What are the most important metrics to measure for E-Commerce success?

AI plays a key role in tracking and optimizing the conversion rate. It analyzes user behavior, suggesting improvements for a smoother customer journey. The LinkedIn community provides real-world insights into what drives conversions, helping refine strategies based on industry-specific experiences.

The ultimate eCommerce scorecard - Forget sessions, bounce rates, or session duration. Conversion rate reigns supreme. If it's low, the problem goes beyond your website. Product quality, pricing, terms, everything might be on the table. But a soaring conversion rate? That's a win that excites the whole company. It signifies a smooth user journey, a compelling offer, and a business firing on all cylinders.

Analyzing conversion rates helps identify areas of improvement in the user experience. By understanding where users drop off or abandon the conversion funnel, businesses can optimize website design, navigation, content, and checkout processes to reduce friction and improve conversion rates. This iterative optimization process enhances user satisfaction and drives higher conversions over time.

AI's your ace for bumping up those conversion rates, digging into user actions to polish up the customer journey. Tapping into the LinkedIn squad offers you a treasure trove of real-deal conversion wisdom, tailoring your game plan with insights specific to your industry.

AI can analyze purchase patterns, suggesting upselling or bundling opportunities. LinkedIn insights offer diverse perspectives on increasing order values. Combining AI predictions with community experiences enables effective strategies for boosting revenue per transaction.

AOV's the cash your customers drop per buy. It's a big deal 'cause it shows the dough you're making per sale and if your deals, bundles, and upsell games are on point. High AOV? You're raking in more profits and beefing up customer value. Low AOV? You're missing out on making more bank. Just take your total revenue and divide it by the number of orders to see where you stand.

Leveraging AI, calculate and optimize customer acquisition costs for efficiency. Engage the LinkedIn community to share experiences in cost-effective customer acquisition strategies. This collaborative approach, blending AI precision and community wisdom, ensures a well-rounded perspective for successful E-Commerce growth.

In the short term, understanding CAC allows e-commerce businesses to assess the immediate effectiveness of their marketing campaigns and channels. By knowing how much it costs to acquire a customer, businesses can allocate their marketing budget wisely, focusing resources on channels that offer the best return on investment (ROI). This helps optimize short-term revenue generation and ensures efficient resource allocation.

CRR is like a loyalty litmus test! High CRR = happy, sticking-around customers. Low CRR? Time to rethink strategies. It's all about keeping those relationships strong.

CRR is a great metric for measuring Ecommerce success. If you are in B2B or your B2C product has a long life span, such as real estate, automobiles or high-tech, then you may also be interested in measuring Customer Referral Rate (referred purchases as a % of your total purchases).

NPS is perfect for measuring happiness and loyalty among customers and also for avoiding Bad Profits. The concept of Bad Profits is about the effect of not finding the good, relevant and impactful aspects of your marketing strategy. If you encounter problems while trying to convince your team members, supervisors or Steering Committee about NPS integration, then you can highlight the effects of Bad Profits: - Your brand reputation is blurred - It is more difficult to find new profitable clients - It is more difficult to increase the average order value - It is more expensive to attract new talent

One of the big things you can do to improve your cart abandonment rate is to hyper-personalize your cart abandonment flows so they are not 'generic' or 'one-size-fits-all' - Done correctly, this will skyrocket your cart abandonment rate.

Besides these key metrics, there are several very crucial metrics to track for a healthy ecommerce business (many apply to any retail business): 1. Gross Margin% 2. Inventory turns 3. Delivery cost per order (and %) 4. Returns% & Cancel% 5. Cost per Order (I find this more useful than CAC, because most businesses i have seen, the CAC is NOT a one-time cost - you have to spend to 'reacquire" the customer each time, maybe thru different channels or discounts) 6. Revenue per vistor (which is CR% X AOV), which enables a mental comparision with the CPC (not exact, but useful as a ballpark reference)

In my opinion, the Lifetime Value (LTV) of a customer has to be mentioned as well. It is crucial for understanding the long-term revenue potential each customer brings. Coupled with the Customer Acquisition Cost (CAC), the LTV/CAC ratio emerges as a vital metric, highlighting business sustainability and efficiency. An optimal LTV/CAC ratio indicates not just cost-effective acquisition but also maximized revenue from customers. It guides the fine-tuning of marketing strategies, spending, and customer experiences to achieve a profitable balance.