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• CRO Program : Best Practices and KPIs to Track [2024]

  8 mai, par Erin

  Driving traffic to your website is only one part of the equation ; the second part is getting those visitors to convert by completing a desired action — creating an account, signing up for a newsletter or completing a purchase. 

  But if you fail to optimise your website for conversions, you’ll have a hard time guiding visitors further down the funnel and turning them into customers.

  That’s where a CRO program (or conversion rate optimisation) can help. 

  This article will cover conversion rate optimisation best practices and outline key metrics and KPIs to start tracking to see an improvement in your conversion rates.

  What is a CRO program ? 

  In the simplest terms, a CRO program — also called a CRO plan — is a digital marketing strategy. It focuses on implementing different tactics that can lead to an increase in conversion rate and maximising revenue. 

  

  One thing to remember is that the definition of “conversion” varies from business to business. The most obvious type of conversion would be a financial transaction or a completed form — but it comes down to what you consider a valuable action. 

  Many different actions can count as conversions, depending on your marketing goals. 

  Besides making a purchase, other common examples of key conversion moments include creating a new account, signing up for a free trial, booking a demo and subscribing to an email newsletter. 

  Another thing worth noting is that while the average conversion rate on e-commerce websites is 3.76%, it might fluctuate across different industries and device types. Case in point — desktop devices have higher conversion rates than mobile devices, clocking in at 4.79% and 3.32%, respectively. 

  So, in addition to defining your key conversion moments, you should also go over conversion insights relevant to your specific industry. 

  

  The importance of conversion rate optimisation 

  You’d be right to assume that the ultimate goal of a conversion rate optimisation process is to drive revenue through higher conversion rates — but don’t focus solely on the numbers. The core principle of a CRO program is improving the customer experience. Once you’ve achieved that, the increase in conversion rate will follow. 

  

  According to a recent report, global conversion rate optimisation (CRO) software sales are expected to reach $3.7 billion by 2032 — up from $1.1 billion in 2021. 

  This growth indicates the increasing interest in strategies and tools that can help optimise the conversion funnel. Businesses are looking for ways to keep potential customers engaged and improve the average conversion rate — without necessarily increasing their spending. 

  Here are a few reasons why a CRO program deserves a spot in your broader digital marketing strategies : 

  • It can lower your cost per acquisition (CPA) : A CRO program is about optimising your conversion funnel by leveraging existing assets and website traffic rather than increasing your spending — which lowers the costs of acquiring new customers and, in turn, drives ROI. 
  • It can maximise customer lifetime value (CLV) : If you can turn one-time buyers into repeat customers, you’ll be one step closer to building a loyal user base and increasing your CLV. 
  • It can lead to increased sales and boost your revenue : Higher conversion rates typically mean higher revenue ; that’s arguably the most obvious benefit of implementing a CRO program. 
  • It improves the overall user experience : The goal is to make your site more accessible, easier to navigate and more engaging. Delivering the experience people want — and expect — when navigating your website is one of the core principles of a CRO program.
  • It helps you to get to know your customers better : You can’t meet your customers’ needs without taking the time to know them, create user personas and understand their preferences, pain points and conversion barriers they may be facing. 

  Conversion optimisation gives you a competitive edge in revenue and brand reputation. 

  5 CRO best practices 

  

  Here are five conversion rate optimisation strategies and best practices that can make a real difference in the customer experience — and drive potential conversions. 

  Create a CRO roadmap in advance 

  First and foremost, you’ll need a well-defined “game plan” that aligns with and reflects your conversion goals. 

  A CRO roadmap is a detailed manual that outlines how to implement different elements of your CRO-related efforts. Marketing teams can refer to this step-by-step framework for test planning, prioritisation and resource allocation while optimising their marketing strategy. 

  While conversion rate optimisation can be a complex process — especially when you don’t know what to tackle first — we’ve found that there are three things you need to consider when setting the foundations of a successful CRO program : 

  • The “why” behind your website traffic : You’re likely using different online marketing strategies — from SEO to pay-per-click (PPC). So, it’s best to start by gathering channel-specific conversion insights through marketing attribution. Then identify which of these efforts have the biggest impact on your target audience. 
  • The so-called “conversion blockers” that tell you where and why visitors tend to leave without completing a desired action : Funnel analysis might reveal problematic pages — drop-off points where you tend to lose most of your visitors. 
  • Your “hooks” : User feedback can be of great help here ; you can learn a lot by simply asking your customers to fill out a quick online survey and tell you what motivated them to take action.

