Get digital marketing services for Shopify business from Bear North Digital. We’ll help you develop an effective digital marketing strategy and monitor it to increase your income. Contact our team at 715-319-4822 to discuss your marketing KPIs and read more to find out which ones to monitor.
1. Conversion Rate
Your Shopify conversion rate describes the number of people who complete a specific action. Whether you want customers to buy a product, visit a particular page, or sign up for an email newsletter, your conversion rate indicates how successful your store’s website is at convincing visitors to perform an action. A high conversion rate means many successful turnovers from site visitor to customer.
Your site visitors’ experience determines what actions they’ll take (if any). This data is the most effective at helping you sculpt your marketing strategy. To determine the conversion rate for your Shopify business, divide the number of visitors by the conversion amount.
2. Store Traffic
Store traffic tracks how many visitors come to your Shopify store. The larger the traffic, the more popular your store is. With this Shopify KPI, you can determine whether people are viewing your products and readjust your marketing strategy accordingly.
The more people view your products, the more chances you have at making sales. Following this indicator, it’s easy to know if you should adjust your marketing outreach across social media. Low store traffic means you’re not getting views.
Consider a pay-per-click ad campaign to increase your views. Alternatively, consider SEO to boost your store’s ranking across search engines to get more traffic. Track traffic over a period of time to see how your visibility increases.
3. Number of Placed Orders
The number of orders your visitors place can help you determine whether your customers are satisfied with the products you sell and your Shopify store. The amount of orders also indicates whether you need to improve your site.
Compare the number of placed orders with the total site visitor count to determine how well your overall store is performing. Then compare the transaction number with your average order size to see which products customers like best or purchase most frequently.
4. Shipping Costs
Shipping costs are another vital Shopify KPI to track. Pricing shipping rates too high can discourage store visitors from converting, while lower shipping rates please customers. However, your shipping cost should allow effective, fast shipping without being too expensive. By tracking this key performance indicator, you’ll ensure you have reasonable shipping costs on every product.
If your shipping KPIs aren’t where you want them, consider using a different carrier to ship your products. You could save more money with their estimate, but it could warrant you increase your shipping rates. Shopify offers a calculator to help determine shipping costs based on product size and weight to help you know how to proceed.
5. Cart Abandonment Rate
Not all visitors who add products to their cart purchase them. The cart abandonment rate KPI tells you how many people leave products in their shopping cart without checking out. Low numbers indicate more successful purchases.
Customers facing a long or overly complex checkout process typically abandon their cart. Therefore, you want to make the process straightforward to encourage purchases. If this KPI is high, you’ll need to consider your checkout system and ensure the process makes it fast and easy for visitors to purchase your products.
Other reasons why potential customers abandon their cart include shipping prices being too high or additional fees. Consider offering free shipping options and simplifying the checkout process to avoid these issues.
6. Orders From New Customers vs. Repeat Customers
Tracking this Shopify KPI means you can better understand whether your new customers or repeat customers bring you the most income. Customer acquisition is vital to your marketing strategy, but maintaining these customers can be challenging.
By determining where your income-boosting customers are, you can better target them with pay-per-click ads and SEO marketing tactics on social media, Google, your Shopify store, and other locations.
If your repeat customers aren’t purchasing as many products as new customers, it may be time to revamp your strategy. Whether you choose to add and announce new products, target another audience demographic, or add more to your campaign, an SEO expert can help.
7. Revenue Per Store Visitor
The revenue per store visitor, or RPV, tracks how much an individual spends on your Shopify store when they visit. If your site isn’t creating many sales per person, your RPV could indicate dissatisfaction with your products’ quality, issues with the checkout process or other parts of the website, overly expensive pricing, or other problems.
Higher value items will boost your site’s revenue considerably; however, the more expensive an item is, the fewer sales it could get. Low-cost products could also garner less revenue if they aren’t bulk items.
8. Customer Lifetime Value (CLV)
The customer lifetime value (CLV) is a Shopify KPI you should consider to understand each customer’s profitability throughout their experiences with your eCommerce business. Knowing this profit margin can help determine which customers to target and which to avoid.
To determine the CLV, you’ll need first to determine the lifetime value of a returning customer. Consider how much your store’s average order costs, then calculate how many users no longer shop with you. Determine your customer acquisition costs, and multiply these three values to determine how profitable a customer is throughout their lifetime.
9. Inventory Levels [anchor]
While inventory levels are essential for any business, too much inventory can be problematic. With rising inventory comes more storage needs and increasing expenses. Stock that doesn’t sell indicates your store’s products could need updating, products could be too expensive, or there is not enough product visibility.
It’s also ideal to monitor inventory to ensure you don’t miss crucial sales. If the merchandise is too low, products could run out. The last thing you want to do is disappoint a customer.
10. Customer Acquisition Expenses
Customer acquisition represents how much it costs your business to get new customers. Depending on your business’s industry, this could range from around $20 to $530 or more. Your business should spend enough money to acquire new customers without damaging your earning potential or current revenue.
You can calculate this Shopify KPI very easily. Divide your marketing budget by the number of customers you acquire during a specific period. If your acquisition expenses are too high, consider implementing more efficient ways to reach your target audience.
Consider SEO Services for Your Shopify Business of Any Size
Are you looking for help understanding the most important Shopify KPIs and how you can increase your company’s visibility and sales? The professionals at Bear North Digital want your business to succeed. We can help you create an in-depth marketing strategy that meets your Shopify store’s goals.
Our team has years of experience crafting, monitoring, and revising marketing strategies for Shopify and other online stores. We’ll help you determine the most realistic KPIs to target regarding your store’s success.
We are available if you need help with your marketing strategy after learning about key performance indicators or want to discover how SEO services can help your Shopify business. Consider a Shopify KPI analytics tool, and learn more about our SEO services for Shopify. Contact Bear North Digital at 715-319-4822.