Conversion metrics: the 6 most important for an e-commerce
To succeed with your e-commerce and stand out from the competition, in addition to offering good products or having a site with good navigability, you must always check the conversion metrics that your platform has to offer. In general, we can say that the metrics are all the results (which may be numeric or not) that your company presents.
Studying this data is one of several possibilities offered by digital marketing that verifies user behavior online and also, thanks to this monitoring, allows the application of strategies more appropriate to your audience. In addition, with them, it is possible to have a more realistic notion of ROI, which is the return on investment in marketing.
Thinking of such relevance, in this article, we will present six of the key conversion metrics that are critical to having successful e-commerce. Are you ready? Come on!
1. Customer acquisition cost
Customer acquisition cost, or CAC, is a metric that reveals the sum of all the invested resources for customers to find your online store, divided by the number of customers that actually arrive. With this, the lower this value, the better your strategy of attracting customers is.
However, for the values to make sense and really demonstrate whether the strategy has worked or not, it is necessary that those in charge of management have recorded all the expenses with advertising and marketing actions. If this is not done, the values may not be real and thus convey the team's mistaken sense of success.
That way, for the value of CAC to be true to reality, the idea is to gather all the expenses with paid media, AdWords, email marketing, social network drives or other actions with the goal of attracting customers. Once this is done, make sure that if your costs are higher than the average user's consumption, this information demonstrates that your online store may be having losses and that you need to review the strategy.
It is worth pointing out that one of the advantages of this metric is knowing what the cash value should be invested to acquire the clients and achieve the goals.
2. Conversion rate
The conversion rate is a metric that indicates the index of how many visitors to your site performed actions during the visit, either by registering for the email, becoming a lead or actually making a purchase.
The value of the conversion rate can be obtained from the following formula: (number of visitors who perform some action/number of total visitors) x 100.
Using this expression, you may find that if your conversion rate is a low number, it's a sign that people are not meeting your goal for them: to buy. On the other hand, if your conversion rate is high, it is a sign that users are feeling attracted to the content and the products offered.
In general, the low conversion rate may be related to the lack of structure of the site, difficulty in payment, description of insufficient products, expensive freight among other factors that deserve to be studied.
3. Bounce rate
Another rate that deserves enough attention is the bounce rate. Unlike the number of conversions, this metric reflects the number of customers who made a single purchase and did not repeat the action.
This amount can be measured from the sum of the total customers minus the number of customers who repeat the purchase. If the value of the difference is too high it means that it is time to think about ways to retain customers. A good way to keep customers close is to use email marketing, offer exclusive discounts or carry out actions on commemorative dates, such as an anniversary.
4. Abandoned Cart
Another key conversion metric to evaluate your store strategies is to understand the reasons that drive people to abandon shopping in the cart. Often when there is no purchase finalization during this step, there may have been a problem during the payment run.
This index can be measured as follows: (number of people placing a product in the cart/number of people who make the purchase) X 100.
It is important to note this behavior since, if a person adds a product to the cart, it means that they have some intention of buying it. When this operation is not completed, one must understand what the reasons were and think of ways to avoid this problem.
5. Average ticket
Basically, the average ticket refers to the average value a customer spends on virtual commerce. From this number, you can identify the number of customers needed to reach the sales goal within a certain time period (usually monthly). It is also possible to know if the amount spent by these people is greater than your investment, which means profit.
The value of this metric can be obtained by the following calculation: the sum of the total value in cash sales/number of sales made.
It is important to note that this metric varies according to the type of product marketed by the store and, from it, it is also possible to outline the best strategies to achieve its goal.
6. Number of visitors
Finally, the number of visitors indicates the potential that your e-commerce has to increase sales. For this data to become a conversion metric, you need to monitor traffic and understand what the problems of those potential customers are. Understanding the number of visitors is also important to check which outreach strategies best fit your goals.
As we've seen, knowing conversion metrics is imperative to better understand your customers through digital marketing strategies. With this, surely your e-commerce will achieve the best result and, consequently, generate the expected profit.
So, did you already know these metrics? If you want to know a little more about it, read our article on how much it can cost a bug in your virtual store!