  Before working on that “game plan,” perform a pre-test analysis. 

  Matomo combines web analytics and user behaviour analytics with features like Heatmaps, Session Recordings, Form Analytics, Funnel Analytics, A/B Testing and User Flow. It can give you those initial benchmarks for measuring progress and a potential increase in conversion rate. 

  Validate your ideas with A/B and multivariate testing 

  Conversion rate optimisation is an iterative process. So, it shouldn’t come as a surprise that A/B testing variants of page layouts, CTAs, headlines, copy and other elements is a big part of it.

  Multivariate and A/B testing allows you to test a wide range of elements across your site and identify what works — and, more importantly, what doesn’t — in terms of driving conversions.

  On that note, Matomo’s A/B Testing feature can support your conversion rate optimisation process by identifying variants that perform better based on statistical significance. 

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  Get to know your website visitors 

  Driving conversions comes down to understanding potential customer’s pain points and needs — and delivering an experience that positions you as the solution and gets them to take action. 

  Here are a few things that can help you understand your website visitors better : 

  • Collecting customer feedback through surveys and using it to identify main areas for improvement 
  • Creating detailed customer personas and optimising your website design and messaging based on your target audience’s pain points, needs and wants 
  • Using heatmaps — colour-coded data visualisation tools that illustrate user interactions — and scroll maps to get a comprehensive overview of online sessions and identify the most engaging elements and those that stand out as potential conversion barriers 

  Matomo’s Heatmaps can help you identify the most-clicked elements on the page and show how far users scroll — providing powerful user insights you can use to optimise these pages.

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  Remove friction points 

  As we previously discussed, identifying friction points and barriers to conversion — issues that prevent visitors from converting — is one of the crucial aspects of developing a CRO plan. 

  Many different “conversion blockers” are worth looking into, including : 

  • Lengthy or otherwise complex checkout processes 
  • No guest checkout feature 
  • Device type, browser and OS compatibility issues 
  • Slow site speed and other technical issues
  • Lack of free shipping and limited payment methods 
  • Absence of social proof (customer reviews and testimonials) and trust badges

  Once you’ve identified what’s slowing down or completely discouraging users from reaching key conversion moments, take the time to address it. 

  Switch to text-based CTAs 

  Calls-to-action (CTAs) play a crucial role in guiding customers from interest to action. However, sometimes they fail to do their job — encouraging website visitors to proceed to the next step — effectively. 

  The most obvious reason is that your CTAs aren’t visually engaging or clear enough. In that case, you can try using action-oriented language and stronger visual elements and aligning the CTA copy with the context of the page. 

  But more often than not, the issue comes down to a phenomenon called “banner blindness” — the tendency of website visitors to ignore (either intentionally or unintentionally) elements on a page that resemble banner ads. 

  And if that’s what’s preventing visitors from converting, consider switching to text-based CTAs. 

  Conversion rate optimisation metrics and KPIs 

  At this point, you should know the outcomes you hope to achieve. Your next step should be to figure out how you’re going to measure and analyse results — and identify the changes that made the most impact on your conversion funnel. 

  After all, your CRO action plan should be based on data — assumptions and “gut feelings” will rarely lead to a notable increase in conversion rates. 

  

  That brings us to key performance indicators (KPIs) : 

  Tracking CRO metrics and website KPIs can help you understand the customer’s journey and path to purchase, identify opportunities for improving the user experience (UX) and determine how to optimise conversions.

  That said, you shouldn’t try to track every metric in the book ; think about your ultimate goal and identify the metrics and KPIs most relevant to your business. 

  We’ll assume that you’re already tracking macro- and micro-conversions. However, we’ve outlined a few additional key conversion rate optimisation metrics you should keep an eye on to make sure that your CRO program is performing as intended : 

  • Cost-per-conversion : By measuring how much you spend on each successful conversion — again, completed forms, sign-ups and sales all count as key conversion moments — you’ll be in a better position to assess the cost-effectiveness of your online marketing strategies.
  • Starter rate : This metric tells you the number of people who start filling out the form, after seeing it. This metric is particularly important for companies that rely on getting leads from forms. 
  • Average order value (AOV) : This metric is important for e-commerce sites to understand the value of their transactions. AOV calculates the average monetary value of each order.

