How to increase ROI
Abandonment rate = 1 – (Number of closed orders) / (Number of opened carts)
How to reduce cart abandonment rate
create an easy and intuitive checkout process;
offer social login;
reduce the information requested on forms;
indicate, within the cart, all costs involved in the purchase;
offer different payment methods;
invest in security certificates for the website.
ROI
ROI ( Return On Investment ) represents
The Return on Investment. If you create an ad on Google Adwords, for example, you expect this action to bring customers to the store and for sales to increase. So, to know if the investment is really generating profits, ROI is applied.
To find this return on investment, you need to calculate the total amount invested and what was generated from that action. Then, use the following formula:
ROI (%) = [(Return on Investment – Total Stock Investment) / Total Stock Investment] x 100
As this indicator korea email list is one of the KPIs for e-commerce that shows the efficiency of strategies, it is interesting to compare its value for different actions.
invest in customer relationships, facilitating loyalty;
analyze the behavior of strategies to find best practices;
segment the audience and create targeted actions.
ROAS
ROAS ( Return on Advertising Spend
represents the Return on Advertising Investment. The difference between this metric and ROI is that it does not consider internal expenses, such as employee salaries. Only the investment made in the advertising campaign is taken into account. Its calculation is very simple:
ROAS (%) = (Revenue / Investment) x 100
Therefore, calculating and comparing the ROAS of different channels, such as Google, Facebook and others, is very interesting.
How to high converting sites increase ROAS
invest in Inbound Marketing;
always monitor campaign performance;
create good lead segmentation;
invest in aero leads retargeting strategy.
As we have seen in this article, e-commerce KPIs are essential to ensure the financial health of the business and the successful use of opportunities.
