Today, social shopping is experiencing an incredible speed of growth all over the world. Now, millions of people buy products directly inside their favorite social apps without leaving the feed. This change provides a new way for e-commerce brands to measure their campaign success. You can’t just rely on your usual web traffic metrics anymore. You need to know the conversion numbers that drive social commerce. If you track these metrics correctly, you can optimize your digital store for maximum sales.
Work out the social conversion rate.
Your social conversion rate is the most important metric for your in-app store. To calculate this number, you divide your total completed sales by the number of people who have visited your profile store. A healthy social shopping conversion rate is typically between two and four percent. If your number is less than one percent, you have a problem with your product pages. Your descriptions may confuse, or your prices may be too high for casual browsers.
In-App Cart Abandonment Tracking
Many users add items to their social shopping carts, but leave the app without paying. This behavior leads to a high cart abandonment rate, which is a big headache for brands. Keep an eye on this metric in your shop manager tab. If you have a high abandonment rate, then it’s likely your checkout process is too complex. Consider reducing unnecessary form fields or providing quicker payment options for easy buying. Lowering this number gives immediate account growth support to your digital business.
Average Order Value Metrics
Don’t just look at your total number of daily orders. You also need to keep an eye on your average order value, which is the amount of money a customer spends in a single visit. Try setting up simple product bundles or adding automated cross-sell recommendations to increase this number. For example, if a user adds a dress to their cart, suggest matching shoes before they check out. The more you can increase your average order size, the more profitable your ad campaigns will be.
Track Your Customer Acquisition Cost
You need to know exactly how much you’re paying to acquire a paying customer through social ads. To calculate your customer acquisition cost, divide your total ad spend by the number of new buyers you gained. You can’t have a profitable business model when you spend $50 on ads to sell a $20 item. See how this cost compares across different social platforms to determine where your ad budget converts best.
Calculate Return on Ad Spend
Your return on investment (ROI) for advertising is an indicator of the direct link that exists between the money you spend on marketing and the funds you bring in. As an example, if you invest $100 in a video campaign and end up making $500 in sales, your return ratio is five to one with the video campaign. If you have a high ratio, it indicates that your decisions regarding visual creativity and your target audience are bang on. With the help of this indicator, you will be able to identify advertising campaigns that are successful and securely boost their daily expenditures.