  That’s not all ; you can also use a web analytics tool like Matomo to gain granular insights into visitors : 

  • Unique, new and returning visitors : Tracking the number of new and returning visitors your website gets within a given timeframe will help you understand your user base and determine if your content resonates with them. While you want a constant stream of new traffic, don’t overlook the importance of returning visitors ; they’re the foundation of a loyal customer base.
  • User flows : By analysing the user flows, you’ll have a visual representation of how visitors use your website, which will help you understand their journey and the specific path they take. 
  • Bounce rate : This metric tells you how many users viewed a single page on your site and ended up leaving before they took any kind of action. As such, it’s a clear indicator of how good your content, CTAs and website layout are at keeping users engaged.
  • Exit rate : Another key metric to track is the exit rate — the percentage of users who drop off at a specific page. High-exit pages usually lack important information and CTAs, cause frustration or otherwise fail to meet users’ expectations. Keep in mind that there’s a difference between bounce rate and exit rate — the latter involves users who viewed at least one other page. 

  There are many other user engagement metrics you should keep an eye on in addition to the ones mentioned above — including time on-page, actions per visit, scroll depth and traffic source. You’ll find all this information — and more — in Matomo’s Page Analytics Report. 

  Conclusion 

  Implementing a CRO program can be a time-consuming and iterative process. However, it’s vital for guiding your marketing efforts and making data-driven decisions that’ll ultimately help you drive growth and reach your business goals. 

  It’s best to start by identifying where your website visitors come from and what contributes to — or prevents them from — taking further action. But that’s easier said than done. You’ll need to leverage web analytics tools like Matomo to gather powerful user insights and monitor your website’s performance. 

  As an all-in-one, privacy-friendly web analytics solution, Matomo combines traditional web analytics and advanced behavioural analytics — delivering a consistent experience based on 100% accurate, unsampled data.

  Join the 1 million websites that have chosen Matomo as their web analytics platform. Start your 21-day free trial today — and see how Matomo can help you improve your website’s conversion rates. No credit card required.

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• How (and Why) to Run a Web Accessibility Audit in 2024

  7 mai, par Erin

  When most businesses design their websites, they primarily think about aesthetics, not accessibility. However, not everyone who visits your website has the same abilities or access needs. Eight percent of the US population has visual impairments.

  The last thing you want is to alienate website visitors with a bad experience because your site isn’t up to accessibility standards. (And with growing international regulation, risk fines or lawsuits as a result.)

  A web accessibility audit can help you identify and fix any issues for users with impaired vision, hearing or other physical disabilities. In this article, we’ll cover how to conduct such an audit efficiently for your website in 2024.

  What is a web accessibility audit ?

  A web accessibility audit is a way to evaluate the usability of your website for users with visual, auditory or physical impairments, as well as cognitive disabilities or neurological issues. The goal is to figure out how accessible your website is to each of these affected groups and solve any issues that come up.

  To complete an audit, you use digital tools and various manual accessibility testing processes to ensure your site meets modern web accessibility standards.

  Why is a web accessibility audit a must in 2024 ?

  For far too long, many businesses have not considered the experiences of those with disabilities. The growing frustrations of affected internet users have led to a new focus on web accessibility laws and enforcement.

  Lawsuits related to the ADA (Americans with Disabilities Act) reached all-time highs in 2023 — over 4,500 digital-related lawsuits were filed. The EU has also drawn up the European Accessibility Act (EAC), which goes into effect in June 2025.

  But at the end of the day, it’s not about accessibility legislation. It’s about doing right by people.

  

  This video by voice actor, YouTuber, and surfer Pete Gustin demonstrates why accessibility measures are so important. If buttons, navigation and content sections aren’t properly labelled, sight-impaired people who rely on speech-to-text to browse the web can’t comfortably interact with your site.

  And you’re worse off for it. You can lose some of your best customers and advocates this way. 

  With stronger enforcement of accessibility regulations in the US and new regulations coming into effect in the EU in 2025, the time to act is now. It’s not enough to “keep accessibility in mind” — you must take concrete steps to improve it.

  Who should lead a web accessibility audit ?

  Ideally, you want to hire a third-party web accessibility expert to lead the audit. They can guide you through multiple stages of manual accessibility testing to ensure your site meets regulations and user needs. 

  Experienced accessibility auditors are familiar with common pitfalls and can help you avoid them. They ensure you meet the legal requirements with proper solutions, not quick fixes.

