Data is crucial to anyone who wants to deal or deals with e-commerce. As a starter in the industry, you need to spend time in making decisions that will help you to get closer to your targets. You will have to decide on which products to deal with, who are your customers, where to get them, and how.
“The first thing to start with is building your business, and you will need to create a good website and add all the necessary features, such as payment and shipping processes,” said Issa Asad Florida entrepreneur since 1996. Mr. Asad is the CEO of Q Link Wireless and Quadrant Holdings, located in South Florida. He is also the author of 4 e-commerce and marketing e-books that can be purchased on Amazon.
But after launching your business, it doesn’t mean you are now thriving, and it’s time to relax. You will need to go past that and now change from a business builder to data analyst. Being a good data analyst will help you to boost your profits, reduce expenses, and get a broader customer base. This is because you will make analyzed decisions on which areas to change and when.
Here, Issa Asad Gives 4 Ecommerce Metrics You Must Never Overlook:
Customer lifetime value (LTV)
Customer lifetime value is a very critical metric, and you should never overlook it in e-commerce. LTV will help you to determine how much profit you will make from a customer. Knowing the value of your customers during their average lifespan, you can make better-informed decisions that will leave your business profitable. You will know how much to spend in acquiring and retaining a customer without going to the negative side.
Customer acquisition cost or CAC
This helps you in determining the cost of acquiring each customer. Calculating this is very simple. You divide the total cost incurred in acquiring customers by the total number of customers you gained during that period. To get the total cost, you add any cost incurred in content creation, social advertising, direct mail campaigns, and other marketing strategies. After getting your CAC, you can compare it with LTV and if you find you are spending more than you are getting you should think about changing some strategies.
Revenue by channel
This is another important metric that you can never ignore if you want to succeed in e-commerce. Revenue by channel helps you to know where there is more impact and concentrate on those parts. For example, if your direct mail campaigns are giving you more customers than Facebook ads, you will need to focus more on the direct mail campaigns and invest heavily on that.
Load time/page speed
In e-commerce, your website will act as your shop, and the first impression is very important. You should pay attention to how fast your website opens or how many seconds will it take for your website to load. If your site is loading too slow, many visitors will bounce back and leave without taking action. To compete on search engines, you need to lower the bounce rate in your website, and the best way to do this is by making sure your website is responsive, and page speed is very high.