Much like a compass helps navigate a journey, data can help brands and ecommerce merchants navigate a path toward success. Tracking the right subscription and ecommerce metrics can gauge the overall health of your business, highlight areas for improvement and help brands and merchants make data-driven decisions for the future.
“It is very refreshing to talk to merchants who appreciate analytics,” sticky.io Vice President and General Manager of Performance Marketing Chad Buckendahl told PYMNTS.com during an interview on performance metrics.
But with so many different data points available, Buckendahl acknowledged some merchants find it challenging to pinpoint the most essential metrics for ecommerce and subscription commerce.
To overcome this challenge, Buckendahl created the following charts so merchants can leverage the most useful insights.
No matter the industry, there are several metrics critical to all businesses with ecommerce offerings. These are the top metrics brands and merchants should consistently measure.
*There are several ways to measure Customer Lifetime Value. See more formulas here.
The successful subscription business model relies on customer loyalty to produce recurring revenue. Track these metrics to determine if your brand has a strong subscription strategy.
*An order is a successful transaction. A decline is an unsuccessful transaction.
Once you begin tracking the metrics above, consider keeping a close eye on the following measures as well. The sections highlighted in orange only pertain to subscriptions.
*Often referred to as Customer Acquisition Cost (CAC).
** Includes orders manually marked as fraud and orders caught by risk mitigation providers.
Metrics are useless unless you act on the findings. For example, if churn analysis reveals customers stop engaging with a brand after four purchases, then brands need to strategize how to motivate customers to make a fifth purchase. Moreover, high fraud ratios and low recovered revenue ratio could mean money is being left on the table and it could be time to explore revenue maximization tools within an ecommerce platform.
It is also important to keep in mind that simply gathering this data should not drain valuable time and resources. Brands and merchants serious about these metrics should leverage an ecommerce and subscription management platform that provides high-level overviews of key metrics, and then drills down into trends or individual customers and transaction. Remember, the whole point of tracking metrics is to learn, adjust and grow your business.
See how sticky.io empowers brands and merchants to make data-driven decisions. Request a platform demo today.