The Three Metrics That Will Make or Break Your eCommerce Business

The Three Metrics That Will Make or Break Your eCommerce Business

By: Justin SpringCofounderBringShare.comAdeptMarketing.com

Word Of The Day:

LAG

Word Of The Day:

LAG metricThe metric that is the end-result of a lot of

other metrics

Lead vs. Lag Metrics

Lead Metric

Lead Metric

Lead Metric

LAG METRIC

The Three LAG Metrics That Will Make or Break Your eCommerce Business


The REAL presentation title:

The Three LAG Metrics That Will Make or Break Your eCommerce Business


… and the lead metrics that impact them.

The REAL presentation title:

LAG Metric #1

Unconversion Rate

Average: 98%

Unconversion Rate

Top Landing Pages

Conversion Funnel

Traffic Quality

Unconversion Rate

Lead Metrics

1

1 Unconversion Rate1a: Top Landing Pages Bounce Rate

1

Unconversion Rate1b: Conversion Funnel Exit Point

Page 1

High Exit %

Find the leak and plug it!

1

Page 2

Page 3

Conversion Page

Unconversion Rate1c: Traffic Quality by Source

1

Unconversion Rate1

Landing Page Exits Conversion Funnel Exit Traffic Quality by Source

LAG Metric #2

12-Month Customer Value


% of Repeat Purchasers

Average Order Value

$ Value of an Email Address


Lead Metrics

2

12-Month Customer Value2a: Average Order Value

2


Free Shipping Threshold

2

2a: Average Order Value


Cross Selling

2

2a: Average Order Value


REWARD

2b: % of Repeat Purchasers

2


How much is each email address worth to you?

• Send more often

• Send more promo/reward offers

• Invest in list building

• List segmentation

2c: $ Value of an Email Address

2


Avg Order Value % Repeat Purchasers $ Value of Email Address

2

LAG Metric #3

Paid Traffic CPA(Cost Per Acquisition)

Paid Traffic CPA

Can you buy customers for less than they are worth? If so, spend aggressively NOW!

• 12-Month Value = $250

• 70% Gross Margin = $175

• Breakeven CPA = $175

3

Paid Traffic CPA

Conversion Rate by Source

Cost Per Click

Paid Traffic CPA

Lead Metrics

3

Paid Traffic CPA

• All advertising can be broken down into a CPC– For CPM campaigns, demand to know the average

CTR for advertisers in your industry

• 1000 Clicks @ $1.00 = $1000 Spend

• Conversions as 2% = 20

• Break-even CPA: $175

• Paid Traffic Cost Per Acquisition: $50

• Gross Profit: $125

3a: Cost Per Click

3

Paid Traffic CPA

• Align everything:

– Ad Placement > Ad Content > Landing Page

• Test and remove low converting traffic sources

3b: Conversion Rate By Source

3

Paid Traffic CPA

Cost Per Click Conv. Rate by Source

3

Lead vs. Lag Metrics

Unconversion Rate


Paid Traffic CPA

SALES INCREASE

Remember…

• Lag metric goals are just the beginning of your goal planning

• Use lag metrics to identify the lead metrics that are most important

• Little tweaks to 2-3 lead metrics will have an exponential effect on the corresponding lag metric

Thank youJustin[at]bringshare.com