Read Google Analytics KPIs for E-commerce

Read Google Analytics KPIs for E-commerce

Do you know how to identify the right KPIs?

Finding the right KPIs or performance keys on all Google Analytics pages can be challenging. In this article, we want to show you where and how to read the data that will help you understand if your e-shop is growing and how. 

It all starts with defining concrete and measurable objectives for your E-Commerce. Only subsequently will it be possible to work on measuring the progress of the actions that bring the set objectives to fruition through KPIs.

For example, if you wanted to set the goal of increasing traffic to your eCommerce by 30% in the next 6 months, the right performance indicator to determine this could be the number of unique visitors or, more specifically, the sources of traffic coming from of visitors such as web advertising, search engine optimization, direct brand search.

Some objectives may have multiple KPIs to understand the performance trend; in this case, the advice is to narrow the scope of the indicators only to have two or three data points with a strong impact.

So, starting from the basic objective that an eCommerce has the purpose of selling products or services, below we introduce the main KPIs to use to understand better in which direction your online sales activities are going by comparing different periods and improving your audience’s understanding.

KPI list for eCommerce objective to monitor sales

Average Order Value  (in Google Analytics: Conversions -> E-commerce -> Overview)

This long-term indicator lets you understand whether the value of the cart is rising or falling compared to a previous period. It is also helpful in analyzing whether cross-selling actions in the product sheet or cart work.

Conversion Rate  (inside Google Analytics: Conversions -> E-commerce -> Overview)

It is the percentage calculated from the number of visits compared to the sales made on your eCommerce. This long-term indicator must also be compared to better evaluate the trend. It is interesting to monitor the separate conversion rates for the different online sales channels to understand which ones perform better.

Add to Cart Rate  (in Google Analytics Enhanced: Conversions -> E-commerce -> Purchase Behavior)

It is an indicator that appears automatically if the advanced version of Analytics is activated on your eCommerce. It is an indicator that must be compared with different periods to analyze whether something is holding the buyer back from viewing the product or adding it to the cart.

Cart abandonment rate  (in Google Analytics Enhanced: Conversions -> E-commerce -> Purchase Behavior)

It is an indicator that also, in this case, is automatic, that Enhanced Analitycs is activated and gives us the percentage of people who put a product in the cart and then don’t finish the checkout. The reasons can be different, such as having inserted banners or distractions at the time of purchase, unexpected costs arriving at the cart, or registration forms that are too complex. If the rate is too high, an in-depth analysis should be carried out on this point. 

Conversion rate New users vs Returning Users  (inside Google Analytics: Audience -> Behavior -> New and Returning)

This indicator is interesting because it allows us to understand how the purchases made by a customer who enters for the first time or at subsequent moments are related. In the specific case below, you can see how buyers prefer to purchase after sessions following the first, even if the number of new visitors is higher. This makes us understand that the average buyer makes comparisons in other eCommerce and then returns to make purchases because it is more convenient.

Conversion Times  (in Google Analytics: E-commerce -> Multi-Channel Funnel -> Time to Conversion)

This indicator counts the number of days from the buyer’s first interaction until the time of purchase. It helps us understand how many days an average customer takes to compare prices on subsequent days and then complete the order.

Let’s start this journey to understand better how and what actions to take to improve sales through your online store’s web marketing activities, starting from the analysis through Enhanced Analytics. 

Also Read : Types Of Keywords – Types Of Keywords


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