The right e-commerce tools will allow you to access dozens of online payments metrics to help you monitor and optimize your small business strategies. These metrics provide insightful knowledge into business operations as well as nuanced consumer demographics and behaviors. There are six different e-commerce metrics that every small business owner should be aware of and learn to utilize.
- Conversion Percentage: This shows you how many of your visitors have made specific actions on your e-commerce site. Depending on what you are tracking this can apply to a myriad of things including sales, referrals, and subscriptions. This metric can be customized through most POS systemsand web-based platforms.
- Cost Per Acquisition: Most advertisers would consider this the most valuable metric in terms of paid marketing. Cost per acquisition (CPA) is calculated as cost divided by the number of acquisitions. So for example, if one spends $150 on a campaign and gets 10 “acquisitions” this would give a cost per acquisition of $15. Finding this metric varies on the platform you are using to promote your business.
- Bounce Rate: The bounce rate refers to how long a visitor stays on your site before clicking off. This is quite useful to look at when looking through Google Analytics, or mobile analytics. A bounce rate between 25%-40% is considered excellent for any website. This means users are engaging more with your content and have more opportunity to make purchases. Having a low bounce rate also helps improve SEO (search engine optimization). You can find this metric on the dashboard of your website generator, Google Analytics, or some POS dashboards.
- Average Ticket Size: This metric gives you the base for your spend and profit. Average ticket size also helps you plan for your inventory and set up promotions based on the predictability of your consumers.
- Loyalty and Gift Cards Metrics: Beyond making the most of your sales and promotions, loyalty and gift programs can tell you a lot about your consumers. You can see how many users respond to your promotional efforts through click-through rates, subscription rate, use of promotional codes and more. These programs can provide great insight into your customers' purchasing dynamics.
- Shopping Cart Abandonment: This metric is absolutely critical to your e-commerce efforts. This shows you how many people intend to purchase, but don't follow through with the purchase. This can happen due to high shipping costs or not including a specific payment option. Making changes based on this metric will help you ensure that consumers follow through with their intended purchases.
These metrics are important, but each industry will find there are key indicators that optimize their reporting. Setting up the right equipment and software can help business owners save time and money by making accurate assessments and projections. Utilize some of the best tools in e-commerce by partnering with TransNational Payments. We’ve been using our 20 years of expertise to pair small business owners with the right tools to be successful in over saturated markets. Fill out the form below to request a free quote and consultation today.