Thanks to free online resources such as Google Analytics, today's businesses have access to a wealth of information to fine tune their digital marketing strategies. The challenge is that with so much information available, it can be overwhelming for marketers to know which metrics they should be tracking.
Every Digital Commerce Marketer Must Stay On Top of Metrics
With so much business being conducted over the internet (e-commerce sales grew by 23 percent in 2017), taking your business online is a no-brainer. For most companies, establishing an online presence means creating a website, joining social media platforms, running email marketing campaigns, and so on. Where many business go wrong, however, is neglecting to use metrics to track their progress.
Your B2C business has so many tools at its disposal to proactively measure the progress of your digital marketing efforts. Simply assuming that your inbound marketing strategy is working because you're experiencing an influx of revenue won't cut it or substantiate long term results. By regularly tracking metrics, you can quickly weed out mistakes while also investing more in areas of your digital marketing strategy that are benefiting your business the most.
4 Key B2C Digital Marketing Metrics to Watch
From a B2C marketing perspective, here are four digital marketing metrics that you absolutely must be tracking:
1. Conversion Rate
The single most important metric that any business must keep tabs on is its conversion rate. To calculate this KPI, divide the number of sales by the number of visitors that your website earns.
Regardless of the industry that your business is in, the average conversion rate that websites produce is between one and two percent. To put this statistic into perspective, if your website earns 5,000 visitors, you would earn 50 conversions assuming a conversion rate of one percent. Small fluctuations in your conversion rate can have a big impact on your bottom line, so it's critical that your business stays in-the-know with your conversion rate. A website conversion rate above two percent is a good baseline goal for your online sales.
2. Average Order Value
To have a successful ecommerce website, you need to be aware of how much people are spending on average when making a purchase from your website. To calculate the Average Order Value (AOV), divide revenue by the number of orders that you've received over a set period of time.
Staying on top of your AOV will help you to unlock some powerful information about the value of your customers and your gross margins. This metric will also help you to determine if you're better off making fewer, larger sales or several smaller sales. Being privy to your AOV will allow you to cater your digital marketing strategy to best meet your customers' and business's needs.
3. Website Traffic
Website traffic has always been an important metric for businesses to be aware of as a website serves as the foundation for a brand's online presence. However, it's no longer enough to just track if a website attracts a healthy amount of traffic.
As the digital marketing landscape has become more complex, you must dig deeper into your website traffic metrics. Areas that you need to keep an eye on include the amount of time people are spending on your website, how many pages people are viewing during a visit, and whether your traffic is from unique or returning visitors. Being in tune with these metrics will help you to identify areas on your website that need improvement and empower you with information to amplify your content marketing strategy.
4. Cart Abandonment Rate
Some of the most common reasons why people choose to abandon items in the online shopping cart include unexpected fees, shipping costs, and confusing forms. By keeping an eye on your cart abandonment rate, you'll have a better understanding of how your commerce website is performing, thus giving you the ability to improve areas that may be pain points for your website visitors. By finding ways to streamline the online checkout process, you'll be able to diminish your cart abandonment rate.
Whether you're a B2C or B2B business, both will benefit by focusing on these four commerce marketing metrics.
How New York Ave Can Help
If you're interested in learning more about commerce marketing or proven solutions to enhance your online store experience, we can help. Our creative team at New York Ave can help you to build a personalized digital marketing strategy to make your business more memorable with to your audience. By pairing our understanding of human psychology with our wealth of experience for implementing proven solutions for businesses, we can help you to design an intuitive commerce website that functions for your business and your customers.
Our team at New York Ave is here to help with all aspects of your digital marketing strategy, including brand development, website design, search engine optimization, and digital marketing strategy. Contact us to get the conversation started today!