Reading Ecommerce Analytics For Success
Key Metrics of eCommerce Analytics
Because it often involves a lot of metrics, eCommerce can be overwhelming. For this reason, most business owners make business decisions based on their gut feelings instead of using the available insights to implement data-driven decisions.
Meanwhile, there’s no reason why you have to take care of all your Customer Metrics at once. You can single out the most important metrics, and use them to achieve success in eCommerce Sales.
Here are the 5 Key Metrics of eCommerce Analytics that all eCommerce businesses must take note of:
- Discovery
- Acquisition
- Conversion
- Retention
- Advocacy
1) Discovery
In the Discovery stage, you create Awareness Ads for your business. Awareness Ads inform potential customers about the existence of your business. Successful Awareness Ads engage the buyer and emphasize the information that is most likely of interest to them.
Before running Awareness Ads you must first collect data about your customers. You can find data about your customer’s Location, Age, Gender, and Interests in your Analytics account. Use this data to build your user persona, to whom you will address your Awareness Ads.
Awareness Ads also help you take advantage of the following Social Media Metrics:
- Reach: This refers to the number of people who view an ad. This metric correlates closely with the number of Leads you get on your eCommerce Website. If your reach is high, chances are that many potential buyers will visit your Website.
- Impressions: This refers to the number of times people viewed your ad.
- Engagement: This refers to the number of Social Media users that engage with your content. Analyzing this Social Media Metric can help you determine where to focus your ad budget. If your reach on a particular Social Media platform often converts into engagement, you can increase your ad budget on the platform.
2) Acquisition
The second thing you have to do is measure the number of people who visit your Website and calculate the cost of acquiring these Leads. The money and time you’ve spent on your Awareness Ads are worthwhile if anyone who viewed them visited your eCommerce Website.
3) Conversion
After acquiring Leads to your Online Store, the next step is to convert them into paying customers. You may find that some people visited your Website but didn’t make a purchase. Also, some may click on a product in your store, and leave the site without making payment. You can use eCommerce Analytics to track such customers, and display ads that encourage them to buy your products.
4) Retention
After converting your Leads for the first time, you should do your best to retain them. Investing your time and money into Customer Retention will pay off in the long run. Besides, it’s always more expensive to acquire new customers than to retain existing ones.
5) Advocacy
If you provide quality services to your customers over an extended period, they may become advocates for your business. Your customers will fall in love with your company and share good feedback with their friends.
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