Every online business needs to increase conversion rate. Here are 9 Key performance indicators to boost conversion rate for your Ecommerce business.
Conversion rate can be the number of visitors who bought at least one item or number of visitors who ended up adding at least one item to shopping cart. To keep things simple we will call Conversion rate as the number of registered users who ended up buying at least one item.
7 Key performance indicators to boost conversion rate
- Hourly, daily, weekly, monthly, quarterly, and annual sales - This tells you how your efforts to boost conversion are taking effect. You know the time when you made the changes to your site or catalog. You can track how it affects sales over time. Also, you can tap into seasonality or periodicity in sales to boost conversion rate.
- Average order size (sometimes called average market basket) – You can measure this in dollars, euros, etc instead of counting number of items bought. This tells you the purchasing power or preferences of your customers. Accordingly, you can increase products to suite their preferences.
- Conversion rate – This needs to be tracked over time obviously. You can track conversion rates by gender, location, age, etc to understand how your customers are responding to your efforts to boost conversion.
- Shopping cart abandonment rate - This is the percentage of registered users who added at least one item to shopping cart but did not end up buying it. Tracking this over time gives an idea of user behavior on your website. You can also track this by gender, location , age, etc to understand customer behavior better.
- Product affinity (which products are purchased together) – This will help you create custom promotional offers for products which are purchased together thereby increasing conversion. Also you can place them next to each other on your website to increase chances of a sale.
- Product relationship (which products are viewed consecutively) – Similar to the above metric, this also gives an indication of the products that the visitors like to see together. So you can place them side by side and increase the chances of a sale.
- Competitive pricing – This can be done in 2 ways. Price your products competitively compared to your competitors. Or place competitive products together for the customers to pick.
You can set monthly goals for each of these key performance indicators to boost conversion rate. Tracking them daily, taking action based on periodic review will get you there over time.
To give this a try on your own data, you can try Ubiq Analytics for free.