It’s imperative that eCommerce store owners track their conversion rate metrics. Opportunities can be uncovered by sifting through Google Analytics reports and by having two-way conversations with customers. There is a a growing list of software and tools available to help measure, collect, analyse and test your most prized digital asset – your eCommerce website.

Data falls into two buckets; Quantitative and Qualitative data. In this article we explore Quantitative data. Hot metrics that every online store owner should be watching like a hawk. Common quantitative eCommerce specific metrics are; Conversions, Abandoned Carts, Average Order Value (AOV).  These metrics measure the performance of your online store and help you drive sales and conversions.

Its important to track more than just transactions. Driving sales is the primary goal of an eCommerce website. Below are some of the hottest CRO metrics to quantify how well your online store engages, converts and retains customers.

Engagement & Conversion Rate Metrics

Keeping a close eye on Bounce Rate, Conversions & Cart Abandonment rates help you monitor online store performance by limiting sales funnel leaks and optimising the user experience.

Bounce Rate

A bounce is when a shopper visits only one page and then leaves the online store without navigating further.

Calculation – Single page visit / Total number of visits to that page

Importance – Google takes into consideration your bounce rate among other things to determine your rank in SERPS. Landing pages need to correlate with the users searched terms or customers will bail and not click through to other pages in your store.

Benchmark – 36%

Google Analytics Report – ‘Bounce Rate By Page’

Tips to move the needle

  • Redesign and AB test your poor performing landing pages
  • Optimise keywords to better reflect your page content
  • Check the bounce rates of landing pages against the average site bounce rate to identify pages that will need immediate attention
  • Compare your bounce rate for specific traffic sources, dimensions and devices to drill down to areas of opportunity

Conversion Rate

Conversion rate is the percentage of your site’s visitors who perform the goal of the online store i.e make a purchase.

Calculation – Number of Sales / Number of Visits

Importance – The conversion rate is a representation of how well your online store is closing deals. Improving your conversion rate metric means your capitalising on your existing customers browsing your store. You are effectively lowering your cost-per-acquisition and you can always make improvements, boosting your bottom line.

Benchmark – 3%

Google Analytics Report – ‘Ecommerce Conversion Rate’

Tips to move the needle

  • Give shoppers greater information upfront to reduce friction across the sales funnel and allow them to make an informed purchase decision. ie detailed product descriptions, 360 degree view of the product, transparent warranties and return policies
  • Multiple payment and delivery options
  • Emotive copy that appeals to users’ desires
  • Create a sense of urgency with time critical offers or incentives

Abandoned Cart Rate

The percentage of purchases that are abandoned after a user added shopping items to their bag or cart.

Calculation – Total number of Abandoned Carts / Total number of Cart Transactions

Importance – Shoppers abandon their carts for many reasons e.g unexpected costs, not ready to purchase, not qualifying for free shipping and not wanting to create an account to name a few. Reducing the instances of cart abandonment have a direct influence on your conversion rate metrics and your store profitability.

Benchmark – 60%

Magento Report – Admin > Reports > Shopping Cart > Abandoned Carts

Tips to move the needle

  • Nurture your customers right the way through to purchase
  • Reduce pitfalls and moments of anxiety in the cart and checkout process
  • Make trust badges, multiple payment options and returns policies visible
  • Remove all escape routes, simplify the page layout and form fields
  • Offer free shipping wherever possible
  • Implement an Abandoned Cart email program as a safety net to win back some additional conversions

 

Marketing & Merchandising Metrics

At the coal front and pulse of your online store is optimising the product offering and merchandise.

Top Selling Products

The best selling products of your catalogue.

Calculation – Revenue By Product

Importance – By finding your top 10 selling products you can compare them against each other to determine what they have in common. Is it the price, the target market, promotions etc that is contributing to the high sales volume compared to the average per product?

Google Analytics Report – Product Revenue and Unique Purchases by Product

Tips to move the needle

  • Promote your best selling products on prime real estate areas of your online store front
  • Once you know why this products are your top sellers, make them more visible to potential clients and use this intel to optimise your other products across your catalogue

Average Order Value

Average amount in dollars a customer spends when they place an order in your store.

Calculation – Sum of Revenue Generated / Number of Orders

Importance – The higher the AOV means your making more profit per store customer.

Google Analytics Report – Average Order Value

Tips to move the needle

  • Understand your customers buying behavior and find ways of placing relevant products in front of them
  • Show users related products in the cart area
  • Offer up-sells to browsing customers
  • Suggest items in email marketing campaigns based on buyers’ buying/browsing history to increase your customers’ AOV
  • Offer bundled deals and offer free delivery on all orders over $X amount

Coupon Code Usage

Coupon code usage will let your know how many times a particular code was used, total amount of sales and discount given for each code.

Importance –  In the Magento admin area the merchant has the ability to create their own unique codes and stipulate their usage and discount amount. Shoppers are looking for a deal or a promotion that will push them to purchase with you over another competitor.

Magento Admin Report – Reports > Sales > Coupons

Tips to move the needle

  • Filtering by day and month, plus examining which discount types and amounts converted the best you can start to understand which coupons codes can more effectively move the conversion needle
  • By combining unique coupon codes generated in the Magento admin area with event-driven email marketing campaigns like customer reactivation, online store owners can leverage personalised and incentive based promotions

Keeping abreast of these eCommerce metrics should become a daily routine for merchants wanting to increase sales and profitability. Some other useful metric and reports to be across routinely are Returns per Product, Internal Search Terms report and some of the above mentioned metrics filtered by device, browser and traffic source.

We’ve made it easy for merchants to get started on these metrics if they haven’t already by creating a sharable eCommerce dashboard in Google Analytics.

Free metrics dashboard

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