All eCommerce websites aim for maximum conversions, striving hard to make it big. But the million-dollar question is, how many of them actually track their conversions or more importantly, the driving factors thereof. Using a specific set of tracking metrics is very important because unless you gauge the success of your marketing efforts, you will not get a clear picture, and won’t be able to make amends if need be. And this goes for both the existing eCommerce sellers and the aspiring ones. You may continue to split test different approaches, but you do need some metrics to check if they’re all going in the right direction.
Here’s what you’ll need to pay attention to when tracking your progress:
1. The cost incurred for a single conversion
Many eCommerce sellers inadvertently focus on achieving the maximum number of conversions but fail to consider the costs involved. Aiming for a high conversion rate is obviously a good choice, but not if it costs you a little too much. A higher cost per conversion only drives business to losses, which is why this one is an important metric to track. For starters, you can check your landing page history to find out the pages that are highly converting. And to cut down on your conversion costs, you can split test this approach of sending the visitors to only those pages. Other than this, you can reconsider the set of keywords so as to filter out the non-converting ones, and more importantly, augment your sales figures. You can split test some stronger action words or keywords to find what works best for your eCommerce website.
2. The revenue from each of your traffic sources
Your eCommerce website receives traffic from four major sources: organic, paid, direct, or referral. While all four bring in good traffic, they may differ in terms of generating revenue for your website. It is best to invest in the source that’s getting you the maximum traffic and hence, the maximum revenue. So, during the split test, calculate the revenue generated through each of the traffic sources and invest in the one that’s the most beneficial for your business.
3. Average order value
To earn more revenue, your AOV, i.e. your Average Order Value must be high. The AOV depicts the average amount of money spent by a customer. The formula to find out this average value is:
AOV = Total revenue/Total number of conversions
Now, for a higher AOV, you’ll need to ensure that a customer spends the maximum amount when visiting your eCommerce website. This means that you need to persuade a customer to buy more. This is where eCommerce merchandising can come in handy and help you do just that, using:
Upselling: Try and convince your customers to purchase a more expensive version of what they’re buying.
Cross-selling: Suggest additional or similar items that the customers can buy.
Applying new cross-selling and upselling strategies can help you in generating more revenue. While you may have some ideas on your own, opting for cross-selling services or upselling services can help you better in coming up with some effective upselling and cross-selling techniques. Professionals who render these services even know how to measure cross-selling performance so that you can be sure of the techniques being applied are bringing in the desired results or not.
4. Shopping cart abandonment rate
A lot of customers add products to their shopping cart but somehow, end up abandoning the cart and not buying anything. Did you know that the global average rate of cart abandonment was about 75.6% in 2018? Tracking the rate at which your shopping cart is being abandoned is important since this lost revenue can still be recovered. How? Well, to begin with, you must “recheck” your checkout process to see if it’s too complex or requires the customers to go through a lot of steps. Simplify the process by eliminating unnecessary steps and let your customers check out without making it compulsory to create an account first. Other than that, send emails to the customers who abandoned their carts, encouraging them to make a purchase. Maybe even entice them with coupons. Split test to see what works best for you.
These are some of the crucial metrics that you’ll need to track when selling online. Keeping these in check will not only help you in verifying the end result of your efforts, but also ensure that your eCommerce business doesn’t suffer a loss at the cost of maintaining a high conversion rate.
How QuikTek Info Fits Into The Picture
Want to implement effective upselling and cross-selling techniques to improve the ROI of your eCommerce store? Don’t worry. QuikTek Info is here to your rescue. Our eCommerce merchandising experts are brilliant at devising a strategy that is best suited to your business requirements. To avail our upselling and cross-selling services, write to us at mail@quiktekinfo.com and we’ll get back to you at the earliest.
