Ecommerce Analytics vital for online business success. What KPIs to track? What metrics really measure business performance?
In order to talk about LTV, let’s take a look at the bigger picture first.
eCommerce is obviously booming. More and more people are jumping on the online retail wagon and this is all good because it pushes the whole industry forward.
But there’s the downside that almost no-one talks about, although everybody’s struggling with it.
It’s the fact that more and more businesses are fighting for the customer. Which leads to one thing – increased CAC (customer acquisition costs).
It’s obvious that it’s never been more expensive to acquire a customer. But the reality is it’s never going to be cheaper to acquire one, either.
High CAC is not the issue, though. Low LTV is.
It’s very trendy to talk about data-driven marketing. Everybody’s claiming it’s the way of the future and almost everybody’s doing it.
Or are they?
Data-driven marketing is one of those buzzwords that sound awesome and intimidating at the same time. It looks like it’d make you millions, but people can’t exactly explain what it is.
Importing new products and editing the existing in Magento sucks. It’s ok, you can admit it.
I doubt anyone enjoys exporting and importing files back and forth. It takes SO MUCH TIME.
It’s a huge and dreary task, yet you can’t do it sloppily – SEO, customer experience, conversions, all depend to a large extent on product descriptions and details.
Conversion funnels are one of these concepts that everyone knows about and uses, but doesn’t explore in detail. Every online store has a conversion funnel in place and yet we rarely break it down to the core.
Why should we? Because that’s probably the most important mechanism you use for getting sales – advertising, on-site-experience, engagement and remarketing are all parts of this process.
In this article, we break down examples of eCommerce conversion funnels and show you what to look for at each stage. This process should be a major part of the eCommerce performance analysis and reporting you do. This way, you’ll not just detect when something breaks but catch the particular part of the funnel that’s underperforming.
Analyzing eCommerce data sounds scary and discouraging. You probably don’t want to spend your days looking at trend charts, you want revenue coming in.
One eCommerce business owner told me once that he only started looking at his performance numbers when he got a family and had to be more responsible. Well, it’s a miracle his business even survived.
Ecommerce data analysis shows everything that’s working and not working with your online store. Without it, you’re driving with your eyes closed. That’s scarier than some numbers and ratios.
One of the fundamental approaches to growth applied by ecommerce businesses is the AARRR framework. Entrepreneurs stick to it because it’s simple, effective and logical.
AARRR stands for acquisition, activation, retention, referral, revenue. The basic idea is that these 5 aspects are all you need to work on to grow sustainably.
We talked to ecommerce businesses about how they go about those metrics – and found fascinating stories. Now, we’re sharing one of them with you. Let’s see Referrals in action.