The festive season is creeping up on us. Whether we are ready for it or not.
Christmas 2021 is predicted to be a big one, for customers and eCommerce businesses alike.
After being unable to celebrate with friends and family during 2020, many are keen to spoil their loved ones, embrace the festive experience, and go big this year. For eCommerce businesses, this means getting their festive strategies and tactics in place for online stores.
And to achieve this, marketers need to review their eCommerce business metrics before, during, and after the festivities. This is key to learning what works and what doesn’t and how to react to consumer behavior in the most effective way.
To get you started, here are six eCommerce business metrics that every e-tailer should focus on for a successful festive season.
There are so many metrics for e-tail operators to get lost in.
Traffic. Social shares. Email opens. But ultimately, all of these metrics are meaningless if the people who visit your website, follow you on social media, or engage with your emails don’t convert.
Conversion rate refers to the percentage of users who visit your website and then go on to convert. Which usually (but not exclusively) refers to sales conversions, i.e. customers who go on to make a purchase. But for some brands, a conversion could encompass an inquiry, a competition entry, a newsletter sign-up, or a content download.
So when it comes to conversions during the festive season, make sure your brand identifies those that are the most meaningful to business success.
E-tailers can then focus on taking measures to increase conversions.
There is no simple trick to improving conversion rates. To get prepared for the festive season, check out our blog post.
Product conversion rate
Second to knowing how many customers are converting on your eCommerce site is knowing which products are the most popular and are converting the most visitors into buyers.
This information is essential for planning your festive campaigns.
- It provides enough time to fill your inventory with on-demand items.
- It informs you about which products may need extra promotion to clear them from your shop.
Festive marketing is fiercely competitive, so you want to make the most of the prime real estate in your email marketing and website promotions. Therefore, use your highest-converting products to inform product promotions, recommended product deals, and featured imagery in your campaigns.
Cost of sale (COS)
When it comes to the items you are selling, not all are created equal.
Yes, it’s important to identify your most popular selling products. However, you also have to consider customer acquisition costs, i.e. the costs involved in selling your most popular items and the ROI generated.
For example, ask yourself:
- How much do the items cost?
- How much does the promotion of the item cost?
- And how much does securing a sale or new customer cost?
This information will help you to determine how profitable specific products and marketing campaigns are for your business. This key information can be used to inform your e-tail festive marketing strategy so that you are spending in the areas most likely to generate an ROI.
Units per transaction (UPT)
It’s great that consumers are buying from you, but you should dig a little deeper to identify how much consumers are buying with each transaction.
By identifying how many units (products) are purchased every time a customer checks out, you are gaining essential information about your audience's behavior. This includes popular products, products that are often bought together, and products that specific types of users prefer.
Marketers can utilize this information to improve their UPT metrics through cross-selling relevant items to existing and potential customers. This can include personalized product recommendations at the point of purchase, such as batteries for Christmas toys. This method has the added value of improving customer satisfaction and generating repeat customers.
Average order value (AOV)
Similar to identifying units per transaction, average order value (AOV) is a key indicator of customer behavior. It indicates whether customers are purchasing lots of items, high-value items, or just purchasing one-off items.
If your AOV is low, you will want to put tactics in place to increase this come festive rush.
In addition to cross-selling which we previously mentioned, brands can practice upselling by recommending higher value, alternative items prior to check out.
Brands can also set promotions based on the AOV of their audience to encourage them to spend a little more. For example, an offer such as “spend £50 and get free shipping before Christmas Day” could help you increase your AOV.
Shopping cart abandonment rate (SCA)
Shopping cart (or basket) abandonment rate refers to potential purchasers who leave your website after adding an item to their basket without completing the transaction.
According to Barclaycard, £18 billion worth of products are abandoned in online baskets in the UK every year. That’s just over 69% of online carts.
This is a key metric to monitor before and during your festive campaigns. If your abandonment rates are high prior to the festive season, then you can put measures in place to rectify this before the shopping push, such as streamlining your check-out process.
Identifying abandoned carts is essential during the festive season. With the help of marketing automation, brands can send out abandoned basket reminders to encourage consumers to finish their purchases. These will often include a reminder of the item, relevant information, and even a discount code.
Leveraging these eCommerce business metrics this festive season will increase your total revenue, improve customer lifetime value (CLV), and ensure happy returning customers and successful eCommerce stores.
Meet the Author
Komal Helyer, VP of Marketing, Pure360
Award-winning Komal has over 20 years of experience in email and digital marketing. VP Marketing at Pure360, Komal leads the Go-to-Market, Retention, and Brand strategies at Pure360.
A passionate email marketer, Komal is also Chair of the DMA Email Council. As a key industry thought leader and events speaker, Komal is also a sub Editor @ The Modern Retail and writes for many other publications.
Komal's passion to support greater diversity in the workplace is the driving force behind her commitment to mentoring individuals in the industry, she is also a Mentor @The Girls Network.
She has been nominated for many awards and was proud to win Corporate Woman of the Year '19 at the Business Woman's Excellence Awards and to be awarded a Top 50 CX Star accolade in 2021.