To be successful with your e-commerce and stand out from the competition, besides offering good products or having a site with good navigability, you must always check the conversion metrics that your platform has to offer. In general, we can say that metrics are all the results (which can be numeric or not) that your company presents.
Studying this data is one of the many possibilities offered by digital marketing that verifies the user's behavior online and, thanks to this monitoring, allows the application of strategies that are more appropriate to your audience. Moreover, with them it is possible to have a more realistic notion of ROI, which is the return on investment in marketing.
Thinking about such relevance, in this article we will present six of the main conversion metrics that are fundamental to have a successful e-commerce. Are you ready? Let's go!
1. Customer Acquisition Cost
Customer acquisition cost, or CAC, is a metric that reveals the sum of all the resources invested in order for customers to find your online store, divided by the amount of customers that actually arrive. So, the lower this value is, the better your customer acquisition strategy is doing.
However, for the values obtained to make sense and really show whether the strategy has worked or not, it is necessary that those responsible for management have recorded all spending on advertising and marketing actions. If this procedure is not done, the values may not be real, and thus convey the wrong impression of the team's success.
Thus, for the CAC value to be true to reality, the ideal is to gather all expenses with paid media, adwords, email marketing, boosting on social networks, or other actions aimed at attracting customers. Once this is done, check that if your costs are higher than the average consumption of each user, this information shows that your virtual store may be having losses and that you need to review your strategy.
It is worth noting that one of the advantages of this metric is to know how much money must be invested to acquire customers and achieve your goals.
2. Conversion Rate
The conversion rate is a metric that indicates the rate of how many visitors to your site performed actions during their visit, either by registering an email, becoming a lead, or actually making a purchase.
The conversion rate value can be obtained from the following formula: (number of visitors who perform some action / number of total visitors) x 100.
Through this expression, you can consider that if your conversion rate is a low number, it is a sign that people are not fulfilling the goal you have for them: to buy. On the other hand, if your conversion rate is high, it is an indication that users are attracted to the content and products you offer.
In general, a low conversion rate may be related to the lack of structure of the site, difficulty in payment, insufficient product description, expensive shipping, among other factors that deserve to be studied.
3. Rejection Rate
Another rate that deserves a lot of attention is the rejection rate. Unlike the number of conversions, this metric reflects the number of customers who made a single purchase and did not repeat the action.
This value can be measured from the sum of the total customers minus the number of repeat customers. If the value of the difference is too high, it means that it is time to think about ways of building customer loyalty. A good way to keep customers close is to use e-mail marketing, offer exclusive discounts, or carry out actions on commemorative dates, such as birthdays, for example.
4. Abandoned cart
Another key conversion metric to evaluate your store's strategies is to understand the reasons why people abandon the cart. Often when there is no completion of the purchase during this stage, it may be that there was a problem during the payment execution.
This index can be measured as follows: (number of people who put a product in the cart / number of people who make the purchase) X 100.
It is important to observe this behavior because if a person adds a product to the cart, it means that he or she has some intention of buying it. When this operation is not completed, it is necessary to understand what the reasons were and think of ways to avoid this problem.
5. Average Ticket
Basically, the average ticket refers to the average amount a customer spends on an e-commerce site. From this number, it is possible to identify the number of customers required to achieve the sales goal within a certain period of time (usually monthly). It is also possible to know if the amount spent by these people is greater than their investment, which means profit.
The value of this metric can be obtained by means of the following calculation: sum of the total amount in cash sales / number of sales made.
It is important to note that this metric varies according to the type of product marketed by the store, and from this it is also possible to draw the best strategies to achieve your goal.
6. Number of Visitors
Finally, the number of visitors indicates the potential that your e-commerce has to increase sales. For this data to become a conversion metric, it is necessary to monitor traffic and understand what the problems of these potential customers are. Understanding the number of visitors is also important to check which outreach strategies best fit your goals.
As we have seen, knowing the conversion metrics is essential to better understand your customers through digital marketing strategies. With this, your e-commerce will certainly achieve the best result and, consequently, generate the expected profit.
So, did you already know these metrics? If you want to know a little more about it, read our article on how much can a bug in your virtual store cost!