You know you can’t run a Shopify store without keeping an eye on your store data… but there’s just too much data for you to track by yourself, right? Don’t worry, we’ve listed out the most critical metrics for you to track right here.
The 9 most vital metrics for Shopify stores
This shows you how many visitors you’re driving to your Shopify store. The traffic is measured in terms of sessions and users. The amount of traffic that you generate is heavily dependent on the your marketing campaigns, it’s a key indicator of the effectiveness of these campaigns.
If you see a dip in this figure, you need to look into your marketing efforts and see what went wrong. Likewise, if you see a sudden spike, you should check what worked out in your favor and try to replicate it. To figure this out, you’d have to track your traffic according to the source and see which channels are working or not working for you.
You already know how you can boost your traffic through SEO, content marketing, paid search, social media marketing, etc., but here’s a hack you probably didn’t know - you can use an intelligent chatbot deployed over WhatsApp, Instagram, Facebook Messenger, Telegram, etc. to drive traffic to your website whenever your customers have queries. You can also use a WhatsApp chatbot to broadcast offers, sales, and new releases to your contact list, sending them to your website.
Your conversion rates are essentially a measure of how effective your website is at getting visitors to take the actions that you want them to take. It isn’t limited to just making a purchase, a conversion goal could also be signing up for a newsletter, adding a product to their cart, etc.
A simple conversion funnel for the actual sale could be ‘Added to cart’, ‘reached checkout’, and ‘Purchased’.
To boost your conversion rate, you could consider tweaking your store design, website copy, and the CTAs that you employ on your store. You could also use the conversion triggers from your Engati chatbot to shoot a promotional message with a discount code whenever a customer lands on a page, scrolls through it, spends a certain amount of time on it, adds or removes a product from their cart, or is about to exit the website.
It goes without saying that this is one of the most vital metrics for your Shopify store. It’s the amount of revenue you generate by selling your offerings to your customers during a specific period. Keeping an eye on this allows you to notice patterns that can help you understand your customers’ shopping behavior and figure out what your peak sales period is.
One of the most effective ways for you to increase your total sales would be to make the buying process easier and reduce friction. Engaging in social commerce and allowing customers to make purchases directly from social media platforms like Instagram, Facebook, TikTok, and WhatsApp can help you take your sales through the roof.
Average order value
Your average order value is the average amount of money that your customers spend on making purchases from your online store. Along with helping your understand shopper behavior, keeping an eye on this metric also helps you improve your pricing structure and shows you when you need to step up your marketing efforts.
If you want to increase your average order value, your best move would be to engage in cross-selling and upselling. You could also opt for product bundling so that your customers are enticed into buying more products at a lower price than they would otherwise have to pay.
Repeat customer rate
The repeat customer rate is the percentage of your customers who have placed upwards of one order from your Shopify store. To calculate this metric, you would divide your returning customers by the total number of customers.
Increasing your repeat customer rate is critical for your eCommerce business to succeed since your chances of making sales to new customers are only 5-20%, while your chances of making sales to existing customers goes up to 60-70%.
Your bounce rate is the percentage of website visitors who leave your website after seeing just one webpage and not clicking on anything or making any action. These are the visitors who leave almost instantly after they open your website.
The biggest factor when it comes to bounce rate is website loading speed. Google has reported that 53% of people would leave instantly if your site takes upwards of three seconds to load.
Other contributors to high bounce rates include irrelevant content or subject, unappealing web design, etc.
The first thing you need to do is optimize your page speed. After that, you can look at improving your store’s design, and using pop-ups (or better, Engati’s conversion triggers) to hold the visitor’s attention.
Cart abandonment rate
Cart abandonment occurs when customers add products to their carts but then leave your online store without making a purchase. It’s one of the biggest issues in the eCommerce world, and if you don’t believe me, just keep in mind that in March 2020 alone, online shoppers abandoned 88.05% of their shopping carts (as per Statista).
Some of the major causes for cart abandonment include surprise costs, complex checkout processes, and the lack of a good return policy.
Traditionally, you’d use cart abandonment emails to recover these carts, but there’s only so much you can do with emails… the average open rate if you send these emails within 3 hours of the customer abandoning their cart is around 40%. That’’s high for emails… but if you drop a message on WhatsApp, your open rate goes up exponentially with WhatsApp messages boasting an open rate of 99%. That’s why Engati’s Shopify chatbots allow you to trigger abandoned cart recovery messages directly on WhatsApp.
Net Promoter Score
Your Net Promoter Score is essentially an indicator of customer satisfaction that shows how many of your customers would be ready to recommend you to their friends and family. Measuring this score involves sending your customers a survey and asking them a question along the lines of - “How likely are you to recommend this product or service to a friend or colleague?”. You’d ask them to rate their likelihood of recommending you to the friends and acquaintances on a scale of 0 to 10. Then you’d classify your customers into detractors, passives, and promoters on the basis of their scores.
To calculate your NPS, you’d subtract the percentage of detractors from the percentage of promoters.
Steps to improve your NPS would revolve around improving your customer experience by techniques like streamlining the checkout process, improving your return policy, and providing 24/7 support through the use of artificially intelligent chabots.
Return rate is a major issue because in 2020 alone, online shoppers returned more than $428 billion’s worth of products. Sometimes a user might return a product because of their own individual preferences, but if you notice a trend in which a lot of customers are returning the same product, that could be an indicator of a quality issue with that product. Keeping an eye on return rates would help you see how satisfied your customers are with your offerings.