  If this isn’t an option, find someone with relevant experience within your company. And involve someone with “skin in the game” in the process. Hire someone with visual impairments to usability test your site. Don’t just do automated tests or “put yourself in their shoes.” Make sure the affected users can use your site without issues.

  Automated vs. manual audits and the danger of shortcuts

  While there are automated audits, they only check for the bare minimum :

  • Do your images have alt tags ? (They don’t check if the alt tag is descriptive or just SEO junk text.)
  • Are clickable buttons identified with text for visually impaired users ?
  • Is your text size adjustable ?
  • Are your background and foreground colours accessible for colour-blind users ? Is there a sufficient contrast ratio ?

  

  They don’t dive into the user journey (and typically can’t access login-locked parts of your site). They can be a good starting point, but it’s a bad idea to rely completely on automated audits.

  They’ll miss more complex issues like :

  • Dynamic content and animated elements or videos that could put people with epilepsy at risk of seizures
  • A navigational flow that is unnecessarily challenging for users with impairments
  • Video elements without proper captions

  So, don’t rely too much on automated tests and audits. Many lawsuits for ADA infractions are against companies that think they’ve already solved the problem. For example, 30% of 2023 lawsuits were against sites that used accessibility overlays.

  Key elements of the Web Content Accessibility Guidelines (WCAG)

  The international standard for web accessibility is the Web Content Accessibility Guidelines (WCAG). In the most recent version, WCAG 2.2, there are new requirements for visual elements and focus and other updates.

  Here’s a quick overview of the key priorities of WCAG :

  

  Perceivable : Any user can read or listen to your site’s content

  The first priority is for any user to be able to perceive the actual content on your site. To be compliant, you need to make these adjustments and more :

  • Use text that scales with browser settings.
  • Avoid relying on colour contrasts to communicate something.
  • Ensure visual elements are explained in text.
  • Offer audio alternatives for things like CAPTCHA.
  • Form fields and interactive elements are properly named.

  Operable : Any user can navigate the site and complete tasks without issue

  The second priority is for users to navigate your website and complete tasks. Here are some of the main considerations for this section :

  • Navigation is possible through keyboard and text-to-speech interfaces.
  • You offer navigation tools to bypass repeated blocks of content.
  • Buttons are properly titled and named.
  • You give impaired users enough time to finish processes without timing out.
  • You allow users to turn off unnecessary animations (and ensure none include three flashes or more within one second).
  • Links have a clear purpose from their alt text (and context).

  Understandable : Any user can read and understand the content

  The third priority is making the content understandable. You need to communicate as simply and as clearly as possible. Here are a few key points :

  • Software can determine the default language of each page.
  • You use a consistent method to explain jargon or difficult terms.
  • You introduce the meaning of unfamiliar abbreviations and acronyms.
  • You offer tools to help users double-check and correct input.
  • The reading grade is not higher than grade 9. If it is, you must offer an alternative text with a lower grade.
  • Use consistent and predictable formatting and navigation.

  This intro to accessibility guidelines should help you see the wide range of potential accessibility issues. Accessibility is not just about screen readers — it’s about ensuring a good user experience for users with a wide range of disabilities.

  Note : If you’re not hiring a third-party expert for the manual accessibility audit, this introduction isn’t enough. You need to familiarise yourself with all 50 success criteria in WCAG 2.2.

  How to do your first web accessibility audit

  Ready to find and fix the accessibility issues across your website ? Follow the steps outlined below to do a successful accessibility audit.

  Start with an automated accessibility test

  To point you in the right direction, start with a digital accessibility checker. There are many free alternatives, including :

  • Accessibility Checker
  • Silktide accessibility checker
  • AAArdvark

  When choosing a tool, check it’s up-to-date with the newest accessibility guidelines. Many accessibility evaluation tools are still based on the WCAG 2.1 version rather than WCAG 2.2.

  The tool will give you a basic evaluation of the accessibility level of your site. A free report can quickly identify common issues with navigation, labelling, colour choices and more. 

  But this is only good as a starting point. Remember that even paid versions of these testing tools are limited and cannot replace a manual audit.

  Look for common issues

  The next step is to manually look for common issues that impact your site’s level of accessibility :

  • Undescriptive alt text
  • Colour combinations (and lack of ability to change background and foreground colours)
  • Unscalable text
  • Different site content sections that are not properly labelled

  The software you use to create your site can lead to many of these issues. Is your content management system (CMS) compliant with ADA or WCAG ? If not, you may want to move to a CMS before continuing the audit.

