Everything you need to know about Metrics​

Every successful business is driven by metrics. Metrics are powerful tools that tell you where you’ve been and to where you’re headed. Is your business headed in the right direction? Here are the most widely used metrics that every businessman or/and women should know by heart. Let’s get down to business.  

1.Average Order Value (AOV)

  • An average dollar amount that customers spend when they make a purchase 
  • AOV = ($total revenue) / (#) orders placed 

How to increase your average order value 

  1. Cross-sell
  2. Up-sell
  3. Offer complementary products
  4. Free shipping with a minimum purchase 
  5. Coupons 

2.Sales Conversion Rate

  • How many visitors make a purchase 
  • =  ( # of sales) / ( # of users) x 100%

How to maintain a high conversion rate

  1. Buy a .com domain (.org domain erodes trust)
  2. Add detailed contact information
  3. Ensure your search tab function matches what people search for 

3.Repeat Customer Rate (RCR)

  • The percentage of customers who return to make a second purchase 

How to improve  repeat customer rate 

  1. Exceptional customer service 
  2. Implement loyalty programs 
  3. Send out relevant newsletters 

4.Shopping Cart Abandonment 

  • Percentage of people who added items to the shopping cart but did not complete the purchase 

How to combat shopping cart abandonment 

  1. Speed matters 
  2. Be transparent with all costs and fees upfront 
  3. Have clear return policy in place 

The main metrics you should be watching for when leveraging emails are:

5.Email Bounce Rates 

  • Undeliverable email 
  • Benchmark is less than 2%
  • Email Bounce Rates = (Total # of bouns emails) / (Number of emails sent) *100

How to keep your email bounce rates low

  1. If you haven’t sent an email to your subscribers in last six month, send subscription reconfirmation email first
  2. Do not use purchased email lists
  3. Avoid sending out spammy content

6.Growth Rate 

  • The rate at which your email list is growing 
  • Growth Rate = (Total Number of Subscribers) – (Unsubscribers) / (Total Number of Email Addresses on Your List) 

How to grow your email list

  1. Build out your email list 
  2. Add content that increases your trustworthiness 
  3. Personalize – avoid robot-looking emails

7.Open Rate 

How to guarantee high open rate 

  1. Get personal  
  2. Create an engaging subject line 
  3. Avoid spam (4-letter) words 

8.Clickthrough Rate

  • The percentage of email recipients who clicked on the content given in the email 
  • Clickthrough Rate (%)= (Total Clicks / # of Delivered Emails) * 100

How to achieve higher clickthrough rate 

  1. Mobile-friendly 
  2. Show your product in use 
  3. Add reviews 

Conversion Rate 

  • The percentage of email recipients who clicked on a link and completed the action that was promoted
  • Conversion Rate (%) = ( # of people who completed the desired action) / (# of total emails delivered) * 100

How to achieve a higher conversion rate

  • Provide facts 
  • Tell your brands story 
  • Include coupons 

Additional resources to help you with optimizing your blog page to avoid high bounce rates: 

9. Blog Bounce Rates 

How to keep your blog bounce rates  low

  1. Provide focused and relevant content with the right keywords 
  2. Keep paragraphs short and easy to understand 
  3. Avoid popups

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