Shopify Reports For Identifying Leaky Sales Funnels
Identifying leaks is essential to optimizing your sales funnels. Google Analytics offers three funnel-related reports that could be used to find holes in your Shopify conversion funnels. However, while this article discusses reports that will help you to identify leaks, the reports must also be supported by both quantitative (heat maps, technical analysis, etc.) and qualitative data (surveys, user testing, etc.) to find out why the leaks exist and how to fix them. 1. Funnel Visualization The funnel visualization report gives a basic overview of a conversion funnel with a specific goal. The report shows a visual representation of users who enter a funnel and how they interact before reaching the goal or dropping off. Because this is a basic overview, the report doesn't represent alternative user actions on your site. 2. Goal Flow The goal flow report shows the most accurate path of how users navigate through a conversion funnel. The report allows you to visualize the loopbacks, jumps, and skips users made while on your site. Furthermore, advanced segments can be added to deep dive into your best converting users and identify successful and faulty marketing funnels. 3. Reverse Goal Path Reports The reverse goal path report begins at your funnel goal and works backward to identify the exact path a user took before converting. The report shows the previous three pages a user visited before reaching the goal. This can give insight into the most popular route users take to your end goal, regardless of your created funnel. Conclusion Performing sales funnel analysis for optimizing conversions will not only increase sales but will help you plug leaky holes in marketing channels and gain a deep understanding of your customer's journey.
Asked a month ago
Cost Per Lead vs. Cost Per Acquisition: What's the Difference?
Cost per Lead (CPL) and Cost per Acquisition (CPA) are both key sales metrics eCommerce website owners should leverage. Although CPL and CPA are related, not understanding the difference between the two or when to use either can lead to a misinterpretation of data. This could impact future marketing campaigns as well as your Return on Investment (ROI). Cost Per Lead Explained CPL is the amount of money your business spends to generate a single potential customer. Gaining this information gives you insight into how effective a marketing campaign has been. CPL is calculated by the total cost you spent on a particular campaign, divided by the number of successfully generated leads. If an ad campaign costs you $500 to run and you generated 800 leads: CPL = Total campaign cost / Number of leads CPL = $500 / 800 CPL = $0.63 In other words, each new lead cost you $0.63. Cost Per Acquisition Explained CPA calculates the total cost to take a user down a marketing funnel and make a conversion, not just the cost of a lead. To calculate CPA, the total media costs of a funnel are divided by the number of successful conversions the funnel produces. For example, if you spent $100 on a graphic designer, $200 on an ad campaign, and $50 on an SEO guide, and made 5 new sales: CPA = Total marketing costs / Number of conversions CPA = ($100 + $200 + $50) / 5 CPA = $70 Which Metric Is More Useful? CPL can be used to determine the success of a campaign, while CPA is best to determine the total marketing cost it takes to make a sale. Both are equally useful, depending on what you use them for.
Asked a month ago
Why Performance Reporting Is an E-Commerce Priority
Performance reporting is the process of collecting information about how well a company is doing. This document includes data from specific work and analyzes it to see where improvements can be made. You might use performance reporting to measure the progress and success of a project or product, track trends and even track the progress of a single employee. Purpose of Performance Reports Performance reporting helps businesses understand how they are performing across different areas. If you want to compare yourself against your peers, performance reporting serves as an important benchmarking tool. You can even find out what your strengths and weaknesses are, giving you the chance to work on improving those areas. This essential business analytics tool allows you to analyze specific performance indicators like customer retention rate, profit margins, and revenue growth, helping you and your team devise and optimize effective strategies and adjust goals. How Performance Reports Are Used Performance reporting can vary from company to company. But, generally, the process will follow these steps: Define your target audience A performance report must contain the information that your target audience is looking for. Knowing who will be reading it, what their role is in the organization, and what their expectations are is crucial. Identify goals and objectives As soon as you have a clear understanding of your target audience, you need to decide what you want to accomplish. Identify your company's goals and objectives and your organization's mission.Create an executive summary You should begin your performance report by writing an executive summary that summarizes your company's performance across all operations.Assess your performance When you have written your summary, it is time to assess your business. You will be able to evaluate all of the major KPIs and metrics that are essential for measuring the results of each part of your business in this section.Include charts and tables Including charts, tables, and other elements help to summarize and explain data, making it an important feature to include in performance reports.
Asked 2 months ago
What Is Average Basket Size (ABS) in E-Commerce?
In retail, average basket size is a metric of your shopping behavior report used to track the average number of items per transaction. This metric is important because it can give insights into basket checkout behavior and help retailers optimize their inventory and pricing. How to Calculate Average Basket Size The most common method is to take the total units sold in a period of time and divide it by the total number of transactions in that same period. This will give you the average number of items per transaction. Use this handy formula: Average basket size = total number of units sold / total number of transactions Here Is a Breakdown of Each Component Total units sold By counting the number of units you sold per transaction, you can find your total number of units sold. Tracking total units sold is easier with a point-of-sale (POS) system that includes inventory management. Number of transactions Second, you have to take into account the total number of transactions during the time when you sold your total number of units. Using retail software's automated reporting and product analytics features, you can track the number of transactions easily. The Importance of Average Basket Size Whichever method you use, understanding your shopping basket size is a helpful way to track the health of your business and can also help you identify trends and make strategic decisions about pricing, promotions, and product mix. Calculating your average basket size has many benefits. First, by running checkout behavior analysis, you can track marketing and price effectiveness. If your average basket size decreases, your prices may be too expensive, or your marketing may not be reaching the right demographic. Second, average basket size helps forecast sales. Knowing how much each consumer spends on average helps predict revenue. Finally, average basket size is a key metric for measuring customer satisfaction and can be used to improve the customer experience.
Asked 2 months ago
Is Shopify's Dashboard Reporting Inaccurate?
The Shopify dashboard shows valuable metrics that give you insight into your store's performance and your customers' behavior. The problem is that the results between Google Analytics and Shopify differ. Read on to learn more. Are Shopify Dashboard Analytics Accurate? Shopify Analytics has a poor reputation when it comes to its accuracy. Approximately 12% of orders go missing, which is largely due to the following issues: Analytics is reliant on customers seeing the thank you pageCross-domain tracking being setup incorrectlyServer-side tracking is missingSales data doesn't segment between first-time purchases and recurring transactions (subscriptions) This not only skews sales analytics but also impacts page view times and click-through rate. Reasons for Inaccuracy of Shopify Dashboard Reporting The main reasons for Shopify's e-commerce dashboard inaccuracy are due to the need for customers to view the thank you page, and a bad cross-domain tracking setup. Cross-domain Tracking Setup When checking out from Shopify, customers are sent to a Shopify domain (checkout.shopify.com). This causes the session to end suddenly and for the analysis tool to see the checkout domain as the last click. Thank You Page Problems If a customer doesn't view the thank you page, Shopify doesn't count the sale in its dashboard analytics. Here are the reasons they might not view your thank you page: Customers not waiting for the thank you page Since online stores send email confirmations, many customers don't wait for the confirmation page to load.Draft orders As draft orders are paid at a later date, there is no thank you page when a customer makes an order.Third-party checkouts Using a third-party checkout often bypasses the Shopify thank you page altogether.Recurring orders Recurring orders don't require a customer to return to your store. As the user never goes through the checkout process, the sale isn't recorded by Shopify's analytics. Since Shopify's dashboard analytics aren't accurate, it's best to connect Google Analytics to Shopify.
Asked 2 months ago
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