Comments on: 29 Ecommerce Metrics & KPIs to Measure to Drive 10X Growth in 2018 [Downloadable Key Metrics Included] https://www.bigcommerce.com/blog/ecommerce-metrics/ Ecommerce Blog delivering news, strategy and success stories to power 2x growth for scaling brands. Mon, 14 May 2018 09:36:00 +0000 hourly 1 https://wordpress.org/?v=4.9.6 By: Tracey Wallace https://www.bigcommerce.com/blog/ecommerce-metrics/#comment-334247 Thu, 15 Dec 2016 16:16:00 +0000 http://www.bigcommerce.com/ecommerce-blog/?p=6794#comment-334247 Yep — CRO (conversion rate optimization) is crucial. As Tim Ferris says, why send traffic to your site if you’re just going to lose fish through the net? You need to make sure you are converting as many as possible — otherwise, the traffic is worthless.

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By: Kathrina https://www.bigcommerce.com/blog/ecommerce-metrics/#comment-334190 Sun, 27 Nov 2016 04:20:00 +0000 http://www.bigcommerce.com/ecommerce-blog/?p=6794#comment-334190 There’s a lot of flux there; ecommerce has a far lower average conversion rate, especially compared to finance. However, check out the Top 10% Conversion Rates. They’re 3 to 5 times higher than the average for each industry, so we can see that the rule holds across the board, regardless of industry.

The flip side, of course, is that if you’re in a high-performer industry like finance, 5% really isn’t a fantastic conversion rate. If you’re comparing yourself to the average across all industries, you’re really deluding yourself into thinking you’re doing better than you are. In truth, the top 10% are doing almost five times better.

Even if the average conversion rates are lower in your industry, the top advertisers are outperforming you by 3-5x or more. http://www.cysppc.com/blog/2016/7/5/lead-gen-puzzle-a-digital-advertising-story-about-catching-it-quickly

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By: GwenW https://www.bigcommerce.com/blog/ecommerce-metrics/#comment-333209 Thu, 21 May 2015 20:06:00 +0000 http://www.bigcommerce.com/ecommerce-blog/?p=6794#comment-333209 Such a great post. Thanks! http://www.searchermag.net/

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By: Tatakos https://www.bigcommerce.com/blog/ecommerce-metrics/#comment-333177 Tue, 05 May 2015 08:56:00 +0000 http://www.bigcommerce.com/ecommerce-blog/?p=6794#comment-333177 Thank you. You really helped me!

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By: Thomas Martins https://www.bigcommerce.com/blog/ecommerce-metrics/#comment-332994 Mon, 23 Feb 2015 12:41:00 +0000 http://www.bigcommerce.com/ecommerce-blog/?p=6794#comment-332994 @Pavan Sudarshan

The great thing about e-commerce is that as customers start coming back, your selling increases and your cost, typically, remains low. This is why its really important to start getting customers to buy more and keep buying i.e. focus on up sell, cross sell and repeat sales.

You are right man.
Some kind of basis of multichannel retailing, you should check this infographic http://www.options-mailorder.co.uk/news.php?id=48

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By: Kris https://www.bigcommerce.com/blog/ecommerce-metrics/#comment-332928 Sun, 25 Jan 2015 00:59:00 +0000 http://www.bigcommerce.com/ecommerce-blog/?p=6794#comment-332928 Do you need a profitable PPC campaign? Watch the video on the website below to find out why most PPC campaigns suck & lose you a lot of money & discover specific steps you can take right now to see immediate increases in traffic, leads, and profits off your PPC campaigns.

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This video will also show you what the most common PPC mistakes are. Stop wasting your clicks. Have your PPC Ad needs met by teaming up with the PPC experts.

Also listen to some very simple yet powerful tricks that can skyrocket your PPC campaigns.

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By: Prashant Rohilla https://www.bigcommerce.com/blog/ecommerce-metrics/#comment-123733 Sun, 01 Sep 2013 20:22:51 +0000 http://www.bigcommerce.com/ecommerce-blog/?p=6794#comment-123733 I think we can generalise LTV as a returning customer. Obviously if percentage of returning customer is high, my customer acquisition cost will be then divided among new users, means more customers. My CAC is same or can be more, but my customer base will increase. Now my Already loyal customer will drive my AOV, so should we have something for them also. This is what many E Commerce companies ignore , they acquire a customer but do not care about him anymore, instead focus on acquiring new ones. I guess its all calculation increasing customer base is one thing but Identifying the ones within the base who are driving the growth is important. We may consider it as Digging deep into customer analytics. But offering something to returning customer can drive AOV and LTV to new heights.

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By: Pavan Sudarshan https://www.bigcommerce.com/blog/ecommerce-metrics/#comment-118385 Wed, 21 Aug 2013 04:56:47 +0000 http://www.bigcommerce.com/ecommerce-blog/?p=6794#comment-118385 Hi Ed,

Adding on to what Jessica has said, let me try and simplify what you can measure easily. If you see what LTV is:

LTV = Total Money Customer Spent (CLC) – Cost of Acquiring Customer (CAC)

This looks very similar to:

Profit = Selling Price – Cost Price

This is not a coincidence. Lifetime Value, in a way, is a profit indicator

The great thing about e-commerce is that as customers start coming back, your selling increases and your cost, typically, remains low. This is why its really important to start getting customers to buy more and keep buying i.e. focus on up sell, cross sell and repeat sales.

Apart from the tools Jessica mentioned, NudgeSpot (http://www.nudgespot.com) was built with these metrics as the building block. So, you can use some tool like NudgeSpot to do this.

If you don’t want to use a tool yet, just focus on the simple profit like equation and make sure you grow it.

Hope that was helpful.

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By: Jessica Malnik https://www.bigcommerce.com/blog/ecommerce-metrics/#comment-118096 Tue, 20 Aug 2013 17:52:53 +0000 http://www.bigcommerce.com/ecommerce-blog/?p=6794#comment-118096 Great question, Ed! You can get a lot of this information right from the statistics panel within your control panel. In addition, you can integrate with Sumall and Google Analytics (both free) to fill in many of the gaps.

If you aren’t a data person, all this data can seem overwhelming. The one number you should pay the most attention to is lifetime value (LV). This is the difference between the total money that a customer spends on your store and the cost of acquiring this customer (CAC). The higher the lifetime value, the better: i.e., you want your LTV to keep increasing. The cost of acquiring the customer should take into account all of your marketing efforts. (i.e. Google adwords budget, Facebook ads, etc.)

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By: Ed Mandell https://www.bigcommerce.com/blog/ecommerce-metrics/#comment-118068 Tue, 20 Aug 2013 16:40:10 +0000 http://www.bigcommerce.com/ecommerce-blog/?p=6794#comment-118068 Nice article, any suggestions on how to go about measuring these numbers?

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