Are You Tracking the Right eCommerce Customer Engagement Metrics?
Sometimes finding eCommerce marketing success can feel like a game of luck. Everything from attracting the right buyers over to your site, and then getting them to consistently convert at a profit can seem like you are throwing the dice and hoping for a winning combo. We are here to tell you there is a better way. Tracking the right metrics and making data-driven decisions will get you out of guess work and into eCommerce conversions!
Here are what we deem as the most important engagement metrics all eCommerce sellers must track for success.
COST PER ACQUISITION
How much does it cost to get each one of those buyers over to your website to purchase something? Don’t destroy your profit margins when using pay-per-click (PPC) or social advertising to drive traffic to your site.
How do you figure out your margins? It’s easy! Take the retail cost of your product, and subtract the manufacturing and shipping costs and you have your profit amount. As long as your cost-per-acquisition is less than your profit amount, you should be able to appropriately scale your campaigns to maximize sales.
It is, however, important to find that sweet-spot in cost-per-acquisition and get the cost for every buyer down as low as possible. To achieve this, we recommend that you split test all campaigns, refine targeting, remove all regions from your campaigns that are not profitable, and maximize your on-site conversions. Sound overwhelming? (hint: we can help)
How many people visit your site, and convert to paying customers? Driving a lot of traffic to your website with very few conversions is obviously not the goal here. With proper targeting, you can drive less traffic to your site that is a better match for your product, which will ultimately have a higher conversion rate.
Rather than market to everyone under the sun, it’s important to focus your marketing to your key demographics. We really like Facebook ads because they allow you to select key interests in buyers, focus on specific regions, and exclude certain age groups to specifically target those that fit your niche.
If you’ve got your targeting hammered out, consider tweaking your landing page content to bump up your conversion rate. Here are some ideas:
- Great product photography
- FOMO elements (countdown timer, or number left in stock)
- Credibility elements and social proof, such as reviews and trust symbols
- Payment options (does a subscription model work?)
- Your “Add to Cart” button placement and color
AVERAGE ORDER VALUE
Your average order value represents the average dollar amount a customer spends in your store. Obviously, you want the average order value to be as high as possible for each conversion. How do you do that?
- Add more products to your store
- Create bundled discounts on items
- Promote up-sells and cross-sells
- Add a GWP (gift with purchase of certain cart dollar amount)
CUSTOMER LIFETIME VALUE
Don’t forget about your existing customers! Selling to someone who is already a customer is much easier than acquiring new customers. A great way to increase profitability is to increase the customer lifetime value, which is the average amount a customer spends during their relationship with your brand.
If you know how much a customer was worth to you long-term, this will allow you to properly scale your business and plan for longevity with the customer. Here are some tips to help you increase your customer lifetime value.
- Improve your average order value
- Show off some brand advocates on social media
- Promote loyalty programs
- Keep your customers engaged with email and content marketing
- Use social media as a way to provide customer service
CART ABANDONMENT RATE
On average, 70-81% of people abandon their carts before completing checkout. If your cart abandonment rate is over 70%, there is tremendous opportunity to reconnect with the potential customer. What should you do to get them back to your site? We recommend the following.
- Allow guests to checkout without creating an account
- Invest in a solid retargeting/remarketing campaign
- Create an email sequence to be sent to those with abandoned carts
- Add multiple ways to pay to your checkout options (more is more)
Using the above metrics to track customer trends on your eCommerce site will lead you down the path of success with your online store.