{"id":28,"date":"2019-08-07T15:30:59","date_gmt":"2019-08-07T15:30:59","guid":{"rendered":"https:\/\/itsonmedia.com\/blog\/?p=28"},"modified":"2024-10-09T14:12:13","modified_gmt":"2024-10-09T14:12:13","slug":"the-importance-of-metrics-in-the-e-commerce-industry","status":"publish","type":"post","link":"https:\/\/itsonmedia.com\/blog\/the-importance-of-metrics-in-the-e-commerce-industry\/","title":{"rendered":"The importance of metrics in the e-commerce industry"},"content":{"rendered":"\r\n<p>In <a href=\"https:\/\/www.itsonmedia.com\/web-design-and-development\/\">e-commerce<\/a> business it is difficult to analyze the market, there are multiple factors involved but the final decision is based on metrics. Metrics describe each parameter including critical factors, so it is easy to understand the store\u2019s performance and push up those lower factors. There are enormous metrics available to inspect, but a small number of them displayed the actual status of your business, and it will definitely help you to increase those metrics if you identified them on time. Let\u2019s have a look at which metrics should be monitored all the time to improve your store\u2019s trade.<\/p>\r\n\r\n\r\n\r\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69d05fdc2d0f7\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69d05fdc2d0f7\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/itsonmedia.com\/blog\/the-importance-of-metrics-in-the-e-commerce-industry\/#Look_up_your_CRO\" >Look up your CRO<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/itsonmedia.com\/blog\/the-importance-of-metrics-in-the-e-commerce-industry\/#Email_Listing\" >Email Listing<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/itsonmedia.com\/blog\/the-importance-of-metrics-in-the-e-commerce-industry\/#Know_Your_CLV_customer_lifetime_value\" >Know Your CLV (customer lifetime value)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/itsonmedia.com\/blog\/the-importance-of-metrics-in-the-e-commerce-industry\/#Maintain_Customer_Acquisition_Cost_CAC\" >Maintain Customer Acquisition Cost (CAC)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/itsonmedia.com\/blog\/the-importance-of-metrics-in-the-e-commerce-industry\/#Invest_Wisely\" >Invest Wisely<\/a><\/li><\/ul><\/nav><\/div>\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Look_up_your_CRO\"><\/span><strong>Look up your CRO <\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\r\n\r\n\r\n\r\n<p>The conversion rate is the backbone while tracking customer&#8217;s behaviors. Through CRO we identify how many visitors actually make a purchase. It is on top priority while considering e-commerce metrics.\u00a0 There are many tools available regarding analytic checks, although you can do it by yourself, simply taking the number of conversions dividing by the number of total visitors.<\/p>\r\n\r\n\r\n\r\n<p>Your site is technically surrounded with small micro conversions and move towards macro-conversion from a purchase point of view. Conversion is varied page to page when a visitor goes through the category page for some products that will be a micro-conversion because it\u2019s a narrow way and probably a sale.<\/p>\r\n\r\n\r\n\r\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Email_Listing\"><\/span><strong>Email Listing <\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\r\n\r\n\r\n\r\n<p>Another important aspect is email marketing, online businesses sustain through good customer relationship. It\u2019s a direct approach to engage your customers. Many eCommerce stores drive their sale up to a 10% increase with emails. This is ideal for marketing as it doesn\u2019t need traffic like other social media platforms. Create your email list from previous and existing customers. Try to get many as you can, it is not important to keep only customers. Once they subscribe to your email, keep a good interaction with them through promotional deals and turn them as your customers.\u00a0\u00a0<\/p>\r\n\r\n\r\n\r\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Know_Your_CLV_customer_lifetime_value\"><\/span><strong>Know Your CLV (customer lifetime value)<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\r\n\r\n\r\n\r\n<p>CLV is a value check matric to classify how much you earn from a consumer over the customer lifetime. Like the possible earning is about $30 via four times through customer lifetime, your CLV is $120.\u00a0 CLV is important when you want to calculate how much you spend to attain a consumer and how much you need more to hold them.\u00a0<\/p>\r\n\r\n\r\n\r\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Maintain_Customer_Acquisition_Cost_CAC\"><\/span><strong>Maintain<\/strong> <strong>Customer Acquisition Cost (CAC)<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\r\n\r\n\r\n\r\n<p>Acquire new customers, must cost something. These costs will be treated at customer acquisition cost CAC.\u00a0 When it comes to your business profit, your acquisition cost will be below from your CLV. Once you maintain this cost-profit average will be raised from every new consumer. In <a href=\"https:\/\/www.ecommerceceo.com\/start-ecommerce-business\/\" target=\"_blank\" rel=\"noopener\">the e-commerce business<\/a>, it is hard to balance CAC, but later on, you can gradually increase your sale. In order to maintain your marketing budget, it is preferred to utilize free marketing like social media, content marketing, and email marketing.<\/p>\r\n\r\n\r\n\r\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Invest_Wisely\"><\/span><strong>Invest Wisely <\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\r\n\r\n\r\n\r\n<p>Once your e-commerce starts generating valuable leads and most of your visitors are more possibly turn into a customer. Then there is no need to expend lots of money on campaigns and marketing purpose. Instead of marketing, start investing in the advancement of the store and make it a reliable source for online shopping<\/p>\r\n","protected":false},"excerpt":{"rendered":"<p>In e-commerce business it is difficult to analyze the market, there are multiple factors involved but the final decision is based on metrics. Metrics describe each parameter including critical factors, so it is easy to understand the store\u2019s performance and push up those lower factors. There are enormous metrics available to inspect, but a small [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":30,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[23],"tags":[],"class_list":{"0":"post-28","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-ecommerce"},"_links":{"self":[{"href":"https:\/\/itsonmedia.com\/blog\/wp-json\/wp\/v2\/posts\/28","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itsonmedia.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itsonmedia.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itsonmedia.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/itsonmedia.com\/blog\/wp-json\/wp\/v2\/comments?post=28"}],"version-history":[{"count":5,"href":"https:\/\/itsonmedia.com\/blog\/wp-json\/wp\/v2\/posts\/28\/revisions"}],"predecessor-version":[{"id":1632,"href":"https:\/\/itsonmedia.com\/blog\/wp-json\/wp\/v2\/posts\/28\/revisions\/1632"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/itsonmedia.com\/blog\/wp-json\/wp\/v2\/media\/30"}],"wp:attachment":[{"href":"https:\/\/itsonmedia.com\/blog\/wp-json\/wp\/v2\/media?parent=28"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itsonmedia.com\/blog\/wp-json\/wp\/v2\/categories?post=28"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itsonmedia.com\/blog\/wp-json\/wp\/v2\/tags?post=28"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}