  Pinpoint customer journeys and test them for accessibility 

  After you’ve fixed common issues, it’s essential to put the actual customer journey to the test. Explore your most important journeys with behavioural analytics tools like session recordings and funnel analysis.

  Analysing funnel reports lets you quickly identify each page that usually contributes to a sale. You will also have an overview of the most popular funnels to evaluate for accessibility.

  If your current web analytics platform doesn’t offer behavioural reports like these, Matomo can help. Our privacy-friendly web analytics solution includes funnel reports, session recordings, A/B testing, form analytics, heatmaps and more.

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  If you don’t have the budget to test every page individually, this is the perfect place to start. You want to ensure that users with disabilities have no issues completing the main tasks on your site. 

  Don’t focus solely on your web pages 

  Accessibility barriers can also exist outside of your standard web pages. So ensure that other file formats like PDFs and videos are also accessible. 

  Remember that downloadable materials are also part of your digital experience. Always consider the needs of individuals with disabilities when accessing things like case studies or video tutorials. 

  Highlight high-priority issues in a detailed report

  To complete the audit, you need to summarise and highlight high-priority issues. In a larger company, this will be in the form of a report. W3’s Web Accessibility Initiative offers a free accessibility report template and an online tool to generate a report.

  For smaller teams, it may make sense to input issues directly into the product backlog or a task list. Then, you can tackle the issues, starting with high-priority pages identified earlier in this process.

  Avoid quick fixes and focus on sustainable improvement

  As mentioned, AI-powered overlay solutions aren’t compliant and put you at risk for lawsuits. It’s not enough to install a quick accessibility tool and pat yourself on the back.

  And it’s not just about accessibility compliance. These solutions provide a disjointed experience that alienates potential users. 

  The point of a digital accessibility audit is to identify issues and provide a better experience to all your users. So don’t try to cut corners. Do the work required to implement solutions that work seamlessly for everyone. Invest in a long-term accessibility remediation process.

  Deliver a frictionless experience while gaining insight into your users

  An accessibility audit is crucial to ensure an inclusive experience — that a wide variety of users can read and interact with your site.

  But what about the basic usability of your website ? Are you sure the experience is without friction ? Matomo’s behavioural analytics tools can show how users interact with your website.

  For example, heatmaps can show you where users are clicking — which can help you identify a pattern, like many users mistaking a visual element for a button.

  Plus, our privacy-friendly web analytics are compliant with GDPR, CCPA and other data privacy regulations. That helps protect you against privacy-related lawsuits, just as an accessibility audit protects you against ADA lawsuits.

  And it never hurts that your users know you respect their privacy. Try Matomo free for 21-days. No credit card required.

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• 7 Ecommerce Metrics to Track and Improve in 2024

  12 avril, par Erin

  You can invest hours into market research, create the best ads you’ve ever seen and fine-tune your budgets. But the only way to really know if your digital marketing campaigns move the needle is to track ecommerce metrics.

  It’s time to put your hopes and gut feelings aside and focus on the data. Ecommerce metrics are key performance indicators that can tell you a lot about the performance of a single campaign, a traffic source or your entire marketing efforts. 

  That’s why it’s essential to understand what ecommerce metrics are, key metrics to track and how to improve them. 

  Ready to do all of the above ? Then, let’s get started.

  What are ecommerce metrics ? 

  An ecommerce metric is any metric that helps you understand the effectiveness of your digital marketing efforts and the extent to which users are taking a desired action. Most ecommerce metrics focus on conversions, which could be anything from making a purchase to subscribing to your email list.

  You need to track ecommerce metrics to understand how well your marketing efforts are working. They are essential to helping you run a cost-effective marketing campaign that delivers a return on investment. 

  For example, tracking ecommerce metrics will help you identify whether your digital marketing campaigns are generating a return on investment or whether they are actually losing money. They also help you identify your most effective campaigns and traffic sources. 

  Ecommerce metrics also help you spot opportunities for improvement both in terms of your marketing campaigns and your site’s UX. 

  For instance, you can use ecommerce metrics to track the impact on revenue of A/B tests on your marketing campaigns. Or you can use them to understand how users interact with your website and what, if anything, you can do to make it more engaging.

  What’s the difference between conversion rate and conversion value ?

