11 Shopify metrics to track as a small business owner
Running an ecommerce business can feel overwhelming, especially if you’re a small business owner. But fear not! Here at Wepik we’ve got the inside scoop on tracking the right metrics and key performance indicators (from now on, KPIs) to help you understand how your business is performing and where to focus your efforts.
In this guide, we’ll breeze through the most important e-commerce metrics and KPIs that every small business owner should have on their radar, so grab a cup of coffee and buckle up as we dive into the exciting world of ecommerce metrics.
Understanding Shopify KPIs
As a Shopify store owner, you know how important it is to track and measure your performance. That’s where KPIs come in. These crucial metrics help you understand how your business is doing and make informed decisions. By keeping an eye on metrics like sales, traffic, customers, and inventory, you can gain valuable insights and identify areas for improvement.
When it comes to measuring success on Shopify, there are three key types of metrics that we can use as KPIs:
- Sales metrics are like your trusty revenue compass. They give you valuable insights into how much your store is raking in. Understanding this is crucial in determining if your business is actually making a profit or not.
- Traffic metrics, on the other hand, are like your store’s personal paparazzi. They tell you the juicy details about the number of visitors coming to your store, as well as where they’re coming from. How cool is that?
- Last but not least, customer metrics are like your business’s best friend. They help you gauge the effectiveness of marketing campaigns and ensure that you’re not going overboard on customer acquisition spending.
By using these Shopify metrics, you’ll be able to track, analyze, and optimize your online business like a pro.
Shopify analytics vs Google Analytics 4
These tools can give you powerful insights into your business, but they do have some key differences. First off, let’s dive into the main difference between the two platforms.
Shopify analytics is designed specifically for e-commerce businesses, while GA4 is a more general analytics platform. What does this mean for you? Well, with Shopify analytics, you can get detailed insights into e-commerce-specific metrics like sales, inventory, and customer behavior. On the other hand, GA4 focuses on tracking user behavior across different platforms and channels.
Now let’s talk about how these tools collect and process data. Shopify analytics relies on data collected directly from the Shopify platform. However, GA4 takes it a step further by using machine learning and AI to collect data from websites, apps, and even offline interactions. This means that GA4 can provide you with more comprehensive insights into user behavior, including cross-device and cross-platform interactions.
Lastly, let’s discuss the system itself. Shopify analytics is a closed system, which means it can only track data from within the Shopify platform. In contrast, GA4 is an open system that can track data from multiple sources, such as websites, mobile apps, and offline interactions.
In summary, both Shopify analytics and GA4 are powerful tools for tracking and analyzing e-commerce metrics. The choice between the two will ultimately depend on your specific business needs and the type of insights you’re looking to gain. For a more in-depth look into analytics, check out this Google Analytics (GA4) guide.
Shopify sales metrics
Sales metrics are the key indicators that keep a pulse on how much revenue your store is generating. They play a crucial role in helping you gauge whether you’re making a profit or not.
Total sales and orders
Shopify’s robust sales metrics provide businesses with invaluable insights. They offer a comprehensive view of total sales and orders, allowing businesses to track revenue and assess marketing strategies. With the ability to segment data by product or channel, Shopify empowers businesses to optimize operations and drive growth. By leveraging these metrics, businesses can make data-driven decisions that lead to improved profitability and success.
Best products sold
Want to know which products are rocking your store? Look no further than the Best Products Sold report! This report reveals the top-selling products in your store based on revenue. It’s like having a personal sales expert at your fingertips, helping you understand which products are generating the most revenue. Plus, it can uncover hidden sales trends and patterns so you can make smarter decisions. Use this valuable information to promote the winners and say goodbye to the underperformers. And who knows, maybe you’ll stumble upon genius ideas to boost your revenue!
Ever wonder how many of your site visitors turn into customers? That’s where the Conversion Rate metric comes into play. It’s the percentage of visitors who hit that “Buy” button and become your loyal customers. A high conversion rate is the ultimate goal! To calculate yours, simply divide the number of sales by the number of visitors, then multiply by 100. Get ready to celebrate when your conversion rate skyrockets!
