How to increase your sales?
eCommerce sales continue to grow year over year, reaching in 2018 at 2,356 billion US dollars . If you want to grab a piece from this pie you have to pay attention on data and focus on the needs of your customers. Getting to know the metrics and how that translate to your eCommerce requires experience in sales and marketing.
We listed below most important metrics that can help you to increase your sales:
1. Average Order Value (AOV) - knowing the average dollar value spend on each order can help you to plan pricing and marketing strategies to improve it. One way to improve AOV is by increasing the price. This requires a careful testing to evaluate the price sensitivity, you don't want to lose valuable customers.
2. Conversion Rate - Everyone wants a high conversion rate but what means high? The average conversion rate is 1% to 2%, so if you are above 2% or around there you are good.
3. Cart Abandonment Rate (CAR) - visitors often abandon the cart due to reasons like high shipping cost, checkout process, website errors, credit card not accepted or not ready yet to buy. If you have a high cart abandonment rate you may want to check that out, but keep in mind that average rate for eCommerce is 69.23%
4. Sales per day compared with same date from last month and an average sales per day for total sales. This will help you to understand if your are growing and your revenue is stable. It is a good metric to show you a daily minimum target to achieve.
5. Total Products Sold (last 12 months) - it is crucial for you to know what actually people buying the most from your online store. If Top 10 Products Sold translate directly to revenue, the bottom of this list shows you least performing products where you can take action either by promoting them or dropping them.
6. eCommerce website traffic - measures which traffic sources are driving visitors to your website. It's always good to have a variety of traffic sources to minimize the risk of loosing all visitors out of a sudden.
7. Bounce Rate - you should keep the bounce rate as low as possible, and that will translate in higher conversion rate. If your bounce rate is over 50% that should be definitely investigated but even when you have it at 30%. Here are some common reasons for high bounce rate: loading page takes to long, visitors landed in the website accidentally, unappealing content (ugly images, bad text), unfriendly for smart devices, etc
8. New vs Returning Visitors - it is important to understand the value of this metric. New visitors shows that more people are coming in your website (higher value for New Visitors shows a good results of marketing efforts), while Returning Visitors tend to have higher engagement, lower bounce rate and higher conversion rate - that leads to higher sales.
9. Social Media Traffic - plays an important role in your marketing strategy. Allows you to find the right target audience, drive traffic, engage with customers and ultimately generate sales. Is good to understand if your marketing effort on social media bring results and how you can you improve it.
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