What are the important metrics for eCommerce businesses?
One of the most important Google Analytics metrics you need to measure is bounce rate. This is the number of visitors that leave your site without visiting any other web pages. You need to work on reducing your bounce rate. A bounce rate close to the 100% mark, on the homepage and/or product pages, is usually an indication of navigation and/or technical issues.
To reduce your bounce rate:
- Improve the user experience by creating quality content and visually-appealing images and videos.
- Ensure that you have included all vital product information, e.g. size options.
- Run some product price comparison checks. Your competitors may be offering the same products as you at a better price.
- Run a site maintenance check. A high bounce rate may be the result of a slow loading web page.
Note that while it is normal to have a high bounce rate on blog posts and pages that only display videos, you should not be experiencing a high bounce rate on a multi-category website.
eCommerce Google Analytics conversion metrics
Cart Abandonment Rate
The Checkout Behavior in the Google Analytics eCommerce section will display your checkout abandonment rate.
Cart abandonment can be down to pricing. However, it can also be due to an issue with your checkout process or a technical issue. Ask yourself the following questions:
- Have I correctly configured my payment gateways?
- Is my checkout process too complicated or lengthy for my target customers?
- Have I added any extra charges at the checkout?
- Are my shipping times too long?
- Have I offered a guest/quick checkout option for buyers who do not wish to register for an account?
Did You Know?
You can use email marketing platforms like MailChimp to create custom emails to handle shopping cart abandonment. An email is sent to the customer shortly after they have abandoned their cart encouraging them to return. You can download MailChimp’s app into your store. It integrates with several shopping cart software applications such as Shopify, WooCommerce, and PrestaShop.
By examining your product performance, you should be able to make business decisions such as product pricing, what sort of discounts and promotions to offer, which products to cross-sell, which products to promote, and which to discontinue.
Most consumers will do their online shopping over the weekend. The most popular shopping day is Sunday. Therefore, you should carry out any web maintenance or product updates during the week, set up your ad campaigns, and add your bestselling products to your homepage.
Analyze the customer journey through your sales funnel. What activities and interactions did it take to turn your visitors into customers?
Customer retention affects Customer Lifetime Value (CLV), which is the projected profit a customer will generate during their lifetime. To increase profits from your existing customers, draw up an engagement strategy plan. Take advantage of email marketing and retargeting ad campaigns to encourage past customers to return to your website. In addition, offer discounts and loyalty rewards.
Refunds and returns checklist
Some refunds and returns cannot be helped. However, you need to ensure that you have taken precautions to reduce your refunds and returns. Consider the following:
- Product quality
- Shipping times
- Size/dimensions on product listing
- Refunds and returns policy
- Accurate product descriptions and product titles
- Clear product images. The photos should reflect the actual products, so avoid excessive retouching
Acquisition (how people found your website)
Once you have set up goals, you can monitor the effectiveness of your advertising campaigns and monitor user engagement on your social media platforms. The Google Analytics All Traffic report displays the source of traffic for your conversions, i.e. revenue.
By analyzing the acquisition channels and referrals, you can decide where to target your ad campaign spending. You should have calculated your average acquisition costs, or have an amount in mind that you want to spend on your ad campaigns.
You need to increase or reallocate your campaign spending on acquisition channels and referrals that generate the highest revenue. Use your best performing channels and referrals. These may not necessarily be the ones that drive the highest amount of traffic.
For example, you may find you get a lot of organic traffic (that is traffic from unpaid search results) but few of these visitors become customers. On the other hand, you may get less traffic from your Facebook page but more customers. You should therefore increase your market efforts on Facebook and improve your on-site optimization.