Track Ecommerce KPIs To Run Your Marketing Campaign
Due to the highly competitive environment, running an eCommerce store successfully has become tricky. There are several data points in the online world. Although it is easy to access data, you may find it challenging to decide. Which metrics should be tracked using the latest technologies? How should you distinguish the actionable and relevant metrics from the irrelevant ones? You should have a clear concept of your eCommerce KPIs. Track eCommerce KPIs to know how your marketing campaign works. A simple analysis of eCommerce data will be highly valuable to you.
Defining KPIs- Know their importance
KPIs are the major metrics you must track to ensure you have met your goals. So, before starting the campaign, you have to set the KPIs to measure the effectiveness of your campaign. You can also improve your metrics and create actionable items to beat your competitors.
Track eCommerce KPIs for your digital marketing campaign
Before understanding the conversion rate, you have to know about conversion. It may vary with your business objectives. Conversion means a sale for some businesses. Again, other businesses consider that higher conversion means more app downloads. However, the central concept is that conversion is an action that affects your business.
To identify the conversion rate, you have to learn the formula. You can integrate Google Analytics with your platform to measure conversion rates. It helps you automate the calculation process. Similarly, you can use Shopify Analytics if you have a Shopify store.
You have to benchmark your marketing results against competitors and industry standards. You can create a strategy for Conversion Rate Optimization for improved performance.
Average Order Value
It is one of the essential metrics to know how many orders have been placed on your eCommerce site over a particular period. You can focus on AOV to make the most critical business decision. Based on this KPI, you can decide on the product placement and ad spend.
AOV can be classified into different sections, including returning customers and new ones. So, you can create your strategy by calculating AOV.
Cart Abandonment Rate
This rate is shown as the percentage of your store visitors who have added items to the cart but have not made any purchases. In some cases, complicated checkout processes cause them to leave your site. However, there may be several other reasons for the higher cart abandonment rate.
You can use Google Analytics and other analytical tools to track business metrics. After determining the cart abandonment rate, you can look for potential problems. Bad website experience for slow speed and website performance issues is the major reason behind losing customers.
Also known as Customer Lifetime Value, this metric denotes the overall value of every customer to your eCommerce business. You need to focus on your revenue to relate to this metric. Other relevant metrics include the Net Promoter Score which varies with the user experience.
You can break down CLTV into a number of periods and channels. Google also lets you calculate it through the Lifetime Value Report of Analytics. By analyzing CTLV, you can define your target customer segments.
Cost Per Acquisition
How much has your brand paid for every user to take action on the website? It helps you know the CPA or cost per conversion. Thus, you should identify the particular action to be considered as conversion.
CPA reveals the effectiveness of your brand’s ads to persuade the target audience. If CPA is higher, your campaign is not optimized to connect with the target audience. So, you have to adjust the ad copy to get the desired result.
Click Through Rate refers to the number of clicks your ad links receive divided by the exact number of times the advertisements are displayed. Thus, if you find a higher Click Through Rate, your ads have engaged more viewers. Based on the types of clicks, you can categorize the CTR.
While making your CTR analysis, you have to identify the link clicks. Or else the KPI will focus on other irrelevant clicks. By identifying the CTR, you can optimize your advertisements.
Do you now like to start a marketing campaign for your eCommerce business? Set the most relevant KPIs related to the campaign. To add automation to the campaign, you can use Capture, a patented software. Integrate different tools into this software and measure your campaign performance. Track eCommerce KPIs with Google Analytics and other analytical tools.
Capture® is a MOV•ology™ Company that provides real-time automated web form abandonment solutions to increase ROI using our Patented Technology Platform.
(US Patents 9,280,531, 9,286,282, 9,589,281 & 10,042,838).
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