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Essential Metrics and Analytics for Small Business Owners

Are you feeling a bit overwhelmed by all the analytics and metrics out there for your website? Don’t worry, you’re not alone. It can be tough to know what to pay attention to and what will actually give you valuable insights into your business.

What’s the difference between KPIs and conversion metrics?

Let’s start with the basics: KPIs and conversion metrics. KPIs, or key performance indicators, are the metrics that are most important to your business and can give you a good idea of how well you’re doing. Conversion metrics, on the other hand, measure how well your website is converting visitors into customers.

By keeping an eye on your KPIs and conversion metrics, you’ll be able to identify areas where your business is struggling and make changes to improve them. For example, if your conversion rate is low, you might need to improve the design of your website or the copy on your product pages.

Key Performance Indicators (KPIs) are crucial for small business owners in e-commerce to measure and analyze the performance of their business. These metrics give insights into how well the business is doing and areas that need improvement. In this blog post, we will discuss various KPIs and conversion metrics that small business owners should pay attention to, and the methods to measure them.

Revenue is one of the most important KPIs for any e-commerce business. It gives an overall idea of how much money the business is making. It is important to track revenue on a regular basis and compare it with the previous periods. This will give an understanding of whether the business is growing or not. Additionally, revenue can be segmented by product, category, or region to understand which products or regions are driving the most sales.

Metrics to track

Customer Acquisition Cost (CAC)

This metric measures the cost of acquiring a new customer. It is calculated by dividing the total cost of sales and marketing efforts by the number of new customers acquired during that period. Understanding CAC is important as it helps determine if the marketing efforts are paying off and helps to set a budget for future marketing campaigns.

Bounce Rate

Website bounce rate is another important metric to pay attention to. It measures the percentage of visitors who leave the website after viewing only one page. A high bounce rate could indicate that something is wrong with the website, such as poor design or slow loading time, or that visitors are not finding what they are looking for. By keeping an eye on the bounce rate, small business owners can identify and fix issues that may be causing visitors to leave the website.

Conversion Rate

This measures the percentage of website visitors who complete a desired action, such as making a purchase or filling out a form. A low conversion rate could indicate that the website is not effectively converting visitors into customers. By measuring conversion rates, small business owners can identify and fix issues that may be preventing visitors from converting.

Other metrics

In addition to the above-mentioned KPIs, small business owners should also pay attention to metrics such as average order value, cart abandonment rate, and lifetime value of a customer. These metrics give insights into the customer’s behaviour and can help improve the customer experience.

Taking Action

A/B testing is a powerful method for measuring and improving conversion rates. It involves creating two versions of a page on the website and splitting the traffic between the two versions. By comparing the performance of the two pages, small business owners can determine which version performs better and make changes accordingly.

Remember, it’s not just about measuring, it’s also about taking action based on the data collected. But start by tracking it and then go from there. Try not to get overwhelmed!

If you need help tracking your metrics, understanding them and then taking action, get in touch.

Ana x

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