In business there are many metrics that you can keep track of. A lot of organizations like to track metrics that simply make them look good and they showcase these to the public to leave a better impression on people. However, if you really want online business success, you need to do the right analytics and track core metrics that can tell you how well you are performing.
A lot of organizations chase metrics that aren’t really that important and this is how they get misguided even further. In the end, remember that profit is the most important metric in business, both online and offline. If you are measuring metrics that constantly get improved, but your profits remain the same, then you have to ask yourself if they are really important.
1. Website visits
Your website should be your main HQ online. This is why it needs to be the biggest target for existing and potential customers. If this is the case, then it is absolutely essential to measure the number of visits your website has. However, if your most important strategic location is somewhere else, you can measure visits on other places as well.
No matter what kind of campaign you are employing to get web traffic, the number of visits is a key metric that can show you how well it’s working. If your number of visitors is increasing steadily each month, it’s a sign that your strategies are good.
If not, then you need to consider changing things and analyzing your business needs and marketing channels.
2. Bounce rate
Having a lot of people visit your site is not a clear indicator that you are doing well. You might be able to drive traffic to where you need it, but is the traffic meaningful? This is very important to know. Bounce rate is a metric that shows how many visitors instantly leave your site without opening anything on it.
A visitor has “bounced” when he or she enters your home page and leaves without clicking on any other pages, links, images, and so on. Overall, you will want your bounce rate to be as low as possible. If your bounce rate is really high, then your strategy for attracting visitors, even if effective, is not attracting people that are interested in what you have to offer.
On the other hand, a high bounce rate could also indicate that your site looks unprofessional, that its poorly designed and that people don’t seem to trust you enough or like your presence to find out more about your business.
3. Conversion rate
Conversion rate is yet another metric that can tell you how good you are at turning your traffic into buyers. The higher your conversion rate is, the more visitors that come to your site become customers. This is a very important metric for all online businesses.
In order to improve this metric, you should perform A/B tests of your website elements, work on creating credibility and trust on your website and make the whole buying process shorter and simpler. This means that it should only have fields and steps that are essential.
Additionally, provide your customers as many payment methods as you can and make sure that you drive the right traffic and target people that might be interested in buying your products or services.
These are the three-essential metrics for an online business. If they are all performing well and have a positive result, chances are that your business is doing well and that you are making the right moves.