E-commerce metrics are the key performance indicators (KPIs) that measure the success of your online store. By tracking these metrics, you can get a better understanding of how your customers are interacting with your website and how you can improve your sales and conversions.
Why are e-commerce metrics important for startups?
As a startup, you're constantly looking for ways to improve your business. E-commerce metrics can help you do just that. By tracking the right metrics, you can identify areas where you can improve your website, your marketing, and your customer experience.
For example, if you see that your sales conversion rate is low, you might want to optimize your product pages or your checkout process. Or, if you see that your average order value is low, you might want to offer discounts or promotions to encourage customers to spend more.
Key e-commerce metrics for startups
There are a number of e-commerce metrics that you can track, but some of the most important ones for startups include:
- Sales conversion rate: This metric measures the percentage of visitors to your website who make a purchase. A high sales conversion rate means that you're converting more visitors into customers, which is essential for growing your business. A good sales conversion rate for a startup is around 2% to 5%. For example, if you have 1000 visitors to your website in a month, you would want to see at least 20 to 50 of them make a purchase.
- Average order value (AOV): This metric measures the average amount of money that customers spend each time they make a purchase. A high AOV means that your customers are spending more money on each purchase, which can help you increase your revenue. A good AOV for a startup is around 2000 INR. For example, if you have 100 orders in a month, you would want to see an average order value of at least 2000 INR
- Customer lifetime value (CLTV): This metric measures the total amount of money that a customer is expected to spend with your business over their lifetime. A high CLTV means that your customers are returning to your website and making repeat purchases, which can help you build a sustainable business. A good CLTV for a startup is around 10000 INR. For example, if you have a customer who makes 5 purchases over the course of a year, you would want to see an average CLTV of at least 10000 INR.
- Customer acquisition cost (CAC): This metric measures the average amount of money that you spend to acquire a new customer. A low CAC means that you're spending less money to acquire new customers, which can help you improve your profitability. A good CAC for a startup is around 500 INR. For example, if you spend 2500 INR on marketing to acquire a new customer, you would want to see an average CAC of at least 500 INR.
- Shopping cart abandonment rate: This metric measures the percentage of customers who add products to their shopping cart but then leave your website without making a purchase. A high shopping cart abandonment rate means that you're losing out on potential sales, which is something you want to avoid. A good shopping cart abandonment rate for a startup is around 10%. For example, if you have 1000 visitors to your website who add products to their shopping cart, you would want to see no more than 100 of them abandon their cart without making a purchase.
- Return customer rate: This metric measures the percentage of customers who make repeat purchases from your website. A high return customer rate means that your customers are satisfied with your products and services, which is a good indicator of future success. A good return customer rate for a startup is around 25%. For example, if you have 100 customers, you would want to see at least 25 of them make repeat purchases from your website.
- Bounce rate: This metric measures the percentage of visitors who leave your website after viewing only one page. A high bounce rate means that your website is not engaging visitors, which is something you want to address. A good bounce rate for a startup is around 50%. For example, if you have 1000 visitors to your website, you would want to see no more than 500 of them leave your website after viewing only one page.
- Net promoter score (NPS): This metric measures how likely your customers are to recommend your business to others. A high NPS means that your customers are satisfied with your business, which is a good indicator of future success. A good NPS for a startup is around 70. For example, if you ask 100 of your customers to rate your business on a scale of 0 to 10, you would want to see at least 70 of them give you a score of 9 or 10.
How to track e-commerce metrics
There are a number of ways to track e-commerce metrics. One way is to use a web analytics platform like Google Analytics. Google Analytics provides a wealth of information about your website traffic, including the number of visitors, the pages they view, and the actions they take.
Another way to track e-commerce metrics is to use a third-party analytics platform like Shopify Analytics. Shopify Analytics provides more detailed information about your sales and conversions, such as the number of orders, the average order value, and the customer lifetime value.
Conclusion
E-commerce metrics can be a valuable tool for startups. By tracking the right metrics, you can get a better understanding of how your business is performing and make informed decisions that will help you grow your business.
Here are some additional tips for startups on how to track e-commerce metrics:
- Set realistic goals. Don't try to track every metric under the sun. Start with a few key metrics that you think are most important to your business and focus on tracking those for now.
- Track your metrics over time. Don't just look at your metrics once and then forget about them. Track them on a regular basis so you can see how your business is performing and make necessary adjustments.
- Use your metrics to make decisions. Don't just track your metrics for the sake of tracking them. Use them to make informed decisions about your business. For example, if you see that your shopping cart abandonment rate is high, you might want to offer free shipping or a discount to customers who complete their purchase.
FAQ's on e-commerce metrics
What are the most important e-commerce metrics for startups?
The most important e-commerce metrics for startups are:
- Sales conversion rate: The percentage of visitors to your website who make a purchase.
- Average order value (AOV): The average amount of money that customers spend each time they make a purchase.
- Customer lifetime value (CLTV): The total amount of money that a customer is expected to spend with your business over their lifetime.
- Customer acquisition cost (CAC): The average amount of money that you spend to acquire a new customer.
- Shopping cart abandonment rate: The percentage of customers who add products to their shopping cart but then leave your website without making a purchase.
- Return customer rate: The percentage of customers who make repeat purchases from your website.
- Bounce rate: The percentage of visitors who leave your website after viewing only one page.
- Net promoter score (NPS): How likely your customers are to recommend your business to others.
How can I track e-commerce metrics?
You can track e-commerce metrics using a web analytics platform like Google Analytics or Shopify Analytics.
How can I use e-commerce metrics to improve my business?
By tracking the right metrics, you can get a better understanding of how your business is performing and make informed decisions that will help you grow your business.
Here are some additional tips for startups on how to use e-commerce metrics to improve their business:
- Set realistic goals. Don't try to track every metric under the sun. Start with a few key metrics that you think are most important to your business and focus on tracking those for now.
- Track your metrics over time. Don't just look at your metrics once and then forget about them. Track them on a regular basis so you can see how your business is performing and make necessary adjustments.
- Use your metrics to make decisions. Don't just track your metrics for the sake of tracking them. Use them to make informed decisions about your business. For example, if you see that your shopping cart abandonment rate is high, you might want to offer free shipping or a discount to customers who complete their purchase.
Are you a startup looking to improve your e-commerce business?
Jordensky can help you track and improve your e-commerce metrics so you can make informed decisions that will help you grow your business. We offer a variety of services, including:
- Accounting: We can help you with your bookkeeping, tax preparation, and financial reporting.
- Taxes: We can help you file your taxes accurately and on time.
- MIS: We can help you track your e-commerce metrics and make informed decisions about your business.
Contact us today to learn more about how we can help you grow your e-commerce business.
Visit our website at https://www.jordensky.com/ or call us at 8369824291
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