Monday, March 14, 2022

Metrics for analyzing sales performance

In eCommerce, according to various estimates, the share of such users is from 55 to 90%, and for purchases from mobile devices, this percentage is higher than for desktop: it is more difficult to see the product in all details from a small screen or enter data for placing an order if the form is not filled out automatically. Check these settings first if your application's CAR is too high.


The percentage of abandoned carts is especially important when the conversion is low or it is too expensive to attract new users. But reducing this indicator in any case makes your business more successful. App hack: Effectively remind your users of forgotten items with push notifications.


AOV (average order value) - average check

The average check is an important indicator in the long run. It is calculated as the ratio of the total income received from sales or order fulfillment to the total number of these orders for a certain time period.


Knowing the AOV, you can predict the revenue of your store, taking into account the conversion and the number of users, and adjust the development strategy. If the average check is low, then it may be more profitable for you to stimulate its increase, rather than attract new customers.


The pandemic has affected the size of the average check: it has become smaller, while the frequency of purchases has increased. Be prepared for the fact that people will buy often, but not as much as before.

How to track user engagement and retention in Ecommerce

CR (conversion rate) - degree of conversion

CR shows the percentage of app users that are lost and targeted. For expensive goods that are rarely bought without prior offline presentation, or for the banking industry, an application may be the target case.


In an eCommerce change, the target action is a purchase. From the moment of installation to placing an order, you need to go through a series of steps - sales funnels. For each of them, a part of the buyers is eliminated. Some do not even enter the catalog, others limit themselves to viewing products, partially add something to the cart, but do not complete the purchase process.


The average conversion rate in trade by sales area (so for books it is higher than for electronics), so it is better to solve it with numbers for your industry. To calculate CR, you need to divide the number of users who completed the target action by the total number of users and multiply by 100%.


If your online store has a wide range of products, it makes sense to consider the conversion separately for different product groups. And to find a weak spot and understand what interest the bulk of users are weeding out, read the conversion for each step.


 CAR (Cart Abandon Rate) - Cart Abandonment Rate

CAR shows the percentage of users who added items to their cart but never made an order. Most of them were really ready to buy, but at the last moment they got distracted or changed their minds.

Metrics for analyzing sales performance

In eCommerce, according to various estimates, the share of such users is from 55 to 90%, and for purchases from mobile devices, this percent...