Keeping your e-commerce website’s performance is important because if you are to survive the online business industry you must know what you’re doing and have a comparison of your website’s metric over time.
Selling your products or services online and not keeping track of your website’s metrics is like walking in the dark and not seeing where you are going to. However, for those who are starting their e-commerce journey, it can be a challenge to understand how website metrics can help them become successful in the industry.
Having a solid background in website metrics can give you the insight to surpass the dilemmas of unpredictability. There are more stories that needed to be told above your e-commerce website’s clicks, bounces, visits, and conversions. A good example is having a small percentage of those who actually made a purchase on your website to the total visits you get on a daily, weekly, monthly, or yearly basis.
The difference between metrics and KPIs
There is a difference between metrics and KPIs (key performance indicators). KPIs are projected to measure your e-commerce website’s success. Once you’ve set your objectives and your key results, you need a method to measure its success and this is where KPIs come in. It lets you determine how you are doing against your objectives.
While metrics are simply just numbers, it is considered a quantitative measurement of data which describes the trends or events of your e-commerce website.
What is a website metrics?
This is also known as the “website statistics,” it is the collection, measurement, analysis, and reporting of data gathered using your website’s analytics. This will help you understand and optimize your website usage.
Here some of the important statistics from website metrics that you should keep in mind:
- Bounce Rate This is the percentage of visitors who leave your website after viewing a page on it. Having a high percentage of bounce rate means your e-commerce website is performing poorly. You must keep in mind to compare your landing pages to that of your pages with the highest bouncing rate.
- Conversion Rate This is the percentage of a page where your visitors have completed the desired action like filling up your form, adding products to their carts, and checking out the items for purchase. Pages with highest conversion rate mean it is performing excellently.
- Visitors This is the number of unique visitors who spent time on your website. It is also important to see the number of visitors ending up on your e-commerce website.
How to develop the right metrics and KPIs
The first thing you need to do is to establish your goals and objectives. Before measuring and analyzing your e-commerce website’s traffic, it is important that you state the purpose of your website. Then, you need to establish your CSF (critical success factors) from your goals and objectives. This is the limited number of important activities you and your team should be focusing on to come up with a successful e-commerce website. Finally, you have to establish your KPIs from your CSF. KPIs have calculated data that quantify your CSFs. It enables your measurement to determine your next step.
Now, metrics are the calculation of your measures. It is always expressed as average, percentage, rate, or ratio.
Pointers on how to interpret metrics and KPIs
1. Measuring your audience
This is one of the most important elements to consider interpreting your e-commerce website’s metrics and KPIs is measuring your visitors’ reach and impact. This is typically done using Google Analytics and other analytical tools available online. By doing this, you can determine if your visitors’ number is growing, it is also essential to have a mix of new and recurring visitors because this is a positive result and means that visitors are considering your products or services.
2. Analyzing your traffic sources
It is also crucial to determine where and how your visitors are getting to your e-commerce website. There are various places and ways such as through search engines, social media platforms, email marketing, or directory listing. The keywords used by your visitors are also important.
The importance of email marketing campaign
Email marketing is considered as one of the most essential channels in engaging with your visitors and audience who have previously expressed their interest in your products, services, and brand. You can directly reach out to them by sending them updates, promotions, and sales that would encourage them to revisit your e-commerce website.
The best about email marketing is that you already have a refined audience and customers who are willing to give you their emails because of the simple reason that they are interested in your products and services, and they trust your brand.
Email marketing also has the highest ROI out of all the marketing campaign channels and methods available to the e-commerce business owners. Not to mention you have the ownership over your email list which the other marketing methods don’t. There is good email service available online you can use such as MailChimp and Mad Mimi, these two have the metrics that you will need in their dashboards and you can also customize it too to your liking.
It is highly advised that you religiously gather, measure, analyze, and interpret the data you get from your website analytics and it is important to know the reasons why your visitors are visiting your e-commerce website, it tells you how they feel about your products, services or brand.
There will also be the difference for every e-commerce websites and the purpose of website metrics and KPIs to help you become knowledgeable about e-commerce analytics, then learn and make improvements to your websites from the data you will gather. A deeper understanding of your customers’ actions will help you become a successful e-commerce entrepreneur. Knowing this information will give you what it takes to make the right decisions and actions as you get your business going on the market.
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