuring expansion. 

Most often, you will have to keep a database of customer information, including email communication, to track your returning customers. 

To calculate your returning customers percentage, divide your number of returning customers by your number of total customers and multiply the result by 100 (# returning customers / # total customers x 100). 

3 Tips To Optimize This Metric 

  • Offer exclusive deals to returning customers
  • Keep your current customers on a content-filled Newsletter 
  • Organize meet-ups and fun events/activities for customers. 

6. Net Promoter Score

For your E-commerce to be successful over time, you will need to have a base of customers that will promote your product and recommend it to their friends and family. This will lower your customer acquisition costs and increase your traffic without increasing your marketing budget. To measure this metric, you will need to provide your customers with a specific question: 

“On a scale of 0 to 10, how likely are you to recommend this company’s product or service to a friend or a colleague?”

People you can expect to promote your product will typically say either 9 or 10. Web tools like customer. guru or promoter.io will help you send this question to your customers automatically. 

3 Tips To Optimize This Metric:

  • Customer Service: ensure each sale has a personal touch, including a private warranty message
  • Ensure you keep your stock renewed
  • Facilitate the promotion of your business through shared links 

7. Shopping Cart Abandonment Rate

Many visitors may build a shopping cart on your page but eventually abandon it before check out. This may be a sign of high shipping costs or long processing periods. To calculate your shopping cart abandonment rate, divide your number of completed purchases by the number of shopping carts created (# completed purchases / # shopping carts created).

3 Tips To Optimize This Metric: 

  • Check-out discounts
  • Promotion codes (use social media influencers to promote your codes for maximum tactic efficacy)
  • Return discounts for “loyal customers.” 

Concluding Advice

The metrics listed above will provide you with an excellent assessment of your business’s overall performance. They will enable you to ascertain the sectors in which you need to improve, as well as areas where your current strategies are successful. However, this may require expertise most entrepreneurs, however skilled, may lack. This expertise in Web Design is essential to the development of successful e-commerce. 

Our team consists of the best professionals in web design in Abu Dhaband Dubai. Hire one of our skilled freelance web designers for quality web design at incredibly competitive pricing.

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