10 key data points you should monitor for your D2C eCommerce website

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In the ever evolving and intensely competitive world of direct-to-consumer (D2C) eCommerce, having a robust data strategy is crucial. Whether you own a Shopify, WooCommerce or a Magento store, understanding and utilising key data metrics can significantly impact business growth and customer satisfaction. In this blog, we’ll explore the 10 essential data points you should monitor for your Shopify, WooCommerce or a Magento D2C website and how these can improve your online D2C business.

1. Traffic Sources

Why understanding data on Traffic Sources is important?

To understand which is/are the most effective marketing channels for your D2C website, it is important to understand various sources responsible for bringing traffic to your D2C website. Whether it’s organic search, paid ads, social media, or email campaigns, knowing your traffic sources allows you to allocate your marketing budget more efficiently.

Example: If you notice a significant quantum of traffic coming from Instagram, you might decide to invest more in Instagram ads or influencer partnerships. Conversely, if your email campaigns are underperforming, you could refine your email marketing strategy.

2. Conversion Rate

Why understanding data on Conversion Rate is important?

The conversion rate measures the percentage of visitors out of the total number of visitors who visited your site and  who made a purchase. It’s a critical metric for assessing the effectiveness of your website’s design, product offerings, and overall user experience.

Example: If your conversion rate is low, you might consider optimising your product pages, simplifying the checkout process, or offering limited-time discounts to encourage purchases.

*Benchmark for Conversion rates in India:

  1. Low Conversion Rate: Below 1%
  2. Moderate Conversion Rate: 1% to 3%
  3. High Conversion Rate: Above 3%

* These benchmarks apply broadly to various product categories within the eCommerce sector, such as fashion and apparel, electronics, health and beauty products, home goods, and other consumer goods typically sold through D2C models. For more niche industries, such as luxury goods or digital products, these benchmarks might vary slightly.

3. Average Order Value (AOV)

Why understanding data on Average Order Value (AOV) is important?

Average Order Value more commonly known as AOV is the average amount spent each time a customer places an order. Monitoring this metric helps you understand your customers’ purchasing behavior and identify opportunities to increase revenue fromo your D2C website.

Example: Implementing upsell and cross-sell strategies can boost your AOV. For instance, offering product bundles or suggesting related products during the checkout process can encourage customers to spend more and increase the order value.

*Benchmark for Average Order Value in India:

Good AOV: ₹1,500 to ₹3,000

4. Customer Acquisition Cost (CAC)

Why understanding data on Customer Acquisition Cost (CAC) is important?

Customer Aquisition Cost a.k.a CAC is the cost associated with acquiring a new customer. Knowing this metric helps you evaluate the efficiency of your marketing efforts and determine the profitability of your campaigns.

Example: If your CAC is high, you may need to optimize your ad targeting or explore more cost-effective marketing channels. Reducing your CAC can lead to higher profitability and sustainable growth.

*Benchmark for Customer Acquisition Cost in India:

  1. Low CAC: Below ₹500
  2. Moderate CAC: ₹500 to ₹1,500
  3. High CAC: Above ₹1,500

5. Customer Lifetime Value (CLV)

Why understanding data on Customer Lifetime Value (CLV) is important?

CLV or Customer Lifetime Value represents the total revenue you can expect from a customer over the duration of their relationship with your brand. It’s a vital metric for understanding the long-term value of your customers and planning retention strategies.

Example: By increasing CLV, you can justify higher CAC and invest more in customer retention programs. Loyalty programs, personalized marketing, and excellent customer service are effective ways to enhance CLV.

*Benchmark for Customer Lifetime Value (CLV) in India:

  1. Low CLV: Below ₹5,000
  2. Moderate CLV: ₹5,000 to ₹15,000
  3. High CLV: Above ₹15,000

6. Cart Abandonment Rate

Why understanding data on Cart Abandonment Rate is important?

The cart abandonment rate measures the percentage of shoppers who add items to their cart but don’t complete the purchase. A high abandonment rate indicates potential issues in your checkout process or additional costs deterring customers.

Example: Implementing strategies like sending abandoned cart emails, offering discounts, or simplifying the checkout process can reduce the abandonment rate and recover lost sales.

*Benchmark for Cart Abandonment rate in India:

  1. Low Cart Abandonment Rate: Below 50%
  2. Moderate Cart Abandonment Rate: 50% to 70%
  3. High Cart Abandonment Rate: Above 70%

7. Website Performance Metrics

Why understanding data on Website Performance Metrics is important?

Website performance, including load times and mobile responsiveness, directly affects user experience and SEO rankings. Monitoring these metrics ensures your site runs smoothly and provides a positive customer experience.

Example: Slow load times can lead to higher bounce rates and lower conversion rates. Optimizing images, leveraging caching, and using a content delivery network (CDN) can improve site speed and performance.

8. Product Performance

Why understanding data on Product Performance is important?

Analyzing which products are selling well and which are underperforming helps you make informed inventory and marketing decisions.

Example: If a particular product is popular, you might increase its visibility on your site or run targeted promotions. Conversely, if a product isn’t selling, you could consider discontinuing it or offering discounts to clear inventory.

9. Customer Feedback and Reviews

Why understanding data on Customer Feedback and Reviews is important?

Customer feedback provides valuable insights into what your customers like and dislike about your products and services. Monitoring reviews helps you improve your offerings and build trust with potential customers.

Example: Addressing negative reviews promptly and making necessary improvements based on feedback can enhance customer satisfaction and loyalty. Positive reviews can be highlighted to boost credibility and attract new customers.

*Benchmark for Customer Feedback and Review in India:

Please read our detailed article on understanding Customer Feedback and Reviews. 

10. Return and Refund Rates

Why understanding data on Return and Refund Rates is important?

High return and refund rates can indicate issues with product quality, descriptions, or customer expectations. Monitoring these rates helps you identify and address underlying problems.

Example: If you notice a high return rate for a specific product, you might review its quality, update its description, or provide more accurate sizing information. Reducing returns can save costs and improve customer satisfaction.

*Benchmark for Return and Refund rates in India:

  1. Low Returns and Refund Rate: Below 5%
  2. Moderate Returns and Refund Rate: 5% to 10%
  3. High Returns and Refund Rate: Above 10%

In Conclusion

Monitoring these 10 key data points on your Shopify, WooCommerce or a Magento D2C website can provide invaluable insights into your D2C business’s performance. By understanding and acting on these data points, you can optimize your marketing efforts, improve customer experience, and drive sustainable growth.

Don’t let the complexities of managing an eCommerce store hold you back. Let BiCSoM be your partner in achieving eCommerce excellence. Contact us today to learn how we can help you take your Shopify, WooCommerce, or Magento D2C website to new heights.

Together, we can turn insights into action and drive your business forward.