Growth Metrics in eCommerce
Depending on the current status of your business and your strategic targets, different metrics will help you achieve different goals at different stages of your projects. Therefore, we asked our experts: Which stats specifically are not only crucial to an effective digital growth strategy but are also often underestimated? Find out which metrics can actually hold you back from unleashing your full potential.
Which growth metrics are critical for growth?
From gross revenue to contribution margin
Contribution margin calculates the difference between revenue and variable costs and subsequently what is left to cover fixed costs, and helps you decide which products to add or remove from your assortment. If your main focus is growth and gaining new customers, you’ll have to view the contribution margin as a strategic lever.
Setting benchmarks with AOV and CAC
Average order value and customer acquisition cost are really valuable metrics among your various shop KPIs. AOV allows you to set benchmarks and analyze which of your activities will lead to higher basket values and contirbution margins. CAC gives you a good idea which channels and countries are wasy growth invests.
Marketing spend & effectiveness
Customer lifetime value (CLV) is the most important metric to steer and optimize your marketing spend. It takes both current and future orders into consideration. Ultimately, it doesn’t matter whether you are profitable on the first order of a customer, but rather how many orders you need from one specific customer to turn profitable.
Forecasts for revenue, spend & profitability
To set up effective forecasting, you’ll need to define strategic goals right at the start from top to bottom: general targets for different countries and all channels individually. You should also always review all your targets bottom up and let the experts check if your goals are achievable.
Profitable online visibility with SEO
Focus on keywords and develop landing pages that drive valuable traffic to your website. Track which keywordsd do not only increase visibility and ultimately impact your primary goals.
Additional growth metrics to consider
Shop availability & error monitoring
A fast-moving environment with multiple deployments on a weekly and monthly basis requires robust and detailed error monitoring on multiple shop aspects. Not reacting quickly enough to problems is one of the most common cardinal sins when it comes to digital growth.
Assortment performance & sorting
By optimizing your assortment sorting, you can directly influence the performance of pages that usually don’t have the best conversion rates. Integrate what you’ve learned from purchase history, wish lists, favored colors, brands, and seasonal sales into your sorting logic.
The power of content performance
Content elements on your site are a huge asset and should underlie an online marketing logic. Closely track which content is displayed to which customers on which parts of your shop. Analyze which content elements win over others by response and conversion.
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