7 Simple Sales Performance Metrics to Increase Sales
Your Ecommerce site analytics shows all the details on who is visiting, your sales, and so much more. But, how do you know which metrics are important? Read below to find out about the sales performance metrics to increase sales. The most important metrics, are…
This one should be a no-brainer. Your transactions metric indicates the amount of customers who are buying something from your website. It could be a single item or multiple items. When a customer checks-out, that is one transaction. This metric is the most basic indication of growth or decline in your sales. Each month, you want your transactions metric to increase for your revenue to grow.
2. Average Transaction Value
The average transaction value refers to the overall money spent in each customer transaction. If your Average Transaction Value increases, your revenue increases as well. This metric could indicate an increase in the volume of products purchased on average per transaction, or, an increase in the average price of products per transaction.
Of course, more revenue is the end-goal. This is the clearest indicator of your sales success. If your revenue is consistently increasing, you are making more money and increasing sales.
4. Unique Visitors
Repeat customers are great, but, without new ones your sales will stagnate. Unique visitors are the only way to increase your customer base and drive sales. The more unique visitors that come to your site, the more sales and increased revenue.
5. Lead Response Time
The faster your response time to new leads, the more sales you will generate. In general, new leads should be contacted the same day as the lead-capture comes in. The more leads you generate, and the faster you reach out to them, the more you will increase sales.
6. Sales Cycle Metrics
Once your leads have been responded to, the Sales Cycle Metrics indicate the likelihood of a conversion, based on previous sales trends. Through your Sales Cycle Metrics, you can see where bottlenecks will likely form, and address any sales obstacles preemptively.
7. Sales Cost to Revenue Ratio
Once you are generating more clients, check your Sales Cost to Revenue Ratio metric. This is the total take-home revenue your platform is generating, after commissions, salary, manufacturing, sales, and shipping expenses. This metric makes clear if there is an incongruity in the amount of sales generated versus your take home revenue at the end of the day. The sales cost to revenue ratio allows you to better manage the efficiency of your overall team and process.
Use these seven sales performance metrics to increase sales for your ecommerce site. There are many more, but these are the essentials. Feel free to leave comments or questions in the space below, and we will respond promptly. Thanks for reading!
Sell More. Work Less.
Erin is the Co-Founder of Listing Mirror.