A huge part of running any successful ecommerce store is measuring quantitative performance. There are several key performance metrics (KPI) that should be integrated into your business’s decision-making process. These are some of the best ways to track the month-over-month success of your ecommerce makeup store.
Your Conversion Rate Determines Your Bottom Line
You want your ecommerce makeup store to have as many visitors as possible. However, the number of people who come to your site becomes irrelevant if they all just pass through. The conversion rate measures the percentage of visitors who purchase something while on your site. Since the ultimate goal of your ecommerce makeup site should be to increase sales, your conversion rate is one of the most important KPIs.
How Can You Improve Conversion Rate?
There are many recommended methods for improving conversion rate. Showing testimonials of some kind can increase the likelihood of making a conversion. Consumers respond better to their peers telling them to purchase a product as opposed to a company telling them to buy it. Showing social media subscriber counts is another form of testimonial that tends to increase a consumer’s trust in a site.
Another way to increase conversions is to show remaining inventory. This can encourage people to pull the trigger on a purchase if they see there’s only a limited supply of a certain product. If you recently started an ecommerce makeup store and have been struggling to figure out how to sell makeup more efficiently, quantifying your conversion rate should be a top priority.
Customer Lifetime Value
It’s crucial to understand the value of your customers is based upon more than the amount they spend in individual purchases. A much better metric is measuring the amount a customer spends at your ecommerce makeup store over the long term. The best way to quantify this is through customer lifetime value (CLV). On the most basic level, you need to calculate the average amount a certain number of customers spend at your store over a set period of time. For an ecommerce makeup store, this timeframe will probably be monthly or yearly. You then have to determine how long these customers are remaining loyal to your store. Kissmetrics provides an in-depth infographic on how to calculate CLV.
How Can You Improve Customer Lifetime Value?
Two of the biggest issues deterring customer loyalty are customer service and brand quality. If you fail to deliver on these two fronts, your ecommerce makeup store will struggle to develop loyal customers, which are the backbone of any successful online business.
Other Important KPIs for Your Ecommerce Store
While conversion rate and CLV should be the bread and butter of your business analytics, there are other important metrics to keep in mind. Customer Acquisition Cost (CAC) is simply how much you spend on marketing and advertising divided by the number of new customers you gain over a certain period. Implementing more effective marketing strategies can help you lower this number. For an ecommerce makeup store, calculating your total number of customers on a month-over-month basis is an intuitive way to track your store’s growth.
Keeping track of customer analytics can be a tedious aspect of running an ecommerce makeup store. However, Tracking Month-Over-Month Success for Your Ecommerce Makeup Store is a necessary part of growing your business—and monitoring its health.