WooCommerce focused on Advertising?

Must have 3 Acquisition metrics to monitor

WHAT is Acquisition metrics?

If you ask me personally, then Acquisition metrics = Success metrics. Its why you have your WooCommerce for the first place.

A marketeer would answer it with a segmented sentence, complicating it further. Acquisition is the total of three distinct stages: lead generation, lead nurturing, and sales.

Whatever is your Success, and whatever you call it (Growth, Performance, Results) its tied to your specific niche. If your WooCommerce is all about promoting YOUR product, then your Acquisition is all about those who want to purchase YOUR products (or at least consider).

You need a clearly defined acquisition strategy to bring the right “interested people” in to your WooCommerce to convert them. But how do you set up and then evolve you acquisition strategy? The answer lies in your tracked acquisition metrics. By tracking these metrics, you monitor your business and make data-driven decisions for your growth. And never forget: “What gets measured gets managed!”.

Figure out fast and early whether or not you’re FOCUSING the real HUMANS. Buying digital fluff (leads, clicks, follows, visits, downloads, subscribers or whatnot’s) mostly makes reporting beautiful and bank account empty. Then optimize the acquisition costs (make it cheaper or get more for the same cost). Expand that knowledge into further campaigns. Optimize again, over a specific time frame, and you’ll have a more effectively budget.

WHY monitor Acquisition metrics?

Acquisition Metrics are KPIs, and KPIs are Important for your WooCommerce. Said one voice, in a whimsical tone.

Acquisition metrics and KPIs help WooCommerce businesses to gain an in-depth understanding of how their marketing efforts are contributing towards goal achievement. Customer acquisition metrics are important because they provide tangible insights into the effectiveness of your marketing and sales efforts.

These Acquisition metrics allow you to track the cost of each customer, understand the value they bring to your WooCommerce business, and measure the success of your conversion strategies. With this information, you can make data-driven decisions to optimize your acquisition process, allocate resources wisely, and maximize your return on investment.

Monitor ONLY 3 Acquisition metrics?

3 is just a personal recommendation. Not small enough to get ignored, yet big enough to get noticed, even if you glimpse over them.

Set up Acquisition notification via important channels like email, sms, alerts, notifications that work for your WooCommerce. Not all the time will this be perfect, but should be important enough to not get forgotten. Make sure these Acquisition alerts are scheduled on a day/hour when intervention is possible. Friday, late afternoon is translated to either Monday late afternoon, or ignored and skipped.

Frequency? Depends.
If this makes or breaks your budget THIS month, then monitor this weekly.
If this makes or breaks your Q1-Q2-Q3-Q4, them monitor this monthly.
If this is a subject for a meeting, then schedule this BEFORE that said meeting.

In all cases, should consider MOM (month over month) and YOY (year over year) monitoring. Helps understanding where you’re heading, at what expected point (logical and educated deduction).

#1 – Customer Acquisition Cost

Customer Acquisition Cost (also known as CAC) is a key metric for your unique e-commerce businesses, as it helps determine how much you spend to acquire your next new customers. In an ever-growing costly online existence, this is vital to know!

How to calculate Customer Acquisition Cost? Calculate by dividing the total costs associated with acquiring customers by the number of new customers acquired during that specific period. Make sure you include ALL marketing expenses like landing page creation, and creatives, not just cost per click paid to 3rd party.

Why track Customer Acquisition Cost? Customer Acquisition Cost (CAC) helps you understand how much you’re spending to acquire a new customer. This is crucial for assessing the profitability of your marketing efforts and ensuring that your acquisition strategies are sustainable.

How to improve Customer Acquisition Cost? To improve CAC, focus on optimizing your ad campaigns for better targeting, increase conversion rates through A/B testing, and leverage organic traffic strategies like SEO and content marketing to reduce reliance on paid ads.

#2 – Click-Through Rate

Click-Through Rate (also known as CTR) for an e-shop measures the percentage of users who click on a specific link or advertisement compared to the total number of users who viewed it. It’s often used to evaluate the effectiveness of marketing campaigns, email promotions, or product listings.

How to calculate Click-Through Rate? Divide the number of clicks your ad received by the number of times the ad is shown (also known as impressions), then multiplying by 100 to get your percentage.

Why track Click-Through Rate? CTR measures how effectively your ads capture your audience interest. A higher CTR indicates that your ad content and targeting resonate with your audience, leading to more potential customers visiting your e-shop.

How to improve Click-Through Rate? To improve CTR, use targeted keywords. Enhance ad copy and visuals to be more engaging also helps. Refine your audience targeting to reach users more likely to click (days, hours, events) to get a huge boost.

#3 – Conversion Rate

Conversion Rate for an e-shop is the percentage of visitors who take a desired action, typically making a purchase (sales, orders, booking, etc.).

How to calculate Conversion Rate? Conversion rate is calculated by dividing the number of conversions by the total number of visitors, then multiplying by 100, to get your percentage.

Why track Conversion Rate? Conversion rate measures the percentage of visitors who complete a desired action. This can be for your entire eshop or just making a purchase from a specific category or from discounted/featured products. Conversion Rate shows the effectiveness of your landing pages and overall customer journey.

How to improve Conversion Rate? To boost conversion rates, conduct user experience testing to identify and REMOVE any barriers in the purchase process. Use persuasive calls to action (CTA). Ensure your e-shop is optimized for mobile users, speed and privacy.