Top 5 Ecommerce Website Marketing Metrics that Determine Success


At present, the discussions about “strategic optimization” in the Ecommerce are revolving around the one thing that is the customer. Businesses asking themselves many questions like “what actually customers want, what we should offer to customers for attracting them into our site”. We know that running a business, especially online is a complex and multifaceted task. Below we have given 4 key metrics upon which you must focus and concentrate to ensure continued success of your online business.

1) Understand the Customer’s Lifetime Value Metrics: Several online businesses calculate their return on investment (ROI) on single sales, but experts suggest that return on investment should be focused on the lifetime value of a customer. You can determine the lifetime value of a customer by this formula:

Customer Lifetime Value (CLV) = resent Value (Average profit PER year x Number of years) – acquisition costs.

For calculating accurate profit, you have to measure your sales margins with inventory accurately. You can find the acquisition cost; just divide acquisition spending by the total number of customers acquired from your marketing advertisement or campaign. After calculating it, you can put all the values in the formula for calculating CLV. Remember, CLV is very important because it is more cost effective to hold an existing customer over acquiring a new one.

2) Determine the Marketing Rate of Return (ROI) Metrics: Most of the e-commerce websites depend on search engine marketing to gain traffic and visibility. Generally, companies do mistakes by calculating return on investment (ROI) on one purchase instead of customer’s lifetime value. So, determine the margin per order and the lifetime value of customers. You will know about   your marketing efforts and how can you improve them by determining marketing ROI. You can calculate this by following formula:

After determining Marketing (ROI), you can also check whether your Customer Lifetime Value CLV is lower, higher, or the same as, than your average acquisition cost by comparing the value of Marketing (ROI) with the customer lifetime value.

3) Monitoring Customer Satisfaction: There are lots of tools available including Google Analytics and internal software to know and understand online customers. You can track demographics, purchase history and psychographics behind your visitors or customers with the help of these tools. After, collecting the information, you can compare it with your target audience, and can also change strategies to improve the result. Talking and listening to your customers is the best way to learn whether customer needs are being fulfilled by your current offering.

4) New Visitors/ Customers Conversion Rate: Most of the e-tailors seldom differentiate between their return and new visitor conversion rates. You can see a very clear picture of what actually happens when first-time visitors come to your site by isolating the conversion rate of a new visitor.

5) Determine the Conversion rate of Return Visitors: We know that 95 % not buy anything on their first visit. However, if they are coming back your site, then it is really the best thing for your business.  You can see how likely you are converting your return visitors into potential customers by analyzing your return visitor conversion rate.

Conclusion: There are numerous keys Ecommerce Metrics to measure the success of an enterprise ecommerce site. If you are going to open an online business or trying to grow your business, then implementing these metrics for getting success.


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