Monitoring and performance measurement may very well be one of the most important aspects to focus on if you want your eCommerce business to succeed. In fact, the most profitable eCommerce businesses base their communication, marketing, sales as well as every decision and step on data and metrics. And that is the logical thing to do! Because how will one ever know what’s working, what’s not, or what will if one does not emphasize data and metrics. Hence, performance monitoring is not just a good-to-have thing, it is mandatory for businesses to make informed decisions.
However, monitoring goes well beyond only telling you what works or what doesn’t work. Here are a few important reasons why you should track your progress and performance.
1. To plan better: With performance monitoring and measurement of key metrics, you can observe how a given component is faring and how it is going to load over time. This will help you plan your undertakings accordingly. Furthermore, past data can be the foundation for capacity planning for businesses with recurring sales periods and promotional campaigns that attract customers. Along with planning better, monitoring will also help you recognize problems and make necessary changes before they become big.
2. To understand the conversion rate and cost of acquiring customers (CAC): Conversion rate is simply the total number of visitors that result in purchases or subscription. Meanwhile, the cost of acquiring customers is the cost of winning a customer to purchase a product/service. If you place emphasis on data, you will have access to the advertising campaigns that have the highest conversion rate and low CAC.
3. To build a good reputation: For any eCommerce business, a good reputation is a must. And why not? The landscape is so crowded that one would seek an edge however possible. A good reputation depends upon a plethora of factors: fast website load speed, quality product description, customer engagement, order fulfillment, and support, and more. But most importantly, it is continual work requiring regular tracking, improvement, and maintenance.
4. To effectively manage inventory: One of the most tedious yet necessary tasks for any eCommerce business is managing inventory. Keeping an inventory of your products requires work. More so, to figure out the right amount to be kept in stock. Constantly following your sales and customer purchases will help you find an increase or decrease in products and browsing patterns which will help you restock accordingly.
5. To learn about your potential customers: Customer analytics will provide you with insights on customer preferences and help optimize your storefront, product page. A careful look at the page views, time spent on a page, and bounce rate is enough to get you to curate your content and messaging.
6. To improve SEO: As you understand your customer preferences, keywords performance, and other analytics, you will be able to easily use it to gain more visibility and enhance your SEO ranking.
Considering all the aforementioned points, it is safe to say that performance monitoring is key for businesses to succeed in the eCommerce arena. To help you stay alert to these critical insights, Alep Digital brings to you features like keyword tracker, product pulse, and IP monitoring. You can now automatically monitor what position your listing ranks for each of your buyer keywords and get notified when someone leaves a product review or if someone tries to hijack your listing or copies your images. Get in touch with our team today!