Mistake 5. No analysis of key indicators on purchases and returns
Posted: Tue Jan 28, 2025 3:59 am
Mistake 5. No analysis of key indicators on purchases and returns
Analysis of key performance indicators on purchases and returns
How do such errors occur?
Firstly, the online store kuwait email list uses an analytical program that does not provide detailed information about orders.
To solve the problem, the CRM data of the online store and the online cash register are combined, connecting the latter using a payment generator.
Secondly, the data is collected but not used to optimize operations, citing the fact that it is not so important for a small business.
But experienced marketers recommend analyzing the store's activity from the very beginning. Don't you want to understand why, for example, customers place an order but do not pay for the goods? The collected indicators help to study the target audience, better set up contextual advertising, email newsletters and other advertising tools.
Let's look at what marketing metrics are usually used:
Standard: number of clicks on the site, sales volume, cost of 1 target action.
The target action in online trading is placing an order (sometimes they mean a purchase). To calculate the cost of the CD, take the advertising budget and divide it by the number of orders.
CPA = Cost of advertising campaign / Number of orders
It is advisable to determine this indicator for each advertising channel separately to evaluate the effectiveness of investments. Then the next advertising campaign will bring more sales with less costs.
More important for an online store:
the number of returning customers;
the number of unpaid orders - the norm is considered to be 10% of customer carts abandoned;
the number of one-time buyers who, after one purchase, do not return.
Professional analysis of these metrics will make the site more understandable and user-friendly, which will help increase sales.
A common situation is when visitors collect their shopping cart but do not pay. And the reason may be a misunderstanding of the meaning of registration, because you did not inform the potential buyer about the possibility of accumulating points and receiving messages about sales and special offers.
The reasons, of course, can be different, and here analytics, discussions and brainstorming in the team, A/B testing of two groups of visitors who are shown different options for basket design, order placement formats will come to the rescue. Then an analysis of key indicators is carried out.
Analysis of key performance indicators on purchases and returns
How do such errors occur?
Firstly, the online store kuwait email list uses an analytical program that does not provide detailed information about orders.
To solve the problem, the CRM data of the online store and the online cash register are combined, connecting the latter using a payment generator.
Secondly, the data is collected but not used to optimize operations, citing the fact that it is not so important for a small business.
But experienced marketers recommend analyzing the store's activity from the very beginning. Don't you want to understand why, for example, customers place an order but do not pay for the goods? The collected indicators help to study the target audience, better set up contextual advertising, email newsletters and other advertising tools.
Let's look at what marketing metrics are usually used:
Standard: number of clicks on the site, sales volume, cost of 1 target action.
The target action in online trading is placing an order (sometimes they mean a purchase). To calculate the cost of the CD, take the advertising budget and divide it by the number of orders.
CPA = Cost of advertising campaign / Number of orders
It is advisable to determine this indicator for each advertising channel separately to evaluate the effectiveness of investments. Then the next advertising campaign will bring more sales with less costs.
More important for an online store:
the number of returning customers;
the number of unpaid orders - the norm is considered to be 10% of customer carts abandoned;
the number of one-time buyers who, after one purchase, do not return.
Professional analysis of these metrics will make the site more understandable and user-friendly, which will help increase sales.
A common situation is when visitors collect their shopping cart but do not pay. And the reason may be a misunderstanding of the meaning of registration, because you did not inform the potential buyer about the possibility of accumulating points and receiving messages about sales and special offers.
The reasons, of course, can be different, and here analytics, discussions and brainstorming in the team, A/B testing of two groups of visitors who are shown different options for basket design, order placement formats will come to the rescue. Then an analysis of key indicators is carried out.