Why is E-commerce measurement important? | Weboptim
E-commerce means electronic commerce, i.e. purchases made on the Internet, business activities.
To serve our customers' needs, we need to know and understand their online shopping habits. What do they do before they click the buy button? Where do they go from the site without making a purchase? What is our conversion rate in the market?
From E-commerce measurement ensures that we have the most accurate answers to these questions and to consumers' online shopping habits.
Mwhat are the data that are worth measuring?
Customer acquisition cost
If you are present in the world of online shopping, but you don't know how many users are coming to your site, your visitors what percentage become become a customer, and how much profit a purchase on the site generates, we cannot be efficient enough.
Cart abandonment
It's hard to get customers to come to the website, but it's even harder to get them to buy something on our site. Many click on the "Add to Cart"/"Buy Now" button and proceed to enter their details. But not shopping? Why? What happened? Measuring basket abandonment is a good way to find out.
Google Analytics experiments
You can set up so-called experiments. We set goals, then have several goal-sites, differing only in small things, compete against each other. This way we can find out how people behave, which one is used / they like it better.
Customer value
How much revenue it generates a single customer? If we know the number of purchases and the costs, we can calculate how much we spent on them. We can then try to increase the conversion rate and thus the value of the customer.
ROI
Many businesses advertise online without measuring ROI, the return on investment. But with the ROI indicator, you can see for each source separately how much profits in our business, which form of advertising was most effective for us.
Average order value
We can observe that the the size of each order the value of and how much profit they generate. The average value of all sales is used to determine the average order value. If you have a lot of low value orders, it means you need to reach a lot more people and encourage them to buy. In addition to the value of the order, we can also find out which products are the most popular and what people buy most.
Attrition
Dropouts are people who have made one purchase on our website, but never more. That is, the percentage of users who they never came back to the website.
Conversion rate
Conversion rate is a key performance indicator for e-commerce sites. It shows whether visitors are how many people have bought with us. The higher the value, the better. If you think about it, every entrepreneur wants to know what the conversion rate is in the market.
Setting up e-commerce measurement
To set up the measurement, we need to enable the collection of E-commerce data in Analytics and place a measurement code on the website. We usually need the help of a programmer to place the code.
For a detailed description of the setup, see the following page: E-commerce tracking
In summary, E-commerce measurement is a very effective measurement tool. In the case of e-commerce, it is particularly important to know the above indicators in order to run an efficient and effective online business.