Why Competitive Benchmarking Is Essential for E-Commerce Success
Competitive benchmarking is one of the best ways to get insights into your direct competitors' performance and business strategies. By comparing yourself against them, you'll gain valuable insight into their strengths and weaknesses, allowing you to improve your business strategy and ultimately succeed. Competitive benchmarking is divided into three categories: Strategic benchmarking Analyzes and compares business models and strategies against your competitors.Process benchmarking Compares your business processes to your competitors.Performance benchmarking Compares your business's performance across a set of metrics such as social media engagement, brand recognition, revenue, and more. Benefits of Competitive Benchmarking for E-Commerce There are many reasons why you might choose to perform competitive benchmarking. Perhaps you're looking to increase sales, reduce costs, or simply learn more about your industry. Whatever your reason, benchmarking competitor analysis can provide you with invaluable insights into your competitors' success. Here are the key competitive benchmarking benefits: Identify areas of strength and weakness, and recognize opportunitiesGain a deeper understanding of your market and industry trendsLearn how to improve your business strategyImprove customer satisfaction by identifying an accurate retention rate benchmarkReduce operational costs and increase profitabilityUnderstand your competitors' business modelCreate a measurable plan to achieve your attainable goals Best Practice for Effective Competitive Benchmarking To perform successful competitive benchmarking, you need to follow these basic steps: Choose Your KPIs Firstly, decide which key performance indicators (KPIs) you want to monitor, such as inventory turnover, client retention, and sales cycle duration. A competitive benchmarking analysis should focus on KPIs your sales team already measures. Identify Your Competitors Begin by selecting competitors who are similar to your business in the criteria you are analyzing, like scale, geography, service and product offering, or market. Compare your business to immediate competitors, best-in-class competitors, and industry disruptors. Define What to Measure Depending on your goals, you will measure different metrics. The most important thing to remember about measuring your KPIs is that you are looking for trends that will give an accurate picture of your performance. Track Your Performance If you want to track specific goals, such as increasing sales, or improving conversions, it is wise to create separate reports. Remember to revisit your strategy periodically. Are you still focused on the right thing? Is your plan working? Do you have enough resources allocated to reach your goals? These questions require ongoing monitoring and evaluation.
Asked 8 days ago
Reasons for a Low Bounce Rate on Your E-Commerce Store
It's every e-commerce store owner's dream: a low bounce rate. A low bounce rate means that visitors to your store are sticking around, looking at multiple products, and perhaps even making a purchase. In this post, we'll explore some of the contributing factors to a low bounce rate. By definition, a bounce rate is the percentage of visitors who leave your site after viewing only one page. A high bounce rate means that your site isn't providing enough value to attract new visitors. Causes of a Low Bounce Rate Several factors can contribute to a low bounce rate Having a well-designed and user-friendly website A well-designed website that's quick and easy for users to navigate and offers relevant and targeted content keeps users on your site for longer.Mobile-friendliness Mobile-friendliness refers to making sure that the website works well on mobile devices. This includes optimizing images and text sizes.Site speed Another factor that can impact bounce rate is site speed. If your website takes too long to load, users will likely give up and go elsewhere. Ensure your site is as fast and efficient as possible to keep users engaged.Relevant and targeted content Finally, consider your audience. If you're targeting a specific group of users, make sure your content is relevant to them. Offering targeted content with specific search query intent and accurate keywords is a great way to keep them engaged and reduce your bounce rate. What Can a Low Bounce Rate Tell You? When calculating bounce rate, you want to know whether or not people are leaving your site because they didn't find what they wanted. If people are staying on your website and engaging with your content, it's likely because they're finding the information and products they're looking for. A low bounce rate implies that your e-commerce website is on the right track and offering an excellent user experience.
