It’s 2020, new year, new ambitions. And when it comes to running an eCommerce website, your strength lies in your ability to understand your numbers, how they measure up with your objectives and what you can do to reach your goals as you implemnet your entire eCommerce marketing strategy.
That is why knowledge of the latest eCommerce benchmarks is key to your overall eCommerce success.
While you may be familiar with eCommerce benchmarks like Page Views and Average website visits – and probably understand how these individual metrics affect the growth of your business, we would like you to take a look at three eCommerce metrics that should be of utmost concern for you as the decade kicks off.
Average Order Value (AOV)
Average order value tracks the average pound a customer spends each time he/she places an order on a website or mobile app.
AOV is an important metric that online businesses employ to measure and understand their customers’ buying habits with the aim of increasing lifetime value.
Why it should matter to you
As an eCommerce business, knowing your company’s average order value enables you to evaluate your overall online marketing efforts and price strategy by providing the average metrics you need to measure the long term value of each customer.
It is important to stress here that your AOV will depend on the type of products you sell. Hence if your order value is too low, a solution might be to cross/upsell more aggressively or consider new products with higher-order values.
The add-to-cart rate is the percentage of site visitors who add at least one item to their cart during a surfing session.
Why add-to-cart rates matter
Add-to-cart rates are pertinent to track as they reveal to you how successful your product selection, site usage and marketing efforts have been. Since statistics show that about 30-40% of site users who place an item in their cart end up completing the purchase, efforts to improve your add-to-cart rates would pay off in significantly increasing the revenue of your business. If this metric is reducing, don’t worry: it could be because of the new express checkout feature on eCommerce stores that skips the cart feature on product pages when you have a saved payment method.
A conversion is basically any desired action that you want your user to take. This could be anything from clicking a button on a sign-up form to clicking a ‘Buy Now’ button to make a purchase.
You could choose to have multiple conversion goals for your eCommerce business and each of these goals will have its individual conversion rate. For the purpose of this guide we are focusing on the purchase conversion.
Why do conversion rates matter?
When you track your conversion rates, you’re able to measure how well your webshop is doing. It is in tracking that you understand what percentage of your users are completing the goals you set which propel your business, and also monitor how successful your app or website is while detecting areas that demand improvement.
When you have identified areas of improvement and take steps towards fixing them, you pave the way for your conversion rates to go up thereby allowing you to get more sales with the same amount of traffic. You can also develop initiatives that focus on reactivating lapsed customers.
Now that you are privy to the latest eCommerce benchmarks, it’s time to do a complete check on your metrics using the information you now know to drive sales and ace your goals for the year.