Today’s complex ecommerce environment is challenging, to say the least, for brands who want to grow business revenue predictably in 2023.
Executive teams are having conversations about how to navigate new technology and improve customer shopping experiences so they can win against the competition. As they pour over all the data available across tech platforms, many are feeling the effects of data overload. With so many metrics, dashboards, and attribution models at their fingertips, it can feel confusing which metrics really matter and where they should put their focus to create real ecommerce growth.
What metrics should brands measure to predictably and profitably grow their ecommerce revenue?
While there are thousands of metrics you could spend time and money analyzing, there is actually a simple formula you can use to determine where to focus effort to create focused, predictable growth. The simple ecommerce growth formula we share below uses three metrics, which allow you to make a real impact on growth without trying to boil the entire ocean all at once.
Focus on These Three Metrics to Increase Ecommerce Revenue in 2023
There are three main metrics that really move the needle when you want to increase ecommerce growth.
The three metrics that have the biggest impact are: Traffic, Conversion Rate, and Average Order Value.
And the way they work together to increase your revenue is this simple formula:
While this formula is quite simple, don’t be tempted to skip over its significance.
Using this formula, you can not only forecast your ecommerce revenue, but you can also use it to estimate competitors' momentum or work backward for a view into Amazon’s top-line ecommerce revenue.
Tadpull: Built on Science - Executed by People
We are scientists and digital marketers. We leverage data to maximize ecommerce performance and growth, so answering the question of how to grow customer revenue is one we work closely on with clients each day.
We seek a deeper understanding of our customers, site visitors, and peers. Our mission to walk a mile in your shoes is a guiding force behind our technology and exceptional customer service. We care because we've been there.
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