E Commerce
E Commerce
E Commerce
2 Dec 2020
7 key metrics to track the success of your website
1 Website traffic
• unique visits tells you how well you attract new visitors, while repeat visits
tells you how well you retain visitors.
• Now, in an ideal world, unique visits and repeat visits will grow
simultaneously, giving you a healthy increase in total visits.
• what if total visits growth is driven entirely by repeat visits?
• In such a scenario, the metrics are telling you that you are successfully building a loyal
following (awesome!), but you aren’t doing enough to attract new visitors.
• You should be adopting new strategies to improve your discoverability, which will bring
new eyes to your website.
7 key metrics to track the success of your
website
2. Traffic sources
• Organic Search: traffic coming via the search engines
• Referral: traffic from another website
• Direct: traffic typing your domain into the browser
• Social: traffic from social media
3 Bounce rate
• The bounce rate metric, displayed as a percentage, tells you how many visitors leave your
website immediately after arriving—Google defines these as “single-page sessions.” The lower
your bounce rate, the more visitors there are sticking around to enjoy your website, and
(hopefully) converting
• Bounce rates do differ based on the type of website—blogs will differ from landing pages which
will differ from eCommerce stores. You also have to apply some logic to the situation.
• “when I changed my website from a multi-page site to a one-page site, my bounce rate declined.
No need to panic, though, as the change is easily explained: my information is all on one page
now, so visitors have no need (and are unable) to click around my site.”
• It doesn’t tell you why they are leaving—
• common reasons for a high bounce rate include: slow load times, broken websites, bad first
impression (poor website aesthetics), and badly targeted keywords.
7 key metrics to track the success of your website
4 Top pages
• If you head over to the Behavior section of Google Analytics, you’ll be able to
see your best performing pages in terms of traffic volume—Analytics displays
the number of pageviews, and how those pageviews look as a percentage of
total pageviews across the entire website.
• Knowing what pages receive the most traffic is hugely important because it
gives you real-world data showing what your audience responds to. If you
experiment with different types of content, this is where you can begin to
analyze what’s working, and produce more of the material your readers like.
• You could also look at the number of social shares per page as an indicator of
a strong article.
7 key metrics to track the success of your website
5 Conversion rate
• Conversion rate is another crude top-level metric, but it’s arguably the most
important metric of all as it can have a significant impact on your site’s profitability—
if you can increase your conversion rate from 1% to 2%, your profits double
• Total conversion numbers are important, but it’s the conversion rate that tells you
how well you encourage your traffic to perform a desired action.
• Your conversion rate is easy to calculate: Unique Visitors / Conversions
• an eCommerce store might have three conversion goals:
• A sale (most important!)
• A subscriber to an email list
• A social share (least important, but still valuable)
7 key metrics to track the success of your website
• For a start, direct traffic is the most valuable traffic source for this website.
Direct traffic is usually driven by loyal visitors, so with this in mind, this
website should take steps to encourage loyalty and repeat visits.
• Similarly, social traffic is the least effective, so while receiving free traffic
from social media is always nice, this website would be crazy to chase it too
hard.
• You can also see that referral traffic converts 250% better than search
engine traffic. This is an indicator that the strategy for generating referral
traffic is good (you’re being linked to from the right places) but your search
engine strategy is less effective (you’re targeting the wrong keywords).
7 key metrics to track the success of your website
7 Customer’s lifetime value
• This is useful to know, but ignores the fact that when a customer becomes part of your sales
funnel, they are more likely to buy again. The lifetime value metric addresses this by
factoring the customer’s future purchases into the equation.
• Take a membership website, for example. (Admittedly the nature of a membership website
means they are more likely to be aware of their customer’s lifetime value.) If membership
costs $100 per month, and the average customer remains a member for 6 months, then
each customer is worth, on average, $600 to that business.
• This is well worth knowing, as it will help this website to allocate their resources more
effectively—if they use paid advertising, they could afford to spend more to attract
customers based on the $600 lifetime value rather than the $100 transaction value. This
higher lifetime value means they can spend more on advertising and promotion, will attract
more customers, and will allow their business to grow more quickly—what’s not to like!
Demographics