Every e-commerce business wants to improve its profit margins and ROI.
Using Google Analytics, your business can measure and analyze traffic, engagement and sales. E-commerce analytics inform your sales and marketing teams, enabling them to improve their strategies.
What top analytics should you be tracking with Google Analytics?
Let’s find out.
What are metrics and KPIs?
Key Performance Indicators (KPIs) and metrics include important measurements, data and analytics to estimate a website or business’s success.
E-commerce tracking involves collecting data and analytics from various KPIs and metrics to track online sales, website traffic, and conversions.
Tracking your business’s metrics and KPIs enables you to gauge your efficiency, success and growth opportunities. So, what KPIs and metrics should you be monitoring?
Top 6 metrics to track for your e-commerce business
There are a variety of metrics your business can track and analyze. However, you want to focus on the most valuable metrics to ensure efficiency and impact.
- Users and web traffic – Tracking the number of visitors and users will allow you to assess your marketing and advertising efficiency. This metric may spotlight marketing opportunities and areas for improvement. These numbers are available in Google Analytics in your Audience reports, insights and acquisition reports.
- Sales conversion rate – Your sales conversion rate is arguably the most important metric to track. This crucial metric informs you of your business’s efficiency, success, marketing effectiveness and more. Once you have your conversion rate, you can compare it with your competitors and industry/field if the data is available. This will show you if your business is underperforming or if your business is doing very well.
- Abandonment rate –This metric tracks the number of times customers begin the purchase process and exit the checkout or leave the webpage idle. This metric highlights sales funnel issues, usability challenges, and other factors that may deter clients from completing the purchase.
- Average order value (AOV) – The average order value metric is an average of the dollar amount each purchase adds up to in your shop. It is a vital metric to inform you of your shop’s success. This metric also allows you to maximize income per customer over time.
- Customer acquisition cost (CAC) – This metric tracks the average investment spent to acquire a customer. This average is based on your marketing budget and revenue. Check this metric regularly to ensure you are not spending over your budget or your Client’s Lifetime Value (CLV).
- Return customer rate – Your repeat or return customer rate is the number of customers who have made two or more purchases with you. An e-commerce site’s average return customer rate should be between 20% to 30%. Calculate your rate and compare it with this range.
If you are performing above 30%, then you’re doing something very well! If you are on the lower end of this range or below 20%, you have identified a great opportunity to grow.
There are many other KPIs and metrics we could cover. Some honorable mentions are Click Through Rate (CTR), session by location, device, or source, average inventory by day, and top conversion sources/paths.
Whatever metrics you choose to track, start with the top six in this article to ensure a solid analytics foundation. These metrics will enable your business to grow and improve your ROI.
Have you made the switch to Google Analytics 4 yet? Google is replacing its standard Universal Analytics with GA4 on July 1, 2023. Learn about GA4 and how you’ll be affected.
Tracking metrics and distilling your data into actionable information is a feat. To use your data most efficiently, consider a strategic marketing partner. Dream Local Digital is a marketing agency that partners with U.S.-based businesses to enhance their marketing ROI. With a comprehensive digital marketing plan, we boost your e-commerce business’s efficiency and performance.