  The difference between a conversion rate and a conversion value is that the former is a percentage while the latter is a monetary value. 

  There can be confusion between the terms conversion rate and conversion value. Since conversions are core metrics in ecommerce, it’s worth taking a minute to clarify. 

  Conversion rates measure the percentage of people who take a desired action on your website compared to the total number of visitors. If you have 100 visitors and one of them converts, then your conversion rate is 1%. 

  Here’s the formula for calculating your conversion rate :

  Conversion Rate (%) = (Number of conversions / Total number of visitors) × 100

  

  Using the example above :

  Conversion Rate = (1 / 100) × 100 = 1%

  Conversion value is a monetary amount you assign to each conversion. In some cases, this is the price of the product a user purchases. In other conversion events, such as signing up for a free trial, you may wish to assign a hypothetical conversion value. 

  To calculate a hypothetical conversion value, let’s consider that you have estimated the average revenue generated from a paying customer is $300. If the conversion rate from free trial to paying customer is 20%, then the hypothetical conversion value for each free trial signup would be $300 multiplied by 20%, which equals $60. This takes into account the number of free trial users who eventually become paying customers.

  So the formula for hypothetical conversion value looks like this :

  

  Hypothetical conversion value = (Average revenue per paying customer) × (Conversion rate)

  Using the values from our example :

  Hypothetical conversion value = $300 × 20% = $60

  The most important ecommerce metrics and how to track them

  There are dozens of ecommerce metrics you could track, but here are seven of the most important. 

  Conversion rate

  Conversion rate is the percentage of visitors who take a desired action. It is arguably one of the most important ecommerce metrics and a great top-level indicator of the success of your marketing efforts. 

  You can measure the conversion rate of anything, including newsletter signups, ebook downloads, and product purchases, using the following formula :

  

  Conversion rate = (Number of people who took action / Total number of visitors) × 100

  You usually won’t have to manually calculate your conversion rate, though. Almost every web analytics or ad platform will track the conversion rate automatically.

  Matomo, for instance, automatically tracks any conversion you set in the Goals report.

  

  As you can see in the screenshot, your site’s conversions are plotted over a period of time and the conversion rate is tracked below the graph. You can change the time period to see how your conversion rate fluctuates.

  If you want to go even further, track your new visitor conversion rate to see how engaging your site is to first-time visitors. 

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  Cost per acquisition

  Cost per acquisition (CPA) is the average cost of acquiring a new user. You can calculate your overall CPA or you can break CPA down by email campaign, traffic source, or any other criteria. 

  Calculate CPA by dividing your total marketing cost by the number of new users you acquire.

  

  CPA = Total marketing cost​ / Number of new users acquired 

  So if your Google Ads campaign costs €1,000 and you acquire 100 new users, your CPA is €10 (1000/100=10).

  It’s important to note that CPA is not the same as customer acquisition cost. Customer acquisition cost considers the number of paying customers. CPA looks at the number of users taking a certain action, like subscribing to a newsletter, making a purchase, or signing up for a free trial.

  Cost per acquisition is a direct measure of your marketing efforts’ effectiveness, especially when comparing CPA to average customer spend and return on ad spend. 

  If your CPA is higher than the average customer spend, your marketing campaign is profitable. If not, then you can look at ways to either increase customer spend or decrease your cost per acquisition.

  Customer lifetime value

  Customer lifetime value (CLV) is the average amount of money a customer will spend with your ecommerce brand over their lifetime. 

  Customer value is the total worth of a customer to your brand based on their purchasing behaviour. To calculate it, multiply the average purchase value by the average number of purchases. For instance, if the average purchase value is €50 and customers make 5 purchases on average, the customer value would be €250.

  Use this formula to calculate customer value :

  

  Customer value = Average purchase value × Average number of purchases

  Then you can calculate customer lifetime value using the following formula :

  

  CLV = Customer value × Average customer lifespan

  In another example, let’s say you have a software company and customers pay you €500 per year for an annual subscription. If the average customer lifespan is 5 years, then the Customer Lifetime Value (CLV) would be €2,500.

  Customer lifetime value = €500 × 5 = €2,500

  Knowing how much potential customers are likely to spend helps you set accurate marketing budgets and optimise the price of your products. 

  Return on investment

  Return on investment (ROI) is the amount of revenue your marketing efforts generate compared to total spend. 

