Measuring the performance of an eCommerce website is essential for any business that wants to grow and succeed online. As the most popular analytics tool available, Google Analytics offers a wealth of data and insights to help businesses track their eCommerce performance. Here are the top metrics every eCommerce business should be tracking:
Revenue
Revenue is the most important metric for any eCommerce business. Tracking revenue allows you to see how much money your website is generating over a given period. This metric should be broken down by source, so you can see which channels (e.g. organic search, paid search, social media) are generating the most revenue. By understanding where your revenue is coming from, you can make informed decisions about where to invest your marketing budget to get the best returns.
Conversion Rate
Conversion rate is the percentage of website visitors who complete a desired action, such as making a purchase or signing up for a newsletter. This metric is a key indicator of how well your website is converting visitors into customers, and it should be tracked over time to see if there are any trends. You can also break conversion rate down by source, so you can see which channels are driving the most conversions.
Average Order Value
Average order value (AOV) is the average amount of money customers spend on your website in a single transaction. This metric is important because it can help you identify opportunities to increase revenue per customer. For example, you might consider offering free shipping for purchases over a certain amount to encourage customers to spend more. Like other metrics, AOV should be tracked over time to see if there are any changes or trends.
Shopping Cart Abandonment Rate
Shopping cart abandonment rate is the percentage of website visitors who add items to their cart but then leave without completing a purchase. This metric is important because it can help you identify where your website's checkout process might be causing friction for customers. By understanding why customers are abandoning their carts (e.g. unexpected shipping costs, complicated checkout process), you can make changes to improve the experience and reduce cart abandonment.
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