One of the most prolific benefits of doing business in the digital era is having access to a ton of different metrics. Take ecommerce marketing. The right metrics show ecommerce operators the path to success. This begs a question: if you are an ecommerce marketer, are you tracking the right metrics?
It is a legitimate question given the fact that there are an endless number of metrics a marketer could track. But every available metric is not necessarily an appropriate one. Marketers need to determine which metrics provide valuable and relevant information as opposed to those that constitute little more than window dressing on a metrics report.
Chasing Metrics Is Unproductive
There is a difference between tracking relevant metrics and chasing metrics unnecessarily. Chasing metrics is unproductive. It wastes time and energy. It confuses the issue and makes it more difficult for marketers to see what is really going on. So how does a marketer avoid doing so?
Chasing metrics is something Webtek team members are very cognizant of. Webtek Digital Marketing is an SEO in digital marketing firm with offices in Salt Lake City, UT and Austin, TX. They put a lot of time into determining the right metrics for each project. That is actually the key to avoiding metric chasing.
It’s never safe to assume that every organization benefits from the same set of metrics. Whether you are an independent marketer or you’re part of a company’s marketing team, you’re better off putting the time and effort into understanding the most important metrics to whatever you’re trying to achieve. That may change from one project to another.
Examples of Ecommerce Marketing Metrics
In order to figure out the most appropriate metrics for ecommerce marketing, you have to know which metrics are actually available. That takes a little bit of research. A bit of experience doesn’t help, either. Here are a few examples of common ecommerce marketing metrics:
- Click-Through Rate (CTR) – CTR is a measurement of the rate at which potential customers click on paid ads, unpaid links, and so forth. If an ad gets a hundred views and five clicks, CTR is 5%. The higher the CTR, the more traffic the ad is driving.
- Conversion Rate – Conversion rate is a measurement of the volume of customers who actually buy something. The same numbers from the previous example can be applied. If a hundred customers view a product but only five actually buy it, your conversion rate is 5%.
- Return on Investment (ROI) – Ecommerce marketers sometimes struggle with ROI because it is hard to quantify. Nonetheless, ROI is a measurement of what you get for the money you spend. It is often measured in dollars and cents, though there are other ways to quantify it.
- Customer Acquisition Cost (CAC) – CAC measures what you spend to acquire one customer. This particular metric can be as ambiguous as ROI. Nonetheless, it’s appropriate in many ecommerce marketing scenarios – especially those that aren’t linked directly to sales.
Before you choke on your coffee, let us clarify that hard sales are not the only goal of ecommerce marketing. Sales are just one part of the equation. Ecommerce marketing is also designed to build brand loyalty, strengthen a company’s brand, and establish online authority. Every marketing campaign doesn’t have to be, and shouldn’t be, about sales.
Ecommerce marketing metrics show the way to successful business. They are both guideposts and mile markers on the ecommerce road. Just remember that every metric is not appropriate to every marketing scenario. The secret to success is figuring out which metrics apply in each separate scenario. Win that game and you win ecommerce.