  It’s usually calculated as a percentage using the following formula :

  

  ROI = (Revenue / Total spend) × 100

  If you spend €1,000 on a paid ad campaign and your efforts bring in €5,000, then your ROI is 500% (5,000/1,000 × 100).

  With a web analytics tool like Matomo, you can quickly see the revenue generated from each traffic source and you can drill down further to compare different social media channels, search engines, referral websites and campaigns to get more granular view. 

  

  In the example above in Matomo’s Marketing Attribution feature, we can see that social networks are generating the highest amount of revenue in the year. To calculate ROI, we would need to compare the amount of investment to each channel. 

  Let’s say we invested $1,000 per year in search engine optimisation and content marketing, the return on investment (ROI) stands at approximately 2576%, based on a revenue of $26,763.48 per year. 

  Conversely, for organic social media campaigns, where $5,000 was invested and revenue amounted to $71,180.22 per year, the ROI is approximately 1323%. 

  Despite differences in revenue generation, both channels exhibit significant returns on investment, with SEO and content marketing demonstrating a much higher ROI compared to organic social media campaigns. 

  With that in mind, we might want to consider shifting our marketing budget to focus more on search engine optimisation and content marketing as it’s a greater return on investment.

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  Return on ad spend

  Return on ad spend (ROAS) is similar to return on investment, but it measures the profitability of a specific ad or campaign.

  Calculate ROAS using the following formula :

  

  ROAS = Revenue / Ad cost 

  A positive ROAS means you are making money. If you generate €3 for every €1 you spend on advertising, for example, there’s no reason to turn off that campaign. If you only make €1 for every €2 you spend, however, then you need to shut down the campaign or optimise it. 

  Bounce rate

  Bounce rate is the percentage of visitors who leave your site without taking another action. Calculate it using the following formula :

  

  Bounce rate = (Number of visitors who bounce / Total number of visitors) × 100

  Some portion of users will always leave your site immediately, but you should aim to make your bounce rate as low as possible. After all, every customer that bounces is a missed opportunity that you may never get again. 

  You can check the bounce rate for each one of your site’s pages using Matomo’s page analytics report. Web analytics tools like Google Analytics can track bounce rates for online stores also. 

  

  Bounce rate is calculated automatically. You can sort the list of pages by bounce rate allowing you to prioritise your optimisation efforts. 

  Don’t stop there, though. Explore bounce rate further by comparing your mobile bounce rate vs. desktop bounce rate by segmenting your traffic. This will highlight whether your mobile site needs improving. 

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  Click-through rate

  Your clickthrough rate (CTR) tells you the number of people who click on your ads as a percentage of total impressions. You can calculate it by dividing the number of clicks your ad gets by the total number of times people see it. 

  So the formula looks like this :

  

  CTR (%) = (Number of clicks / Total impressions​) × 100

  If an ad gets 1,000 impressions and 10 people click on it, then the CTR will be 10/1,000 × 100 = 1%

  You don’t usually need to calculate your clickthrough rate manually, however. Most ad platforms like Google Ads will automatically calculate CTR.

  What is considered a good ecommerce sales conversion rate ?

  This question is so broad it’s almost impossible to answer. The thing is, sales conversion rates vary massively depending on the conversion event and the industry. A good conversion rate in one industry might be terrible in another. 

  That being said, research shows that the average website conversion rate across all industries is 2.35%. Of course, some websites convert much better than this. The same study found that the top 25% of websites across all industries have a conversion rate of 5.31% or higher. 

  How can you improve your conversion rate ?

  Ecommerce metrics don’t just let you track your campaign’s ROI, they help you identify ways to improve your campaign. 

  Use these five tips to start improving your marketing campaign’s conversion rates today :

  Run A/B tests

  The most effective way to improve almost all of the ecommerce metrics you track is to test, test, and test again.

  A/B testing or multivariate testing compares two different versions of the same content, such as a landing page or blog post. Seeing which version performs better can help you squeeze as many conversions as possible from your website and ad campaigns. But only if you test as many things as possible. This should include :

  • Ad placement
  • Ad copy
  • CTAs
  • Headlines
  • Straplines
  • Colours
  • Design

  To create and analyse tests and their results effectively, you’ll need either an A/B testing platform or a web analytics solution like Matomo, which offers one out of the box.

  

  Matomo’s A/B Testing feature makes it easy to create and track tests over time, breaking down each test’s variations by the metrics that matter. It automatically calculates statistical significance, too, meaning you can be sure you’re making a change for the better. 

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