It’s easy to become lost in the numbers and question whether your current business model works when you first start your e-commerce business.
Navigating the online world is a competition for your audience’s attention for even the most niche industries. New e-commerce business owners face many challenges, from reaching their audience to converting those interactions into sales. With so many moving parts, let’s discuss how to measure digital success for your e-commerce business.
Keep an Eye on Your Conversion Rate
Conversion rate is the buzzword you can’t escape as a new e-commerce business owner (for a good reason). A conversion rate is the ratio of site visitors to purchases. For example, a company with 500 site visitors and 50 sales in one month has a current conversion rate of 10 percent. According to Invesp, the average e-commerce conversion rate in the US in 2019 was approximately 2.57 percent.
Conversion rates can get disheartening when starting a new e-commerce business. However, it’s essential to see these numbers as a tool for growth and as a signal for what changes your business needs to make. Something about the experience turns shoppers away, and a low conversion rate tells you when it’s time to act.
Adapt to Your Social Media Analytics
How many followers and likes you have feels like a high-value metric for your business. However, social media is just as centered around conversions.
It’s important to experiment with various online engagement strategies until you find one that works for your brand’s voice and goals. While likes and follows can help you improve reach, the goal is to get people who click links looking at your content, not just those who like and keep scrolling. Finding that part of your audience takes skill, some luck, and, often, money.
Social media platforms offer various built-in methods for improving your business’s online presence. However, there are other ways you can invest your marketing funds. Businesses invest in their online engagement through affiliate marketing, which strays away from likes and clicks and focuses on true conversions. Small businesses also tap into the digital influencer market to expose their brand to wider audiences.
Don’t Ignore Cart Abandonment Rates
Finally, a way to measure the success of your e-commerce business is by viewing your cart abandonment rate. This number tells you how many people nearly complete the process, only to turn away at the end.
Cart abandonment happens for several reasons, from untrustworthy payment pages to overly complex page navigation. Even sluggish site speeds cause users to bail. Pay attention to this number, make changes accordingly, and celebrate growth when you see it improve!
Despite the difficult battles you face operating an online business, the independence and ability to maintain values that come with e-commerce are worth the challenge. Understanding how to measure digital success for your e-commerce business makes it easier to adapt and learn. Seeing the full picture of where you are today only makes it that much more satisfying when your business grows later.