Running an e-commerce store is not an easy feat. Not only do you have to worry about keeping your inventory stocked and take care of all the orders, shipping, and taxes, you also have to ensure the technical aspect of your website doesn’t cause slow loading times or server overload. At the same time, you also have to keep track of your success and ensure you stay profitable.
While the technical aspects can be taken care of with a managed hosting solution from your preferred provider, you also have to use some form of analytics to see how your customers are getting to your site and where they are going when they decide to leave.
Knowing what your visitors are doing on your page as well as what they did to get there helps you to judge what made you stand out for them. Knowing why they left your page and where they went after also helps you – by giving you insight to what made them leave.
Using analytics, you can gauge your successes and failures and as well as adapt to any changes that need to be made in order to improve your success.
Success is not always dollars and cents
If success is just dollars and cents, then there would never be any kind of improvements to any product or service. Success is the continual progressions from one plateau to the next. This is why most of us are so happy to make our first dollar, and again when we make our next goal.
However, we can’t really measure success without data that backs it up. And the best way to get that data is to use an analytical tool like MonsterInsights. Their complete goal is to help businesses make data-driven decisions.
What Are Data-Driven Decisions?
As a business owner, you want to know as many numbers as you can; how many visitors in a given period, how many were unique, how many conversions. You also want to know how they came to your site, and you want to know where they visited after.
You can then use the incoming numbers to justify your ad campaign expenditures. If you know you have a large amount of people coming in from one social media platform but not converting, you know that something is wrong. If they are searching for our particular service or product but don’t convert, you want to see where else they go to see if your pricing models are too much for their budget. When they go through each aspect of your site, you want to know what triggers caused them to dig further and convert or not.
All those bits of information are used to drive your decisions to improve your products, your site, your message, and anything else relating to your e-commerce website. Decisions we make based on received data from an analytical tool are data-driven decisions.
Judging success can be one of the hardest aspects of being a business owner. But, there are some metrics that you can measure to evaluate your success.
Overall Net Profit
While it can be easy to believe that an increase in sales and revenue signifies success, you have to look at the whole picture. Take a look at your profit margins and business expenses as well. Once you subtract the expenses from your revenue, you will get a clearer picture of your profits.
Visitors Conversion Rate
Every website owner wants their website to convert – ecommerce website owners included. If your conversion rate is low, then your website is not doing its job and you have customers falling through the cracks. This can sometimes be easily solved by having the right lead generation software, for example an exit popup plugin to capture visitors before they leave the page.
Again, an analytics tool can help you determine how well your visitors are converting as well as show you where they leave your website, which brings us to our next point.
Cart Abandonment Rate
Cart abandonment rate is the bane of e-commerce websites. You might be getting customers and plenty of visitors but if they abandon the cart never to return, your online store won’t be seeing any success. Don’t leave money on the table – make your checkout process as simple as possible and make all relevant information such as pricing, shipping, delivery estimates and contact information clear and highly visible. Use remarketing campaigns to your advantage and send emails and friendly reminders to those that bounce out before check out to create a conversion.
While these are just some of the ways you can measure your success, they are in no way an exhaustive list. However, metrics like these can be tracked using an analytical tool so adding one to your business tool arsenal is a must.
Once you have access to analytical tools, you can also see where your shortcomings are. One small improvement is to cut out as many losses as you can. You can track which ad campaigns offered a better ROI and consider ways of improving those models. You can also track which of your post types had the most success and improve the remaining post types to match the same theme.
Improvement works in small changes, and you should always be testing through A/B methods to formulate what exactly does work for your store unequivocally. This methodology has room to grow because there is no end to the improvements that can be made.
You can streamline your efforts in strengthening what does work for you over trying to make everything work for you. By focusing on your strengths, you can forge better relationships with new customers and strengthen the ones you have already cultivated with your current customers.
How you judge success is a personal ideal, not one that can be ruled by dollars and cents alone. All of us can strive for larger and better profit margins, but ultimately, we must also gauge our success by the loyalty we have garnered.
Improvements can be done in every way that you conduct business. You should always be looking for ways to improve your essentials; like your product or service, and how you relate to the people who use them. But if there is an aspect of your methodology that becomes more of a hindrance, then you must either decide to bolster that effect in a positive manner or change that aspect altogether.
However, you do need the insights provided by some analytical tool to help you make solid decisions that are data-driven and proven to work. By seeing what is currently happening, you can accurately evaluate your current success and find ways to build upon it and improve.