WooCommerce focused on Referrals?

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 – Referral Traffic

Referral Traffic for an e-shop focused on referrals, means visitors who arrive to your e-shop through links from other websites, typically through partner sites or affiliates. This type of traffic is generated when existing customers or partners share links to the e-shop, often incentivized by referral programs that reward them for driving new customers.

Why track Referral Traffic? It’s a key metric for measuring the effectiveness of referral marketing strategies and can lead to increased sales and brand awareness. Referral traffic shows how many visitors come to your e-shop from specific domains, indicating the effectiveness of your partnerships and outreach efforts. Tracking this helps you identify which sources are driving valuable traffic.

How to calculate Referral Traffic? In your private analytics, view the “Referrals” report under Acquisition. This report will show you the number of visits coming from each referring domain, allowing you to assess the impact of your referral sources.

How to improve Referral Traffic? Enhance partnerships with websites that refer traffic by collaborating on content, such as guest posts or shared/complementary promotions. Additionally, consider creating shareable content or valuable niche information that encourage users to link back to your site.

#2 – Conversion Rate

Conversion Rate for an e-shop focused on referrals, measures the percentage of visitors who come from referral links and successfully complete a desired action, such as making a purchase.

Why track Conversion Rate? The conversion rate from referrals measures the percentage of visitors who take a desired action (e.g., making a purchase) after arriving from a referral source. This metric helps assess the quality of traffic coming from those referrals.

How to calculate Conversion Rate? Calculate your conversion rate by dividing the number of conversions from referral traffic by the total number of visitors from those sources, then multiply by 100 to get your percentage. A high conversion rate indicates that referral traffic is effectively driving engaged and interested customers, making it a crucial metric for assessing the success of referral marketing efforts.

How to improve Conversion Rate? Make sure that the landing pages for referral traffic are optimized for conversions, with clear CTAs and relevant content. Analyze which referral sources yield higher conversion rates and focus efforts on strengthening those relationships.

#3 – Cost per Acquisition

Cost per Acquisition (also known as CPA), for an e-shop focused on referrals, means the total cost associated with acquiring a new customer through referral channels. This includes expenses related to referral incentives, marketing efforts, and any associated promotional costs.

Why track Cost per Acquisition? CPA from referrals measures how much you spend to acquire a customer through referral sources. This helps you evaluate the cost-effectiveness of your referral programs and partnerships. A lower CPA indicates a more efficient referral program, as it shows the e-shop is successfully gaining customers at a reduced cost.

How to calculate Cost per Acquisition? Calculate Cost per Acquisition (CPA) by dividing the total costs associated with your referral programs (like commissions, payouts, discounts, incentives) with the number of customers acquired through those referrals.

How to improve Cost per Acquisition? Optimize your referral program by offering attractive incentives that motivate both existing customers and referral partners. Regularly review and adjust the program based on performance to ensure it remains cost-effective, while driving quality referrals.