When you talk about ecommerce, you think of business opportunities that allow people to buy and sell goods online. However, most entrepreneurs do not realize the importance of these metrics in terms of improving business operations. Without these vital figures, there will be no way of knowing where you are now, nor how you are progressing. Hence, it is advisable for you to know what these things are, and how you can use them to your advantage. Here are some of the essential metrics you should be tracking on a regular basis.
Cost – The cost of running your business is one of the most important aspects you need to track. This figure tells you how much profit or loss you have incurred in a certain period of time. It may seem like an extremely simplistic figure, but if you want to get a clear picture of your business’s profitability, you have to take into account the different costs of doing business such as overhead, rent and mortgage interest. Without these, the profitability will be hard to determine.
Income – This is probably the most important element you need to keep track of. It tells you how much money your business is earning and how much you are spending. If your business is not generating enough money, you need to make adjustments on the side. This also tells you if your sales are on the right track or not. If they are not, you may need to revamp the marketing strategies or come up with new ideas to draw more customers.
Visitors – this number refers to people who visit your site. It also includes those who browse or search for products online. Hence, the number of visitors is one of the most vital statistics you need to track because this is the number that gives you a direct insight into the level of your business’s popularity. Aside from the popularity, it is also a good indicator of the effectiveness of your website’s SEO (search engine optimization) efforts.
Number of active customers – this number also goes by the name “active customer.” Basically, it is the number of customers that have visited your site in a given period of time. This is a good gauge of the number of returning customers as well. If your customers that come back tend to be repeat customers, then the chances of getting repeat sales from them are high. Hence, it helps you determine the profitability of your business.
Number of total visitors – this number portrays the amount of activity your website gets from the public. It is one of the most important metrics because the more the traffic you get, the higher the chances of sales. Hence, it is important to monitor the traffic that comes to your site. Keep track of the trends in terms of the number of web pages downloaded each time, the most popular download dates and the most important search terms that users often use to find your business online.
Number of conversions – this one shows you the number of purchases that have been made. Usually, businesses will expect that once a buyer has purchased something online, he will visit the business’s main website. However, it is often found that many of these purchases are actually made at the shopping carts or the links provided by third-party merchants. Therefore, it is necessary to measure the conversion rate, so that you can always ensure that you have proper conversion numbers.
These are just some of the most important ecommerce metrics you should be tracking. There are more, as mentioned earlier. In fact, there are certain other metrics such as the average time on the website, the page-length, the click-through rate, the sales per impression, cost per action and the conversion rate that are equally important ecommerce metrics. By monitoring all these key metrics, you will always know how well your business is doing, and you can use this data in order to make the necessary changes.