Analytics is a massive part of running a business online, and in this informative guide, we’ll be looking at the most critical metrics they provide for users.
When it comes to doing business (on the internet or anywhere else), information is king, as it gives those in charge to make decisions without having to resort to guesswork. Info about one’s own business and competitors is equally crucial, and the right mix of both is necessary for success.
In the field of ecommerce, you’ll find that information is even more essential than in other domains, and it can make or break a business in an instant. This is why ecommerce analytics tools like Google Analytics are so widespread in the industry, and also why we’ll be discussing them in today’s article.
Instead of looking at the analytics tools themselves, we’re going to cover what the analytics tools provide. More specifically, we’re going to go over the metrics that they offer, and we’ll give you a short overview of why each is important to an ecommerce business.
The Essential Ecommerce Metrics
Sources of Traffic
The first metric that many businesses will consider is the source of most of their traffic. As you would expect, this metric allows sites to see where their visitors come from. Whether the traffic comes from links, direct entry, or anything else, it will be displayed here.
Being aware of the source of traffic allows businesses to know where to prioritize their efforts so that they can increase the number of daily visitors. As you would expect, more daily visitors to an ecommerce site means more potential sales, so traffic sources are a pretty essential metric.
Bounce rate is another of the top metrics that businesses consider when going over analytics, and it represents the number of visitors who come to the site and then leave immediately. As you would expect, a high bounce rate is a bad sign for a business, and most ecommerce sites do their best to keep their bounce rate as low as possible.
A conversion is roughly the opposite of a bounce, in that a conversion occurs when a client makes a purchase on an ecommerce platform. As you would expect, the entire goal of getting people onto an ecommerce site is to make conversions, and a high rate of conversion is often the sign of a successful website, or at least one that is growing.
Keeping track of exit pages is a crucial way for businesses to improve their visitor retention, as it shows them the last page that a visitor was on before they left the site. Pages with a high exit rate will provide hints as to why visitors are going. Keep in mind that exit pages aren’t always negative, as a post-purchase page with a high exit rate is to be expected.
These are just a few of the most critical analytics for ecommerce businesses. We hope that this guide has managed to shed some light on the somewhat complicated world of ecommerce for you.