Five indicators to pay attention to in the early stage of operation_Shop operation

　　At the beginning of the business, for every seller, there seem to be countless standards that can be used to measure the development of their own store. So are we really going to track each tracked parameter, or are there so many, especially effective, and representative parameters that can play a well-known role? In this article, we will share some common and effective indicators for you to solve such doubts.

　　Every business may hope that there is a number in every aspect of the business that can intuitively let us see the corresponding situation. This is indeed possible, but to do this, we don’t have to do anything, and we can only devote ourselves to various data and find the meaning of these data. Fortunately, in the early stages of business, we didn’t need to mine data as deeply, and the reports analyzed by Google are enough for us to use.

　　In the early stages of business, we need to keep a focus on the indicators that can be simplified to as few as five. These five indicators will provide precise information for our business behavior and allow us to formulate actionable plans based on it as a standard. The common feature of these five metrics is that they allow us to understand every process from knowing to buying.

　　1. Traffic

　　First and most important indicator is the traffic we obtain. We must know how many people clicked into our store.

　　There is no doubt that it is very important that many people have visited our store. However, behind the total traffic, there are some more important indicators that point to development opportunities. To understand the things behind it, we must try our best to understand our visitors. Where did they come from and how many? These two points sound related to marketing channels, and it is indeed the case. By tracking these two points, we can more effectively formulate plans and strategies for future advertising promotions. And after we know how people find our stores and their actual areas, we can find promotion channels that are more suitable for our products, and even give us tips on the direction of business expansion.

　　2. Conversion rate

　　After conversion rate is an important indicator that we need to keep a close eye on after traffic. This indicator can distinguish "visitors" from "customers", allowing us to see how many "customers" are there.

　　When recording conversion rates, what we recorded is not a simple conversion rate, but three:

　　1. How many people have added the product to the shopping cart; (Original author of this article: Ying Shanghui Lao Wei, please keep it if you reprint it)

　　2. How many people have entered the payment page;

　　3. How many people completed the entire purchase.

　　There are three links, each link can provide useful information to help us diagnose the business situation of the store.

　　If you are not satisfied with the conversion, you must perform corresponding conversion rate optimization (CRO). The optimization process depends on each person's respective industrial structure, customer source, and product type. For different stores, you can always find optimization solutions that suit you, and you can also find a lot of content about CRO in various forums and blogs, so we won’t spend more chapters here. Let's move on to the next metric.

　　3. Total sales

　　When we talk about core indicators, how can we not mention the total sales. To a certain extent, this number is an important reference for determining the life and death of our business. Even if we don’t talk about it here, I believe there will be no merchants who don’t pay attention to this indicator.

　　When tracking total sales, what we need to confirm most are the factors that affect our sales and the reasons why they affect our sales. This will include our overall attention and research on the performance of each sales channel and the trends in which our sales volumes change over time.

　　If you want to have a deeper understanding of the overall situation, we can start by studying sales data from the past few months and then break them down into daily data. See if you can find some commonalities or market trends when sales rise. If such commonality does exist, then we must consider whether we can actively create such conditions, or copy such conditions into daily sales to increase our total sales.

　　For example, we found that Monday's sales were high, and the reasons for the general high sales were unclear. At this time, we can compare sales and traffic. How did people find our shop on Monday? What's different from other days? I believe that this way of thinking can bring us the possibility of improving our performance.

　　4. Average order amount (original author of this article: Ying Shanghui Lao Wei, please keep it if you reprint it)

　　Average order amount is an important parameter affected by products, discount strategies and many other factors. The ideal situation is that the average order amount can continue to increase. This means that our products are recognized by consumers, our discount measures are well formulated, and our pricing meets or exceeds consumer expectations of the value of the product.

　　Average order amount (AOV) reveals to us the average consumption level of consumers when completing purchases, and the average order amount can directly affect our profit margins and cost control aspects. If AOV can be improved, we can guarantee a certain degree of profitability even if we do not actively seek cheaper sources of goods and more traffic channels (of course it is best to find them).

　　5. New customers vs repeat customers

　　Focusing on the ratio of new customers to repeat customers is the last indicator we want to talk about. The ideal situation is that these two types of consumers have reached a relatively balanced state, but since the factors that attract new customers are difficult to control from time to time, we need to keep our attention while adjusting our various strategies in a timely manner. Usually, attracting new consumers is more difficult and more expensive than directly enhancing the stickiness of customers who have already consumed. However, whenever we want to expand our business, we need to constantly attract fresh blood, so it is best to treat every customer as a first-time consumption to serve. With the accumulation of reputation, the subsequent natural expansion will allow us to get good fruits.

　　As we become more mature in our business, we will gradually become less satisfied with these five most basic indicators and parameters in our subsequent operations. At that time, we will need more detailed and accurate data. At the beginning of the start, keeping good records, analysis and application of these five indicators will also lay the foundation for future data analysis work.

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