Without the proper marketing, your ecommerce store has little chance of connecting with customers and closing sales—but how can you tell that your marketing efforts are getting results? There are several key metrics we’d recommend as you seek to determine marketing ROI. Here are 12 of the top ones.
- Number of conversions. This one’s the most obvious: If you launch a new marketing campaign and see a significant uptick in your total transactions, that’s obviously a positive thing. In fact, getting more transactions is really your primary goal!
- Conversion rate. A similar metric, conversion rate measures the percentage of your website visitors who end up closing a transaction. A higher conversion rate means your ecommerce site is doing its job.
- Customer acquisition costs. How much are you spending for each new customer? What’s the ratio of your marketing spend to new transactions?
- Customer lifetime value. When you bring on a new customer, how much will that customer generate in revenues? Will it be a one-time transaction, or something recurring?
- Average order value (also known as Average Order Size of AOS). How much money do customers spend in your ecommerce store? This metric helps you understand consumer behavior as it relates to your products and your brand.
- Retention rate. How many of your customers become repeat customers, as opposed to one-timers?
- Return on investment. In the broadest terms, how much money do you make in relation to the marketing dollars you spend?
- Budget and revenues. Relatedly, it’s always important to see how your marketing budget stacks up against your total revenues.
- Average margin. Taking out overhead and materials costs, how much pure profit remains from your ecommerce sales?
- Refund and return rate. What percentage of your transactions end with the customer returning the product and asking for their money back?
- Customer support rate. Likewise, what percentage of your transactions require the input of a customer service representative?
- Best products and categories. Which inventory sells the best? The worst? Which product category has room to optimize and grow.
Take a Data-Driven Approach to Ecommerce Marketing
To get the most bang for your marketing buck, make sure you promote your ecommerce site with a data-backed strategy. Sefati Consulting Group is known for our scrupulous approach to numbers and metrics, and for our transparent communication style. Contact us today to learn more about data-driven ecommerce marketing.