Did you know, that if you don’t analyze the metrics of your online shop effectively, you can possibly lose out on money as well as customers? While assessing the outcomes of each marketing activity undertaken by you, what you should also be examining is your return on investment. Not sure what this particular metric implies? Or feeling confused about how you can calculate the ROI ideally? Then put away everything else for a few minutes to carefully go through this post. Today, we will be talking about eCommerce ROI and the strategies that you can implement to calculate it.
What does eCommerce ROI mean?
Return on investment (ROI) is one of the main measurements to consider with your eCommerce business. It is the metric that shows the benefits generated by particular marketing activity.
How to compute eCommerce ROI?
Prepared to figure out how to calculate the ROI for your eCommerce business? Get it rolling with these five simple tips:
Set up Google Analytics
Before your organization dispatches its next SEO campaign, you ought to make a Google Analytics account. Using Google Analytics, your marketing team can observe fundamental metrics, such as conversions, bounce rate, and website traffic.
While setting up your account with Google Analytics, it’s vital to ensure conversion tracking, as it can help your company monitor & log each conversion happening on your online shop.
For eCommerce sites, Google Analytics features a separate tab for monitoring eCommerce-related changes and other actions such as cart abandonment.
Dispatch eCommerce tracking
Once your Google Analytics account is all set, you must enable eCommerce tracking as well. If your business has a mobile version of its online store, include a tracking code there also.
Follow these quick and easy steps to enable eCommerce tracking –
- Log into Google Analytics
- Click on ‘Admin’, go to ‘View’, and select ‘Ecommerce Settings’
- Switch on the ‘Enable Ecommerce button
- Click ‘Done’
Next, set up a tracking code by following these simple steps –
- Log into Google Analytics
- Choose ‘Admin’
- Go to the ‘Property’ column, click on ‘Tracking Info’, and then select ‘Tracking Code’
- Copy the Global Site Tag and paste it in the <head> of all your webpages
Now that Google Analytics and tracking code have been taken care of, your marketing team can begin monitoring your website’s SEO performance. Though conversion rate is the most important metric to focus on, you must also pay attention to these –
- Time on page
- Bounce rate
- Check-out abandonment rate
- Average order value
Check Google Analytics regularly
For the best outcomes, you must monitor your Google Analytics on a regular basis. Every month, it’s useful to create a performance report that you can show to the company’s decision-makers. You can likewise utilize it to examine your methodology and calculate the ROI of your eCommerce business.
Work out your eCommerce ROI
After compiling all the required info, you can start calculating the eCommerce ROI. For your reference, given below is the formula to calculate eCommerce ROI –
(Profit – Investment) / Investment x 100 = Return on Investment
Want to grow your business with customized digital marketing and web optimization solutions for your business?