Stop using vanity metrics to measure your website’s performance! The pros are using 5 detailed metrics in the customer conversion journey to measure and improve.
Pageviews or time-on-site are bad ways to measure visitor engagement. Your visitors could view a lot of pages, yet be unable to find the right product, or seem to spend a long time on site, but be confused about the shipping rates.
Here are the 5 better metrics, and how they help you improve your Shopify store:
1. Product list click-through rate
Of the products viewed in a list or category page, how many click through to see the product details?
Products need good images, naming and pricing to even get considered by your visitors. If a product has a low click-through rate, relative to other products in the list, then you know either the image, title or price is wrong.
Like-wise, products with very high list click-through, but low purchases, may be hidden gems that you could promote on your homepage and recommended lists to increase revenue.
If traffic from a particular campaign or keyword has a low click-through rate overall, then the marketing message may be a bad match with the products offered – similar to having a high bounce rate.
2. Add-to-cart rate
Of the product details viewed, how many products were added to the cart?
If visitors to your store normally land straight on the product details page, or you have a low number of SKUs, then the add-to-cart rate is more useful.
A low add-to-cart rate could be caused by uncompetitive pricing, a weak product description, or issues with the detailed features of the product. Obviously, it will also drop if you have limited variants (sizes or colours) in stock.
Again, it’s worth looking at whether particular marketing campaigns have lower add-to-cart rates, as it means that particular audience just isn’t interested in your product.
3. Cart to Checkout rate
Number of checkout processes started, divided by the number of sessions where a product is added to cart
A low rate may indicate that customers are shopping around for products – they add to cart, but then go to check a similar product on another site.
It could also mean customers are unclear about shipping or return options before they decide to pay. Is the rate especially low for customers from a particular country, or products with unusual shipping costs?
4. Checkout conversion rate
Number of visitors paying for their cart, divided by those that start the process
Shopify provides a standard checkout process, optimised for ease of transaction, but the conversion rate can still vary between sites, depending on payment options and desire.
Put simply: if your product is a must-have, customers will jump through any hoops to complete the checkout. Yet for impulse purchases, or luxury items, any tiny flaws in the checkout experience will reduce conversion.
Is the checkout conversion worse for particular geographies? It could be that shipping or payment options are worrying users. Does using an order coupon or voucher at checkout increase the conversion rate?
With Littledata’s app you can split out the checkout steps to decide if the issue is shipping or payment.
5. Refund rate
Percent of transactions refunded
Refunds are a growing issue for all ecommerce but especially fashion retail. You legally have to honour refunds, but are you taking them into account in your marketing analysis?
If your refund rate is high, and you base your return on advertising spend on gross sales (before refunds), then you risk burning cash on promoting to customers who just return the product.
The refund rate is also essential for merchandising: aside from quality issues, was an often-refunded product badly described or promoted on the site, leading to false expectations?
If you’re not finding it easy to get a clear picture of these 5 steps, we’re in the process of developing Littledata’s new Shopify app. You can join the list to be the first to get a free trial! We ensure all of the above metrics are accurate in Google Analytics, and the outliers can then be analysed in our Pro reports.
You can also benchmark your store performance against stores in similar sectors, to decide if there are tweaks to the store template or promotions you need to make.
Have more questions? Comment below or get in touch with our lovely team of Google Analytics experts!