Average order value (AOV)
We all love big purchases, right? The Average Order Value (AOV) is all about that! It’s the average amount of money your customers spend on each order. A higher AOV means your customers are treating themselves to more goodies. To calculate your AOV, divide your total revenue by the number of orders. Keep an eye on that AOV and watch your sales soar!
Shopify traffic metrics
Traffic metrics are like your website’s personal detectives, keeping tabs on the number of visitors that grace your digital turf. They play a crucial role in unravelling the mysteries of your online presence by revealing the who, what, and where of your site’s visitors.
Ever wondered where all your website traffic is coming from? This nifty feature, gives you valuable insights into the top sources of your sessions. From social media platforms and search engines to direct traffic, you’ll get a clear picture of which channels are driving the most visitors to your site. Armed with this knowledge, you can make informed decisions about where to focus your marketing efforts and drive even more traffic to your digital domain.
Best landing pages
Curious to know which pages on your website have the power to captivate and entice visitors right from the start? “Best Landing Pages” will reveal the undisputed champions – the top pages where first-time visitors land on your site. Not only will you uncover the pages that are most effective at attracting and retaining visitors, but you’ll also gain valuable insights into the success of your marketing campaigns. With this treasure trove of data, you can make decisions about which pages to optimize and promote for maximum impact.
Returning customer rate
Loyalty, my dear friend, is more than a mere word. It’s a metric that holds the secret to your success. Enter the “Returning Customer Rate” – a powerful indicator that tracks the percentage of customers who have made repeated purchases from your store. This metric allows you to gauge the loyalty of your customer base and identify golden opportunities to increase customer retention. By nurturing this loyalty, you’ll be paving the way for growth and ensuring your customers keep coming back for more of your remarkable offerings.
Customer cohort analysis
Wish you could discover the inner workings of your customer base? Allow us to introduce you to the magical realm of “Customer Cohort Analysis.” This remarkable report sheds light on how different groups of customers, who made their first purchase during a specific time period, behave over time. Revealing insights into the lifetime value of your customers, it helps you identify opportunities to boost customer retention.
Shopify customer metrics
Customer metrics are the key to unlocking valuable insights into how your customers engage with your site. By tracking their behavior, you gain a better understanding of their interactions with your store. This valuable information can inform decisions that drive growth and enhance the customer experience.
Sales by traffic source
Curious about which traffic sources are bringing in the most revenue for your business? The Sales by Traffic Source report has got you covered! Whether it’s search engines, social media, or email campaigns, this report breaks it all down for you. By understanding which channels are driving the most revenue to your site, you can make informed decisions about where to focus your marketing efforts.
Sales attributed to marketing
Want to dive deeper into your marketing efforts? Check out the Sales Attributed to Marketing report! Here, you can see the total revenue generated by popular marketing channels like Facebook, Google Ads, and email campaigns. We even calculate the return on ad spend (ROAS) for each channel, giving you valuable insights into the effectiveness of your marketing campaigns. This will help you allocate your marketing resources wisely and make data-driven decisions for optimal results.
Sales by channel
And for an overview of which channels are bringing in the bucks, take a look at the Sales by Channel report. Whether it’s your online store, point of sale, or buy buttons, this report gives you a snapshot of how much revenue your store is generating from different channels. By understanding which channels are driving the most revenue, you’ll have the knowledge to prioritize your marketing efforts and boost your business.
With the appropriate metrics and KPIs, you can explore the potential of e-commerce success! Dive into the realm of Shopify analytics to learn about sales, traffic, and customer behavior. Say goodbye to guesswork and hello to data-driven decisions that will offer you an advantage over your competitors in the fast-paced world of e-commerce. As your small business grows, focus on the best e-commerce marketing metrics to ensure your online store reigns top. Allow statistics to be your guide and watch your success soar!