Your overall business performance is impacted by various factors. When you try to the see bigger picture, you will find countless factors and metrics that can define your business success. However, don’t be distracted by too many dot lines, and stay focused on what matters the most. When talking about growth metrics for ecommerce startups, there could be numerous. From the least important to the most important factors, the list could be comprehensive. You may end up thinking which one should I follow? This article will help you what growth metrics should you pay heed to. Keep reading to know!
7 Essential Growth Metrics for Ecommerce Startups:
Managing and assessing an online store is never easy. Collecting data and checking on the metrics are essential to see if things are going well. Growth metrics play a key role in shaping your ecommerce marketing strategy. Following are the metrics every ecommerce startup should pay attention to!
1. Cost per acquisition (CPA):
The first thing an ecommerce startup should focus on is customer acquisition cost. It is the amount of dollars spent to bring a new customer to the table. New companies often spend too much on marketing and sales campaigns to attract new leads. A higher CPA means a lower number of prospects/leads are converting.
It is an essential growth indicator that the management should not overlook. A higher CPA means the online store should control its spending and focus on user experience. Something might also be wrong with the products/services if CPA is high.
2. Average order value (AOV):
As a business owner, you should always keep an eye on your total sales generated from a particular number of orders. The ratio should be calculated for a specific time. The calculation is called average order value (AOV) when spoken of in ecommerce terms. How much do customers typically spend on an order from you?
The AOV is calculated by dividing total sales by the number of orders for a particular time. The metric plays a vital role in shaping the selling behavior of a startup online store.
3. Customer retention rate:
You must check your customer relationship strategy if you are losing more customers than acquiring them. Your ecommerce startup should have a healthy customer retention rate since it costs much less to retain them than to acquire them. You must keep them retained once you gain them.
Ecommerce startups are often far from understanding such metrics. The best way to do well on these fronts is to join hands with expert ecommerce solutions companies. The value of customer retention should not be underestimated since it correlates with customer satisfaction.
4. Onsite activity metrics:
Let us talk about technical actions now. Have you ever checked what visitors do after visiting your online store? How many pages do they open? For how long do they stay and navigate through your store? Answers to all these questions lie in checking onsite activities.
The best outcomes of checking these points are enhanced page loading speed, improved page usability, and optimization. You will know the gap between what your customers demand and what you offer, helping you to improve your strategies.
5. Cart abandonment rate:
You often have seen customers loading up a shopping cart and abandoning it just before finalizing the purchase. It hurts the ecommerce owners and there could be various reasons for it. Some of the common reasons are enlisted here.
- High shipping costs
- Payment security concerns
- No guest checkout options are available
- Unexpected additional fees
- Overall poorly structured user interface (UI)
- Poor user experience (UX)
Checking out the cart abandonment rate is an essential growth metric and can point out various problems. Ecommerce startups can wipe their site of the wrongdoings and enhance customer experience to reduce cart abandonment rate.
6. Bounce rate:
Calculating the bounce rate of an ecommerce website is another essential metric. It is the percentage of the visitors to your ecommerce site who bounce back or navigate away. A higher bounce rate can indicate several serious problems which must be solved immediately.
Expert ecommerce solutions companies always provide useful insights to solve issues like these. They tend to reduce your website bounce rate by paying close attention to the associated factors.
7. Conversion rate:
Many visitors might visit your site but not all of them will take actions you want them to take. Ecommerce businesses usually track some conversion rate metrics on site, but the value must be stressed.
Conversion rate ultimately relates to other growth metrics on an ecommerce site. It is necessary to calculate your conversion rate to see how your online store is performing.
Connect with expert ecommerce solutions providers for better results!
Your online store must be equipped with modern-day tools and strategies to generate positive results. With effective UI/UX and a higher conversion rate, you can do wonders with your online store. Consider connecting with expert ecommerce solutions Dubai providers for better results!