(Newswire.net— July 6, 2022) — Consumers have more choices than ever before, using those choices to vote with their wallets. That’s why it’s more important than ever for businesses to focus on creating a strong eCommerce strategy to help them stand out from the competition.
What are eCommerce benchmarks?
Ecommerce benchmarks are performance indicators that help businesses compare their performance against that of their industry peers. By understanding where they stack up, companies can identify areas they need to improve to compete.
One way to do that is by understanding and utilizing ecommerce benchmarks. Knowing how your business stacks up against others in your industry, you can identify areas where you need to improve to meet your customers’ needs better. As a business owner, you should always look for ways to optimize your operations and improve your bottom line. Industry benchmarks can help you do just that.
Not sure where to start? Here are a few key ecommerce benchmarks to keep in mind as you develop your ecommerce strategy:
1. Average Order Value (AOV)
This is one of the most critical ecommerce benchmarks to track. Your AOV will give you insights into how much each customer spends on average when purchasing from your store. If you’re not happy with your current AOV, you can do several things to try and increase it. For example, you could offer discounts or free shipping for orders over a certain amount. Or, you could upsell customers by cross-selling complementary products.
2. Conversion Rate
Your conversion rate is another critical metric to track. This is the percentage of visitors to your site who take action and make a purchase. If you’re not happy with your current conversion rate, you can do several things to try and increase it. For example, you could offer discounts or free shipping for orders over a certain amount. Or, you could upsell customers by cross-selling complementary products.
3. Customer Retention Rate
Customer retention is vital for any business, but it’s essential for eCommerce businesses. Why? Because it costs more to acquire a new customer than to keep an existing one. That’s why your customer retention rate is one of the most critical ecommerce benchmarks to track. If you’re not happy with your current customer retention rate, you can do several things to try and increase it. For example, you could offer loyalty programs or discounts for repeat customers.
4. Average Shipping Costs
This is another essential metric to track, especially in a competitive industry. Your customers are comparing your shipping costs to your competitors, so it’s crucial to ensure you’re offering competitive rates. If you’re not happy with your current average shipping costs, there are some things you can do to try and decrease them. For example, you could negotiate with your shipping partners or offer free shipping for orders over a certain amount.
5. Average Order Processing Time
This is the average amount of time it takes for you to process an order and get it shipped out to the customer. If you’re not happy with your current average order processing time, there are some things you can do to try and decrease it. For example, you could streamline your order fulfillment process or invest in automation.
There are numerous benefits of incorporating ecommerce benchmarks into your business, including:
a) Improved customer satisfaction: By understanding how your business measures up against others in your industry, you can identify areas where you need to improve to meet your customers’ needs better.
b) Increased sales: A higher conversion rate indicates that more visitors to your site are taking the desired action, such as making a purchase.
c) Improved customer loyalty: A higher customer lifetime value indicates that your customers are loyal and have a high level of satisfaction with your products or services.
d) Increased brand awareness: A higher Net Promoter Score indicates that your customers are more likely to recommend your business to others, which can help increase brand awareness.
Conclusion
Ecommerce benchmarks can be a valuable part of any ecommerce strategy. By understanding how your business measures up against others in your industry, you can identify areas where you need to improve to meet your customers’ needs better. Implementing a benchmarking strategy can help you improve your customer satisfaction, increase sales, and improve customer loyalty.