If you own a business, and you are running an online store, it’s important to review certain sets of data in order to measure performance and make informed decisions on how to adjust your website for better conversion. Below are a few important metrics that you will want to review.
This is important for both e-commerce websites and websites without e-commerce. Regularly assessing the amount of website visits you receive allows you to see the performance of your different marketing campaigns. Additionally, you’ll want to look at where these visitors are coming from. Are they finding your online store through SEO, social, direct, or other sources? From there, you can start adjusting your marketing efforts by figuring out which source you’ll want to spend more time on.
Next, are people finding your website on their desktop computer, their mobile phone, or their tablet? Depending on the device the customer is using, make sure your website is responsive for it. This makes the shopping experience much more user-friendly, allowing customers to find and purchase products as quickly and as easily as possible. Not to mention, even Google has recently included mobile-friendly websites as part of their ranking factors for SEO.
Now that you’ve analyzed who your website visitors are and where they are coming from, you’ll want to review product performance. Take note of which products people are purchasing the most, which products people are purchasing the least, and which products you are trying to sell the most of. Are your top selling products in line with what you are trying to sell the most? Are there certain items customers put in their cart but then abandon once they get to check out? How many products are people purchasing at a time?
Depending on performance, you’ll want to adjust your website accordingly. This includes choosing the right featured products, the layout of your product pages, how you categorize your products, and making sure customers don’t have to click on too many buttons to finalize their purchase.
While product performance is great for figuring out how to re-structure your website, you must also analyze product revenue. Even though people may be buying multiple items at a time, just how much revenue, on average, are those purchases bringing to your business? If you are tracking revenue monthly, is it trending positively? If there are certain trends / seasonalities in your business, have you marked this down to see how it’s been affecting your sales? For instance, a women’s boutique will probably see more sweater purchases in winter and more dress purchases in spring and summer.
After analyzing your product revenue, are there certain products that aren’t providing you with a great ROI? Are certain products never getting purchased, and can you replace it with a newer, more in-demand product? Are there products that you may actually be losing money from? Always review your inventory and revenue so that you are providing products that customers want to buy while making sure it benefits your business.
Last, but certainly not least, are you running promotions, offering coupons, or first-time customer deals? If there are coupon codes for customers, track the amount of times it’s been used. If you are running paid advertisements, track how your budget is being used and the clicks it receives. If you are featuring your products on social media sites like Facebook, do you make sure to link to the exact product page rather than the general homepage for higher conversion?
Promotions are not only great for customers, but it also gives you, the business owner, insight as to what people are interested in. For instance, if you’ve been featuring both happy hour specials and lunch specials on Facebook, it’s important to see which is performing better than the other. If more people are taking advantage of the happy hour specials you may want to advertise that information on more platforms, not just Facebook. Make it a big feature on your website, use PPC advertising on search engines like Google, and post more frequently about it on social media. You may even want to create a hashtag for customers to use with the following incentive: take a picture at our restaurant, use the following hashtag #businessnamehappyhour, and get 1 free appetizer on your next visit. Or, if lunch specials is where you wanted your focus to be, since it’s not performing as well as happy hour, try advertising it in different ways and see what works best.
While website visits, product performance, product revenue, and promotions tracking are not necessarily all the data sets that you will need to determine the effectiveness of your e-commerce website, they are definitely some of the most important. At the end of the day, make sure you have some sort of Analytics software enabled for your website so that you can start to make informed decisions on how you can improve your online store.