To understand your online business’s financial health, you need to track key e-commerce metrics — quantifiable factors that provide performance insights and reveal areas for growth and improvement. In fact, e-commerce accountants rely on these very metrics to accurately assess your business’s success across crucial areas like marketing, sales, and customer retention. By consistently monitoring these indicators, our e-commerce accountants help you identify opportunities for data-driven growth and refine your strategies.
But what exactly should you be tracking? To help you get started, here are some essential e-commerce financial metrics to track for success:
- Conversion rate – This metric directly reflects your sales efficiency because it shows the percentage of visitors who become paying customers. A higher conversion rate means more sales. Though the average hovers around 3%, your target should depend on your specific industry and sales channels.
- Bounce rate – This is your website’s “stickiness.” It can tell you how many visitors visit your page and then leave or “bounce” to go to another website right away. A high bounce rate signals potential issues with your content or user experience. To lower it, focus on creating compelling content and improving site navigation.
- Cost of customer acquisition – These measures how efficient your sales and marketing strategies are in attracting new customers. A lower CAC indicates that your marketing spend is cost effective.
- Customer lifetime value – This metric predicts how much an average customer will generate in total revenue for your business when they buy from you. Essentially, it reveals how solid your customer relationships are and how loyal your customers are to you. It can also help you assess customer acquisition costs and advertising and marketing budgets.
These are just some of the long list of ecommerce financial metrics to track for business success. Let our ecommerce accountants oversee indicators so that you can focus on running your store and keeping your customers happy. Schedule your first meeting with us here or call 0208 914 8887.
