It’s safe to assume that you want your online store to be a huge success… and why wouldn’t you?! Your business is a reflection of your greatest passion, your truest interest and what motivates you each day. And if it’s not, it should be! You put in all of those long hours to make sure that it’s a success so don’t forget the importance of measuring and monitoring your businesses key metrics. Whether you are just getting started, building and continuing to grow your online company or you’ve been around for a while, your businesses profitability is greatly determined by how closely you monitor and track the status of your site. In this article we will focus on the top three metrics to watch, analyze and optimize: conversion rate, shopping cart size and visitors.
First things first, let’s start with your conversion rates. Conversion rates are defined as the proportion of visitors to a website who take action to go beyond a casual content view or website visit, as a result of subtle or direct requests from marketers, advertisers, and content creators (Wikipedia). Mathematically (and monetarily) speaking, your conversion rate is the amount of revenue your site gets divided by the number of visitors. Make sense? Good!
Now let’s look at your sites conversion rate one other way. Your e-commerce site exists so that customers can buy things. And it’s imperative that you know what percent of your visitors are actually doing just that. This is why we look at conversion rate and, not to mention, because it is pretty easy to measure (daily… weekly… monthly) so you absolutely should!
Now that we have established what conversion rates are and why it’s important to monitor, we will look at the factor in your conversion rate that you can and should make every effort to impact, Visitors. Your Unique Visitors are individuals that are requesting pages from your website during a specific time period, regardless of the frequency.
We recommend looking at Unique Visitors when measuring because shopping online is often a dance that includes multiple sessions to and from your web site while comparing prices on other sites, asking advice from friends and family before purchasing etc. But in the end we want those visitors to buy and not only buy, but buy a lot! Which leads us to our next metric, cart size.
Your task is to maximize the number of items customers buy in a single transaction in order to boost your average profit. As part of your retention strategy your site should make every possible effort to beef up your customer’s shopping cart before and during check out.
There are a few simple tricks to do this that we recommend you implement. First, make sure that your cart clearly summarizes the items in it with clear product images that include accurate details so that the customer can differentiate what’s in their cart. With that being said, you want your customer to continuously add to their cart so make sure to heavily promote related items as the customer continues to shop. And finally, incentivize your customer even more by offering pricing deals (i.e., buy two get one free) when they look at their cart before checking out. Don’t miss out on the low hanging fruit!
The above metrics are ways that you can optimize your e-commerce sites earning potential. Of course there are hundreds of metrics to choose from and they all measure something of value but conversion rate, visitors and cart size are the three key metrics that will absolutely help your bottom line of achieving revenue growth.
Want to know additional information about these key business metrics and more? Contact us today at firstname.lastname@example.org.