Author: Aaron Agius / Source: Entrepreneur According to latest UNCTAD estimates, the global ecommerce market is worth $22.1 trillion, and
According to latest UNCTAD estimates, the global ecommerce market is worth $22.1 trillion, and it’s only getting bigger. By 2019, approximately 80 percent of internet users will make at least one purchase online during the year.
Ecommerce represents a great opportunity to boost your sales revenue and connect with new buyers. However, there are numerous challenges that need to be addressed if you want to be successful in the ecommerce marketplace.
Driving the right type of buyers to your site and getting them to consistently convert at a profit is a complex process. You’ll increase your chances of success if you meticulously track your customer metrics and continuously make improvements according to the data.
Here are the five most important customer engagement metrics you should track if you want to prosper with ecommerce.
1. Cost per acquisition.
When using pay-per-click (PPC) advertising to drive traffic to your ecommerce site, it’s important that you don’t destroy your profit margins.
After you subtract your manufacturing and shipping costs from the retail price of your product, you will be left with a figure that indicates pure profit. As long as your cost per acquisition (CPA) — the money it costs to acquire one new customer — is less than this number, you’re running ads at a profit and can think about scaling your campaign. Fortunately, you’re not going to go bankrupt if a $5 per day Facebook ad campaign doesn’t convert at a profit. Start all of your campaigns at a low ad spend, delete the losers, and scale the the winners.
You can lower your CPA by implementing the following steps:
2. Conversion rate.
It’s critical that you track your conversion rate — the percentage of people who arrive on your site who go on to become paying customers.
If you’re able to drive a lot of traffic to your website, but very few visitors convert, that’s not good. It can be far more profitable to drive a smaller amount of traffic to your site and ensure each visitor is…