7 Essential Customer Success Metrics for E-commerce
Rob Elgaron August 26, 2022.
It's one thing to create an e-commerce store, but without customers, it's impossible to make sales and generate revenue. Creating and sustaining a loyal customer base of returning customers while gradually gaining new ones is key to running a long-lasting and growing e-commerce store. This is where e-commerce analytics metrics can help.
1. Churn Rate
Churn rate is the percentage of customers that stop buying products or cease to use a service over a decided period of time.
Customer churn analysis can give you insight into customer satisfaction and provide areas for improvement. Monitoring your churn rate vs retention rate will help ensure you maintain a steady stream of customers.
2. Customer Acquisition Cost
Customer acquisition cost (CAC) refers to how much a single new customer costs to acquire. Understanding CAC is critical as it provides valuable insight into marketing costs, as well as the success of a campaign.
CAC can also aid possible investors as it displays the possible growth potential of your company.
3. Customer Lifetime Value
Another essential e-commerce analytics metric is customer lifetime value (CLV). CLV indicates a single customer's expected value over their time with your business. By analyzing CLV in google analytics and your ITV vs CAC ratio, you'll be able to better balance short- and long-term goals, forecast your financial future, and market your product to customers with higher value.
4. Customer Satisfaction Rate
A happy customer is a returning customer. Customer satisfaction rate, also known as customer satisfaction score (CSAT) can be used to assess the experience your customers have when interacting with your brand.
Your CSAT should ideally be above 75%. Anything lower than this could indicate unhappy customers, which provides a space for further investigation.
5. Returning Client Rate
Returning client rate is an e-commerce analytics metric opposite to churn rate. Understanding how many of your customers are returning highlights successful areas of your business, allowing you to continue with successful campaigns.
Furthermore, by using tips for attracting repeat customers and analyzing the results, you could predict future finances and therefore the direction to expand your business in.
6. Sales Conversion Rate
The sales conversion rate allows you to measure the effectiveness of your sales funnels and how well they convert leads into paying customers.
A low sales conversion rate can indicate a leaky sales funnel that needs to be addressed. Sales conversion rate is important to help align marketing campaigns with leads that convert.
7. Shopping Cart Abandonment Rate
Shopping cart abandonment rate shows the percentage of customers that abandon a sales funnel at checkout. A high cart abandonment rate can indicate poor user satisfaction or a broken sales funnel.
Learning how to calculate cart abandonment rate and implementing your findings will help boost conversions and reduce wasted leads.
Without your customers, you have no business. Focusing primarily on your customers, how they interact with your business, and their overall satisfaction levels will give you insight into what direction to move your company.