Measuring the right numbers is essential if you want your e-shop to grow. Here are the 7 most important KPIs to track if you want to improve performance and increase sales.
1. Website Traffic
Traffic shows how many people visit your site and where they come from: organic search, paid campaigns or social media. Tracking it tells you which channels and campaigns actually perform.
- How to measure it: Use a tool such as Google Analytics to track the number of visitors and the sources that send them.
2. Engagement Rate
Engagement rate shows how active visitors are on your site. High engagement means people find your content interesting, and they are more likely to become customers.
- How to measure it: Track interactions such as clicks, time on page, scroll depth and pages viewed per session.
3. Conversion Rate
This is the percentage of visitors who complete a desired action, such as buying a product. A high conversion rate means your e-shop is good at selling.
- How to measure it: Divide the number of orders by the total number of visitors and multiply by 100.
4. Cart Abandonment Rate
The share of shoppers who add products to their cart but never complete the purchase. A high rate usually points to a problem in checkout, shipping costs or the cart itself.
- How to measure it: Divide the number of abandoned carts by the number of checkouts started and multiply by 100.
5. Average Order Value (AOV)
AOV shows how much customers spend per order on average. It is key to understanding buying behaviour and planning offers, bundles and free-shipping thresholds.
- How to measure it: Divide total revenue by the number of completed orders.
6. Customer Acquisition Cost (CAC)
CAC tells you how much it costs to win one new customer. The lower your CAC, the more efficient your advertising.
- How to measure it: Divide your total ad spend by the number of new customers those ads brought in.
7. Customer Lifetime Value (CLV)
CLV is the total value a customer brings over the whole relationship with your business. Raising it is the surest way to build a profitable, long-term e-shop.
- How to measure it: Multiply average order value by the number of orders per customer, then by the average length of the customer relationship.
Leave it to us
If you want to improve your e-shop and move these numbers in the right direction, take a look at our e-shop development and optimisation service. We combine proven SEO and conversion practices to help you reach more people and sell more.
Want help growing your business? Talk to the DonDigital team about a website, an e-shop or ad campaigns.
