How do I boost my online sales? How do I cut higher profit margin? How do I derive more traffic to my e-store?
These are few very common questions new online sellers often ask. Less they know, while as complicated as the answer might look, it’s rather quite simple and straightforward—by making informed decisions.
Shooting in the dark is a recipe for failure
More relatable to new online vendors, they often make crucial business decisions without following key facts, figures and trends—only to realize later that it was a poor choice. Maybe it looks like a right thing to do or maybe that’s what the others are doing, basing important decisions on intuitions and shooting in the dark is a perfect recipe for failure.
In fact, one of the foremost tips and advices of successful online sellers is to analyze sales data and other metrics to “know for sure” – whether eBay selling or having multiple storefronts – before making any move that could potentially steer your direction either to success or disappointment.
But on the flip side, while as important as it is to regularly evaluate database to map future strategies accordingly, there’s just too many metrics to care about—from sales KPIs like average margin, competitive pricing to Marketing indicators like unique visitor volume and page views per visit to customer service metrics like average resolution time and email counts.
It’s a big dark jungle of numbers that even the experienced sellers might find themselves lost in, let alone the new players. While many top sellers opt for professional help in this department, the new ones can’t really spare the cost.
So what the new online sellers should do? Do they spend hours gathering all the relevant (and irrelevant) data and then spend few more days to understand it all?
Sure it can be quite rewarding if they know all their metrics well, decision-making would become much efficient. However, to keep things sweet and simple at the initial stage and help them save their time for other important tasks (inventory management, store optimization, marketing, and more), here are 5 key metrics the new online vendors should prioritize atop-
- Daily sales– You won’t make grand sales right from get-go. It’s going to take time to accelerate. So it makes more sense to not to be obsessed with your daily sales; something that everyone recommend. However, to have realistic expectations of future growth and to conduct A/B testing with your strategies, you should check the amount of the sales you’re making every day and then compare the data week-on-week for a bigger picture.
- Conversion rate– Don’t get too hung up on your stores’ daily traffic. Even when high, you might not be making as much sales. Keep an eye open to the conversion rate—the number of visitors to the number of sales. When down, know something on your store isn’t right and needs fixing, whether the overall aesthetic, content or something else.
- Customer acquisition cost (CAC)– It’s how much are you spending to gain new customers or to make one sale. More relevant when you’re spending on advertisements and other promotional efforts. If your CAC is too high, you need to bring it down to cut higher profit margin.
- Shopping cart abandonment rate– How many people are actually adding your products in their shopping cart but aren’t actually buying? This is one important metric that shows the loopholes on your store, in your transition steps; maybe you aren’t offering the right payment options, maybe the potential customers aren’t sure of their details’ security. Identify the problem and fix it!
Did you know the average shopping cart abandonment rate for online retailers is 67.91 percent?
- Email CTR– Running email campaigns parallel to your sales strategy is one of the most important tasks. For customer retention, having a winning post-sales follow-up is important and this is where emails come in. You must communicate and engage your customers, and push them (sensibly) for another purchase. But what if you’re sending them emails but they aren’t actually reading it—and the ones who are, in fact, reading, aren’t clicking on the given links (your CTA)? So it is important that you know the Click-Through-Rate (CTR) of your emails. If it’s low, there’s something wrong with the content of your email.
Of course collecting and analyzing even these selective metrics would be no less easy. It’s going to take some time and a bit of brainstorming. To save your time and more stress, you can sign up to e-commerce solution—more so if you’re selling on Walmart.com, Amazon and numerous other marketplaces and storefronts together. Aside helping you handle all your backend tasks quickly and smoothly, the top ones also provide with regular sales report. It’s much detailed and easy to understand, which can save you more of your time.