You know that old saying in business — that what gets measured also gets managed? If you want to start New Year’s on a fresh foot, you need to think about the metrics you track to ensure that you scale your online store to the next level. Whether you want to take these metrics and scale your online store with print-on demand or simply in what areas you should add more money to your ad spending, you need to know what’s what.
But how exactly do you identify your KPIs—or key performance indicators—and what do they tell you about what you need to improve? Here are eight suggestions for actionable metrics you can track to better understand the growth of your online store — or lack thereof.
1. Conversion Rate
There may never be a time in the digital era when conversion rate doesn’t matter. In fact, it was identified as one of Shopify’s key KPIs for ecommerce. The logic here is simple: how many of the people who have a chance to click “order” actually do click order?
This is a simple question of how persuasive the overall messaging of store is. If you attract lots of customers but have few conversions to show for it, you need to work on your copy, your trust, your visuals — everything “on-page.”
If you plan to scale your online store with print on demand, your conversion rate will tell you exactly what you can expect in the future.
2. Value Per Visit
According to BigCommerce, VPV can be found by “dividing the revenue of your site by the number of visitors over a given period of time.”
What does that mean, exactly? The result of that equation will show you how much revenue each visitor brings to your site on average. Use this in conjunction with your Cost Per Acquired Visit to understand the basic economics of your online shop.
3. Pages Viewed Per Session
How engaging is your site? How navigable is it? Are people sticking around? These are the questions you answer when you monitor how many pages your visitors view per website session. The fewer the pages, the less they’re interested in your shop as a whole. The more they visit, the “stickier” your website is.
4. Email Click-Through Rate
The percentage of your email recipients who clicked on the links in your emails is your ultimate Email CTR. This helps demonstrate how effective — or ineffective—your email marketing is. It can also reflect on the quality of offers you put out through email. But it’s an essential way to monitor your shop’s success because it reflects on your relationship with your previous customers.
5. Cart Abandonment Rate
This is not a pleasant KPI to examine, but it’s critical if you want to maximize your sales. If you have a lot of people abandoning their carts, it means that your site has more optimization to do. You can send out automated emails that reminds customers that their cart has been abandoned — this alone can boost the total sales you make and, in turn, boost your VPV.
6. Average Order Value
How much money do you average every time someone orders something from your site? It might not sound that important—particularly if you have a lot of different products from which to choose—but the Average Order Value reflects the value of each visit, which in turn informs how much you might need to spend to acquire these customers, or how much you stand to gain when you improve your conversion rates.
7. Bounce Rate
The bounce rate at any point in your store is simply the amount of people who stop clicking through and go somewhere else. Like the Cart Abandonment Rate, it’s not a pleasant stat to look at, but it can be tremendously insightful. If you have key areas on your site that promote high bounce rates, this KPI can help identify them and point to potential improvements.
8. Mobile Purchase or Visit Percentage
In today’s world, you have to know how many people are visiting your shop on mobile — which can be a different experience entirely. If you know that most of your visitors are checking out on their phones, you need to optimize your site to match that demand.
These are just a few of the KPIs that can help you figure out where and how to scale your online store, but keep in mind that measurements matter. Money is math, and when you master the math, you’ll have a better grasp on the pulse of your online shop.