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[THREAD]: Taking your business online this year? Here's 5 key metrics to help track your performance 
1: Conversion rate.
Shows you how many people who visit your site actually buy something. It’s a great starting point for gauging the appeal of your store and product placement, and it’s fundamental to long term success.
See what good looks like
https://www.invespcro.com/blog/the-average-website-conversion-rate-by-industry/
Shows you how many people who visit your site actually buy something. It’s a great starting point for gauging the appeal of your store and product placement, and it’s fundamental to long term success.
See what good looks like
https://www.invespcro.com/blog/the-average-website-conversion-rate-by-industry/
Formula:
Conversion rate = (Number of sales / Number of website visitors) x 100
Conversion rate = (Number of sales / Number of website visitors) x 100
2: Cost of acquiring a customer (CAC).
This is how much you spend to get 1 customer. Make sure that you’re not spending more on getting the customer than the customer is spending at your store.
This is how much you spend to get 1 customer. Make sure that you’re not spending more on getting the customer than the customer is spending at your store.
Formula:
CAC = Total sales and marketing expenses / Number of customers acquired
CAC = Total sales and marketing expenses / Number of customers acquired
3: Gross profit margin.
This tells you how much money you make at the end of the day, after you’ve paid the bills. In other words, it’s what you sold your products for, less what it cost you to supply them.
This tells you how much money you make at the end of the day, after you’ve paid the bills. In other words, it’s what you sold your products for, less what it cost you to supply them.
Formula:
Profit = Revenue - Cost
Gross profit margin = Profit / Retail Price
Profit = Revenue - Cost
Gross profit margin = Profit / Retail Price
4: Average order value (AOV).
The average amount of money that a customer will spend at your store, at one time. The higher you can get this total, the better. It’s the e-commerce equivalent of a brick-and-mortar store’s “basket size”.
The average amount of money that a customer will spend at your store, at one time. The higher you can get this total, the better. It’s the e-commerce equivalent of a brick-and-mortar store’s “basket size”.
Formula:
AOV = Total sales revenue / Number of carts
AOV = Total sales revenue / Number of carts
5: Customer retention rate.
Number of customers you’ve already acquired, who are happy with your product and service enough to return. It’s easier and more cost effective to keep existing customers happy, than it is to attract new ones.
Number of customers you’ve already acquired, who are happy with your product and service enough to return. It’s easier and more cost effective to keep existing customers happy, than it is to attract new ones.
Formula:
Customer retention rate = (Number of returning customers / Total number of customers) x 100
Customer retention rate = (Number of returning customers / Total number of customers) x 100
Learn more about how to calculate, interpret and optimise these metrics on our blog https://www.yoco.co.za/blog/article/e-commerce-metrics-to-learn/
https://www.yoco.co.za/blog/article/e-commerce-metrics-to-learn/
