Every business generates tons of data every day, but what are the essential daily metrics that you need to be keeping track of? These are the indicators that will tell you at a glance whether your business is going where you want it to, and whether you’re about to have a crazy day.
Daily metric: Abandonment Rate
It’s all well and good if your site is getting tsunami-sized waves of traffic, but how many of these prospective customers are abandoning their carts? You’ll also want to check out your “day zero cancellation rate,” or the percentage of your customers who make an order or sign up for a subscription, then cancel the same day, before receiving your product or service. The average eCommerce website has a 69.23% abandonment rate, and our benchmark for day zero cancellation is 2.1%. How does your business compare to these metrics? If your rates are regularly running higher, you might have a problem.
If your abandonment and day zero cancellation rates are higher than you want, the first place to look is your traffic sources. You may be attracting site visitors who aren’t a great fit for your product. Are the customers who abandon carts mostly coming from one source? Alternatively, it might be time to test some alternative pricing.
Daily metric: Free Trial Conversion Rate
Does your business have a free trial/free sample program? Have you been running any other types of discount promotions? If so, free trial conversion rate is the daily metric for you. For subscription businesses, this is the rate of customers who stay subscribed for another billing cycle. For traditional straight-sale businesses, this is the rate of customers who go on to buy the full-priced product.
So what’s a “good” or “bad” free trial conversion rate? Benchmarks vary, but based on this helpful list, for B2B SaaS companies, free trials that don’t require a credit card have conversion rates that vary between 2-25%, (depending on the company.) We’ve seen at LimeLight that B2B companies that do require a card range from 50% to the rare 70%. Meanwhile, B2C conversions are typically lower than B2B, but nothing to sneeze at. Birchbox reported that 50% of customers who tried a free sample of a beauty product bought the full-priced version, while another report put the median conversion rate for a B2C free trial at 57%.
Free trial conversions are a good way to gauge customers’ reaction to your product. If your free trial conversion rate is low, this means your product might not be meeting your customers’ needs. However, if your rate suddenly starts fluctuating, there may be a complicating variable. Once again, take a look at your traffic sources and how you’ve been promoting your product. New customers from those sources may not be the right market for you.
Daily Metric: Average Fulfillment Time
Average fulfillment time, AKA average number of days to ship, is a daily metric that should rarely vary. However, when it does, you’ll need to act fast. If your average fulfillment time changes, this is a sign that something is going wrong with your fulfillment process, and fulfillment center problems usually take more than a few minutes to resolve, so you want to catch them early.
As your shipping time lengthens, your customers will often get antsy, which may have financial ramifications for you. Customers who think that their package has disappeared into the mist often initiate chargebacks, which costs you the price of the product they ordered, chargeback fees, and a blow to your reputation.
Daily Metric: Orders
This one seems like a no-brainer, but orders per day is an essential daily metric. However, keep in mind that a high number of orders can cause you as many problems as a low number of orders. A sudden spike in orders can cause a customer experience problem as your business has to scramble to meet the demand. Your call center, fulfillment center, and inventory may struggle to keep up, resulting in unexpected wait times for customers.
To keep the day-to-day running smoothly, you’ll find that having a dashboard of daily metrics is important. Not only can you keep a finger on the pulse of your business, but having that information already gathered at your fingertips makes it easy for you to make decisions quickly without having to track down the data first. That’s why at LimeLight, we make sure our clients always have the latest data at their fingertips so they can quickly identify problems and discover the key levers of growth for their business.
Keep the ball rolling and read about the 4 lesser-known metrics you’re ignoring.