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Top 5 E-Commerce Metrics You Must Track (2022)

Looking for ways to figure out if your business is on the right path? Read on to take advantage of how robust tracking and analysis of these e-commerce metrics can grow your business.

Web data can be daunting when all the numbers are shown in front of you. But tracking metrics is very important, and once you understand which metrics to track and how to interpret them, you can unlock valuable business insights. For example, you notice the average bounce rate of your products’ page is 85%, which is above your industry average. What if you manage to lower the bounce rate by 15%? This increases your website engagement, and can increase your end conversions and ultimately, profit margins.

The benefit of analyzing these metrics is that they enable you to optimize your goals and resolve problems by making data-driven improvements. Once you gain a solid understanding of critical e-commerce metrics, you can keep track on building sustainable growth for your online business.

Here are the top 5 metrics you should be tracking as an e-commerce business:

1. Conversion Rate

The most obvious metric! This is your North Star, which you should be tracking weekly, if not daily. Suppose your website has high site traffic – good job on getting your visitor's attention. However, it is another story to get them to take action. There are different conversion types, depending on your business goals. It ranges from placing an order to subscribing to your newsletter. When you get visitors to perform your desired actions, the visitor converts to a customer. Measuring conversion rate enables you to understand how effective your online efforts are, as you will have an idea of how many people are responding to them. Here’s how you can calculate conversion rate. Suppose 1000 visitors are visiting your website this week, and there are only 15 purchases made – this gives you a conversion rate of 1.5%.

2. Site Traffic

While it is crucial to keep track of the number of visitors coming to your site, it is also essential to know who they are by their age, gender, geographic location, etc. Tracking site traffic allows you to learn about your visitors and make informed business decisions.

For instance, to retain existing visitors, you can opt to enhance their user experience by referring to their demographic information. More visitors from India? Maybe you can highlight some of your Indian products on the Homepage. Other information like what device they are using, their age and interest categories, and whether a translation is necessary, can be used to improve your website’s user experience. Optimizing your site for these visitors increases your chance to turn them into customers.

3. Average Order Value (AOV)

Average Order Value represents the average amount of money customers spend when they purchase from your website. Higher the AOV, higher your profits. An increase in AOV can signal more profit and sales, whereas a drop in AOV means you should come up with new strategies to increase your basket size. Keeping track of AOV can help you evaluate the performance of your business and the website's effectiveness in assisting your visitors find what they need. 

4. Shopping Cart Abandonment Rate

Let’s say you have made an easy-to-navigate, attractive website. But you don’t see many sales going through. In this situation, you should check your shopping cart abandonment rate.  

Looking into the shopping cart abandonment rate can help you pinpoint why your visitors abandoned their shopping carts by locating where they bounced in the sales funnel. It could be because of high shipping fees, or it takes too much time to enter shipping information. Correct adjustments can help you recover those lost sales and reduce the cart abandonment rate.

5. Bounce Rate

Bounce rate evaluates your website’s visit quality by measuring the number of visitors leaving your website without performing specific actions, such as completing a purchase, or signing up for email updates. Although average bounce rate differs across industries, generally if your bounce rate is above 70%, your website may require further modifications to improve users’ experience. Lowering your bounce rate can improve your engagement with visitors, thus increasing chances of building a better relationship and converting them into customers. Understanding web metrics, especially the ones mentioned above, can drive your business towards success. Let’s gear up with these five metrics and start optimizing today! On a related note, CL1CK helps you keep an active track of your most important e-commerce metrics within minutes with our super-easy-to-navigate dashboard.

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