WooCommerce focused on Sales?
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).
WooCommerce focused on Sales?
Must have 3 Acquisition metrics to monitor
#1 - Customer Acquisition Cost
Customer Acquisition Cost (also known as CAC) for an e-shop focused on sales, refers to the total expense incurred to acquire a new customer.
Why track Customer Acquisition Cost? This metric is crucial for understanding the efficiency of marketing and sales strategies. CAC measures how much it costs to acquire a new customer. Tracking this metric helps you understand the efficiency of your sales strategies and ensures that your acquisition costs are sustainable compared to the lifetime value of a customer.
How to calculate Customer Acquisition Cost? Calculate CAC by dividing total marketing and sales expenses over a specific period by the number of new customers acquired in that same period.
How to improve Customer Acquisition Cost? To lower CAC, refine your targeting strategies to reach the most likely buyers. Optimize your sales funnel by improving the customer journey and using data to personalize marketing messages. Additionally, consider (test) better or cost-effective marketing channels like content marketing, newsletters and social media.
#2 - Conversion Rate
Conversion Rate for an e-shop focused on sales, measures the percentage of visitors who complete a desired action, typically making a purchase.
Why track Conversion Rate? It’s a key performance indicator that helps assess the effectiveness of your e-shop and marketing efforts. The conversion rate indicates the percentage of visitors who purchase from your e-shop. This metric is crucial for understanding how effectively your online shop and sales tactics turn visitors into customers, highlighting areas for improvement.
How to calculate Conversion Rate? Calculate your conversion rate by dividing the number of purchases by the total number of visitors, then multiply by 100, to find your percentage.
How to improve Conversion Rate? Enhance the user experience by optimizing e-shop navigation and simplifying the checkout process. A/B test different elements, such as product descriptions, images, and CTAs, to see which combinations lead to higher conversions.
#3 - Average Order Value
Average Order Value (also known as AOV), for an e-shop focused on sales, represents the average amount spent by your customers per transaction.
Why track Average Order Value? Understanding AOV helps you identify customer purchasing behavior and opportunities for increasing revenue. Average Order Value helps you understand purchasing behavior and provides insights into up-selling and cross-selling opportunities.
How to calculate Average Order Value? Calculate Average Order Value (CPA) by dividing your total revenue by the number of orders.
How to improve Average Order Value? Increase AOV by implementing up-selling and cross-selling strategies before-during-after the checkout process. Offering discounts for bulk purchases or creating product bundles can encourage customers to spend more. Additionally, personalize product recommendations based on purchasing history to enhance relevancy.
