FAQ'S: Let's Simplify Online Marketing
Running a business is not always an easy feat to accomplish. It can get complicated and leave business owners confused, especially when it comes to online performance. We've put together a list of frequently asked questions that we will continue to update that addresses some of the more common questions we get when it comes to online development and marketing optimization.
Key Performance Indicators | KPI's
A marketing metric that often gets overlooked by new online businesses is the annual repurchase rate. It measures the percentage of customers who place additional orders within a pre-defined time period. Accurately tracking of the annual repurchase rate is a key indicator of how well a product or service is aligned with the market demand. A measurement that needs to be factored in as it provides you a value for your repeat customers, and in a business aimed for growth, is a key indicator to keep tabs on.
Average order value or “AOV” is an ecommerce metric that measures the average total of all orders placed online, typically through a cart, over a pre-defined period of time. AOV is arguably one of the most important metrics to monitor and track for ecommerce stores.
Cart abandonment is a key metric that measure how well an ecommerce or online merchant can get visitors to a post-purchase position. It measures how often items are placed into a cart and the user leaves without completing the transaction. If an online store experiences high cart abandonment rates then ultimately profits will suffer and further investigation followed by optimization would be needed.
In an e-commerce setting conversion rate tracking and optimization is critical to continued growth and online success. It is a metric that measures the performance of actionable engagements online. This can include a wide variety of available marketing methods online such as coupon use, subscription sign-ups, inquiries into a business or an online sale of goods or services. Conversion rate is one of the key indicators of success for any online store.
Commonly known as LTV, customer lifetime value is a metric that best describes the value associated with online visitors to a sales channel. LTV is based on customers buying habits over a pre-defined period of time. Customer lifetime value is a key indicator of overall customer satisfaction.
Customer retention rate is the effectiveness an online has to keep existing customers returning for additional purchases. True growth is never about a one-time sale, online success is possible when an organization has the ability to drive growth by focusing on building and fostering authentic relationships by effectively creating habit-forming experiences.
The total amount of orders that are placed online typically through an ecommerce store or merchant.
Return on investment or (ROI) is a measurement that reflects the profits generated by a specific marketing action. The return on investment as expressed by the term shows how much we get back from an investment – whether it was profitable or not.
The customer retention rate is the ability to define how loyal a customer base is to a product, brand or service. A key indicator for performance and also how well individual products sell online. Often associated with ecommerce stores but customer Retention can apply to many different transactional scenarios.