6 Metrics for Ecommerce Websites You Didn’t Know About

Keeping track of the number of visitors, orders, and the bounce rate has long been insufficient to effectively develop an online store. Pavel Kapelyushny, Deputy Head of Customer Development at Promodo shares six important metrics that eCommerce marketers and business owners should regularly monitor.

Percentage of missed impressions in the search

Let’s say people place 1000 “buy shirts London” queries per week. Out of these, your ad is triggered in contextual advertising 800 times. This means that the percentage of missed impressions of one ad is 20%. This information can be viewed in Google Ads and further tracked as a vital metric for your eCommerce website.

Which position the ad will reach in the ads section is determined by the principle of an auction: the higher the rating, the higher the position. Rating is a derivative between ad quality and bid per click. Quality is the relevance of a request to an ad, as well as an ad to a landing page.

google analytics

To understand what percentage of missed impressions is considered normal for a website, we need to pay attention to two factors:

  1. Competition. There are a lot of ads for the query “buy an iPhone”. It’s okay to lose 85% of impressions. But a rare query like “pizza delivery Hackney London is normal to lose less than 50% of impressions. A query is considered rare if it’s searched up to 200 times a month.
  2. Seasonality. An ad for winter tires in November should only lose 5-10% of impressions. In the summer, the indicator may be higher.

Share of impressions at the topmost position

In contextual advertising an ad can move up to the first, second, third position. This metric shows how many times it came first and can also be monitored in Google Ads.

This metric is especially important for eCommerce campaigns with a unique product or hot deal. Let’s assume that an electronics retailer offers an iPhone at the best price in the UK, and the offer is valid only this week. During all this time, the ad must take its place above the competitors.

It’s worth raising your ad budget bids until the impression percentage in the top positions reaches 90% or more. This will increase the CTR (the number of clicks on ads). This way a promotional offer will get the highest reach and generate more money.

Conversion of the funnel stages

My advice to owners of online stores is to write down every step of the user. For each website, the customer path from advertising to shopping cart will be unique. In the Behaviour Flow report group of Google Analytics, you can see how many people move from one step to another.

conversion of funnel stages

Let’s say, you’ve attracted 500 users to the “Men’s Shirts” category. 50% went to the product card, 3% of them added the product to the cart, 2% started placing an order, and only 1% completed the checkout. The values that are prior to checkout look good. But if half of those who started placing an order didn’t proceed to checkout, you have problems with the cart. Apparently, your customer had some inconveniences placing an order, or they did not find an answer to their question and had to leave the website. It’s high time to start searching the problem in the interface. Tracking conversions of the funnel stages is a necessary metric to monitor.

Percentage of sessions using search

There is the Site Search report group in Google Analytics. There you can see the percentage of customers using the website search and the page from which they access it.

If users often use the search bar, then you should probably work on your website interface. Maybe it’s difficult to understand how the items are placed in the catalogue. Check the pages that most often lead consumers to the  website search and figure out why they may feel uncomfortable.

In Google Analytics you can also look at the queries themselves. If people are looking for AirPods a lot, it might be worth bringing them to the home page. The normal share of website searches is 5-7%. If it’s higher, then maybe your website’s interface is awkward.

Call Centre Ratio

This is the ratio of purchases made through the online shopping cart on the website and through calls. It is very important to guide the user from the moment they enter the website to the shopping cart without making them ask  for details. If a consumer decided to call, then your website doesn’t help them solve their problem. In addition, such a client usually doesn’t leave his email, which prevents retaining them.

Selling industrial equipment is a peculiar niche, and you need to be ready to receive numerous calls, as buyers often need advice. But in the clothing niche, it’s better not to let the user call at all, making your website answer all the questions they may have. 70-100% of purchases made on the website is a good indicator for a small store. On some large websites, the phone number is not displayed at all, they only leave a live chat with a customer service employee.

LTV (Lifetime Value)

This is the frequency of repeated purchases per customer multiplied by the AOV. LTV is difficult to measure with basic analytics services. Collect this information for individual channels and product groups in the CRM system.

Having the information about return rates and AOV at your disposal, you can invest more money in lead generation. Let’s say you sell shirts for $35 with a 15% margin, that is, $5.25. This is the maximum that can be spent on attracting a lead, otherwise the business will be unprofitable. But if you consider that the client will return twice more paying $60 and $17 for their orders, then you can calculate the entire potential margin.

Now you understand that one client will spend a total of $100 with you. Now the margin from all transactions is $15.75, which means you can increase your advertising budgets. This will allow you to get even more profit and increase the turnover. In this model, you can move away from making money on the first deal.

The higher the LTV, the better. Work on increasing repeated purchases through emails and loyalty programs, and also try to increase the AOV of repeat purchases.


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6 Metrics for Ecommerce Websites You Didn’t Know About

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