It’s a New Year, which means setting new goals for 2023! Recession-proof your brand by implementing the top ecommerce metrics to increase revenue in 2023.
While it's important keep a pulse on some of the more common metrics like LTV and AOV, you may be overlooking other key metrics that can inform operational efficiencies/inefficiencies and provide valuable insights that can directly impact your bottom line.
Here, we've compiled a shortlist of the top ecommerce metrics you should measure to help maximize profitability and manage your brand in 2023:
- Order Accuracy
- Return Rate
- Depletion Days
- Stock Coverage Ratio by Product
- Profit Margin by Channel
- Discount Code Cohort Upsell
Order accuracy is the percentage of orders that are fulfilled correctly. Improving order accuracy can help to reduce the number of returns and customer complaints, which can save time and money for your business.
Returns cost you time, money, and customers. Improve your return rate by understanding which products are being returned most frequently and analyzing those returns and associated comments to gain insight into the cause of the returns, such as sizing or damage.
It's important to understand the Inventory Velocity of your products if you want to maximize profits. For example, you wouldn’t want to discount fast-moving products. On the flip side, you will want to discount slow moving products, so you can backfill that shelf space with products that you are selling more of (and not at a discount).
Depletion days should be used in tandem with inventory velocity and stock coverage ratio. Whether you are manufacturing products in-house, or you have a purchasing team, it's important to equip those responsible with ensuring you have products to sell with accurate data and a forecasted Out of Stock date.
Stock Coverage Ratio
Is your inventory properly stocked, overstocked, or understocked? Understanding seasonal sales trends and appropriate stock levels for each of your SKUs can help minimize your opportunity cost (lost sales from 'Out of Stock'), while giving you the ability to be more flexible with your free cash (ie. Not overbuying inventory that will sit on the shelf forever or that you will have to discount to move).
Profit Margin by Channel
Profit margin is the difference between the sales revenue your business generates and the costs your business incurs. It is the measure of your business's profitability. Successful businesses tend to have higher profit margins. Get insight into the profit margins you are experiencing based on the marketing channels being used to invest in the channels that are giving you the highest yield.
Discount Code Cohort Upsell
If you are giving customers a discount, then you're expecting it will increase their likelihood to purchase a particular item and also continue to make purchases with you in the future. It’s important to understand how effective your discount codes are at driving purchasing behavior without cutting into your profit margin. It’s also helpful to build out customer cohorts based on purchasing trends and apply the discount codes that would be most attractive to that group based on trends.
Join us for a webinar on Thursday, January 26 at 1:00 PM, EST to learn how you can master these metrics with Glew, how our customers have leveraged them for success, and how you can set up automated reports to deliver these metrics to you in a format that’s easy to understand and take action on.
WHEN: Thursday, January 26
TIME: 1:00 PM EST | 12:00 PM CST | 10:00 AM PST
Save your spot to sign up! (Can't make it live? No problem. Just register to get the recording afterwards).