In ecommerce, successful marketing campaigns correlate directly to revenue growth. By keeping an eye on KPIs, you can tell which campaigns deliver for you, which don’t, and where to concentrate effort.
We like to encourage all of our clients—particularly the early stage merchants—to think hard about what might work. Then, start incrementally and measure often. Here are some tips for staying on top of your marketing. Use the tools in your analytics package—in most cases Google Analytics will work fine:
– Set up dashboards to track purchases by time of day, traffic by time of day, and real-time on-site traffic
– Measure time to first purchase and track lurking/browsing behavior
– Analyze the checkout funnel to determine where your audience tends to abandon
– Track goals (e.g., email registration, contact form, add to cart, checkout, success
– Track events (e.g., checkout “edit” button usage, deleted items in cart, added items to Wish List, zoom/enlarge product
“Goals” don’t typically help you make hard decisions unless you pair them with other data points. This way, they can help you add a dimension to other reports (e.g. “percentage of users with fewer than 2 minutes site who complete a goal” and “conversions who completed a goal”).
Once you gain better awareness of your business, you can fall into a workable routine. When you get there, look for continuous improvement by taking these steps:
– Create reports and commit to reviewing with regular frequency
– Sales – week over week, month over month, year over year
– Average Order Value by customer
– Rolling SKU Report (quantity sold by month over the past 24 months)
– Number of Customers – New, Repeat, Active, Inactive (more than 180 days since last purchase)
– RMA return reasons, condition
– RMA worst offenders (products most often returned)
– Payment method breakdown
Create customer segments and figure out how to target them (or not).
– Top 100
– Top 20%
– Best-selling region
– Worst-selling region
After gathering the data, compare your various marketing initiatives and look to increase your ROI. The beauty of ecommerce is that you can accurately measure and adjust with significantly less effort than with other channels. If you focus on continuous improvement, and you have the people, platform, and tools to execute; you’ll see revenue growth. We promise.