Asked 8 days ago
Understanding Shopify's Advanced Report Builder
The Advanced Builder Report is an app developed by the Shopify website development team that lets you customize existing reports within Shopify's analytics. A Shopify Advanced or Shopify Plus plan is required to use this app. Any data from your Shopify store can be used to build Shopify custom reports. Once you customize the report to your liking, you can save and reuse it at any time. Purpose of the Advanced Report Builder The Shopify advanced report builder is not only useful for modifying existing reports, but also for making real-time marketing and sales decisions. These are tailored custom reports for e-commerce, and similar to Shopify reports, except that they include adjustable filters that show you the Shopify report metrics that are important to your business. Some of the reports available are financial reports, customer service reports, behavior reports, marketing reports, and more. Data reports created using custom data drill deeper into relevant KPIs and give you a better understanding of variables. The layout structure of the reports can also be customized to make them easier to read. Furthermore, this app allows you to export data to CSV, Microsoft Excel, and Google Spreadsheets. How to Access Shopify's Advanced Report Builder By upgrading to the Advanced Shopify Plan or the Shopify Plus Plan, you'll have access to the Advanced Report Builder on Shopify. You will automatically receive the Advanced Report Builder after upgrading your Shopify store, as it is included with these plans.
Asked 8 days ago
How to Find and Analyze Bounce Rate on Shopify
Shopify defines bounce rate as "the percent of site visitors that lands on a page and only looks at said page before leaving". A customer is also considered to have bounced if they leave your site without taking any action. High bounce rates kill leads, sales, and customer engagement. Shopify analytics provides custom reports for e-commerce stores, including the number of visits, pages viewed per visit, average visit duration, new visit percentage, and bounce rate. Where to Find Bounce Rate on Shopify A high bounce rate is directly related to a lack in sales, but to understand if this is a problem you're facing, you need to know how to find your bounce rate on Shopify. Log in to your Shopify store, and locate the "Analytics" tab on the left-hand sideOpen up "Reports"Locate Acquisition and click on "Sessions over time"Choose the date range that you want to view your bounce rate forScroll down and locate "Edit columns" on the right sideClick on "Edit columns" and choose "Bounce rate" from the drop-down menu Analyzing Bounce Rate on Shopify The bounce rate percentage is calculated by taking the number of visitors that leave a website after only visiting a single page, divided by the total number of website guests, and then multiplied by 100: (Single page visitors/total visitors) X 100 According to Shopify, a bounce rate higher than 57% is an indication that your site isn't giving a good first impression. As mentioned above, this could be due to a number of reasons, such as poor website design, slow page speeds, and more. You need to analyze many other user metrics to identify why your bounce rate is high before you can attempt to reduce it. If your bounce rate is low, but you still seem to be losing sales, you might want to take a look at checkout behavior analysis techniques for a better understanding of where you're losing customers.
Asked 8 days ago
Breakdown of Shopify KPI Reports
Shopify reports and analytics provide a platform for you to view a variety of metrics with regard to your store's recent activity. This allows you to gain insight into your visitors and their behavior, your store's performance, and to keep track of transactions. What to Include in a Shopify KPI Report Every business requires different reports, but there are a few key metrics that should be included in a Shopify KPI report: Traffic Traffic is one of the most important metrics to follow. If your store isn't receiving any traffic it will be impossible to generate sales. If your traffic is low, you should put all your focus into raising it.Conversion rate If your traffic is high, but you aren't making sales, then your conversion rate will be low. Monitoring your conversion rate will help you determine where you are losing customers.Repeat customers Repeat customers suggest you're doing something right. Furthermore, a repeat customer is cheaper than a new customer.New customers The number of new customers over a period gives insight into your store's popularity and discoverability. Average order value Understanding how much the average customer spends will help you predict trends and make future business plans.Inventory level High inventory stock can tie up needed capital, while a low inventory can limit sales. How to Create a Shopify KPI Report KPI reports are simple to generate on Shopify, but the types of reports that are available are limited by your current plan. To create an e-commerce KPI report on Shopify, follow these steps: Log in to your Shopify storeOn the left-hand panel, locate "Analytics"Click on "Reports"Select the type of report you wish to create As a basic user, you'll have access to the Overview dashboard, finance reports, and product analytics. Custom reports are only available to Advanced and Shopify Plus users.
Asked 8 days ago
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