The total number of unique (counted only once) visitors to your website over a selected time period.
The total number of times a product was viewed over a selected time period.
The total number of products purchased over a selected time period.
The total revenue from sales over a period of time.
Incremental Revenue through VueX
Revenue resulting from the uplift in conversion rate and average order value in journeys powered by VueX
Assisted Revenue (visit)
Revenue from the sale of any product in a visit (session) with at least 1 click on Vue.ai modules over a given period.
Direct Revenue (visit)
Revenue from the sale of products (recommended on the VueX module) clicked and purchased in the same session over a given period.
Direct Cart additions (visit)
The total number of products (recommended on the VueX module) clicked and added to the cart in the same session over a given period.
Direct Products Purchases (visit)
The total number of products (recommended on the VueX module) clicked and purchased in the same session over a given period.
Direct Cart Additions (7 days)
The total number of products (recommended on the VueX module) clicked and added to the cart within 7 days.
Direct Product Purchases (7 days)
The total number of products (recommended on the VueX module) clicked and purchased within 7 days.
Direct Revenue (7 days)
Revenue from the sale of products (recommended on the VueX module) clicked and purchased within 7 days.
Click-Through Rate (CTR)
The number of clicks that the VueX recommendation module receives divided by the number of times the module is viewed.
CTR = Clicks/Impressions
By tracking the CTRs, the marketers can accurately determine the response that the recommendation modules are receiving. For example, if your recommendation module has more views but very few clicks, you can infer that your CTR is very low and that your users are not very engaged with your recommendations.
The metrics dashboard in Vue.ai displays the CTR for the personalised recommendations configured on your website. This metric helps you identify the success of your marketing efforts.
Average Order Value (AOV)
Average Order Value is the average amount spent each time a customer places an order on a website.
It helps you measure the long-term value of every individual customer. AOV is one of the most important metrics as it presents valuable insights on customers' buying patterns, marketing strategies, and product pricing.
AOV is calculated by dividing the total revenue generated in a specified period (month or year) by the total number of customer orders. For example, if the total revenue generated in Aug 2020 is $50,000 and the total number of customer orders is 500, then the AOV for Aug 2020 is $50.
Tracking your brand's average order value periodically helps you evaluate your online marketing efforts and product pricing strategies. Most times brands focus their marketing efforts on improving the conversion rate while it can be more profitable to increase the AOV. Increasing your AOV can help you get a bigger return on your investment. Large orders allow you to maximize the value of your customers before they switch to your competitors.
AOV can be a great way to increase your gross profit, but it is also important to track metrics such as conversion rate and revenue per visit.
How can Vue.ai help you drive up this metric?
- Bundle products together to avail of a slight discount on products instead of buying them separately.
- Up-sell high valued products to your customers by configuring relevant business rules in the recommendation strategies.
- Recommend products that are frequently bought together
- A/B testing multiple customer journeys to identify the journey that drives maximum AOV
Average Order Size
Average Order size refers to the average number of items sold in a single purchase. It is calculated by dividing the total number of products sold by the total number of invoices generated.
Average Order Size = Total number of products sold/Total number of invoices generated
This metric allows you to gain valuable insights into your merchandising strategies.
VueX offers various techniques to increase your average order size -
- Bundling strategies such as Style it With, Complete the look provide you with opportunities to cross-sell products across your catalog, and increase your average basket size.
- Frequently Bought Together strategy enables you to display products that are frequently purchased together thereby providing opportunities to increase your average basket size.
User Engagement Rate
User Engagement Rate measures the engagement that your recommendations are receiving from your customers. It is calculated as a percentage of unique visitors that click at least once on your recommendation. This metric provides valuable insights on how engaged your customers are with the recommendations configured on your website.
User Engagement Rate = (Total number of unique visitors with at least one click on Vue.ai module/total number of unique visitors visiting the website over a given period) * 100
This value is expressed as a percentage.
You can increase your user engagement with Vue.ai by:
- Placing VueX modules at touch points with the most traffic so that at least 50% of the traffic to the touchpoint can view the module.
- Leveraging VueX's 1:1 affinity-based personalisation to display products based on every users' preferences.
- Optimizing the placement of modules so that the module is viewed within 2 to 3 scrolls.
- Continuous A/B testing of multiple journeys to identify the best journey with increased user engagement.
Cart Abandonment Rate
Cart Abandonment Rate is the percentage of your customers who add items to their shopping cart but then abandon the cart and end their session before completing the purchase. It describes the rate of potential customers who leave without buying anything compared to the total number of shopping carts created. The typical shopping cart abandonment rate for online retailers varies between 60% and 80%.
The cart abandonment rate is calculated by dividing the total number of completed transactions by the total number of carts created, subtracting that value from 1, and then multiplying it by 100:
Cart Abandonment Rate = (Number of visits with a cart addition & no purchase)/(Number of visits with a cart addition) * 100
Average Revenue per User (ARPU)
Average Revenue per User (ARPU) is the average revenue each user brings to the business. It is calculated by dividing the total revenue by the total number of unique users.
ARPU = Total Revenue generated in time period/ Total unique visitors(users) in time period
If your total revenue is $200,000, with 1000 buyers, then your ARPU is $200.
A strategy aimed at attracting and engaging more high-value buyers can increase the ARPU for your business. ARPU is a vital metric and helps you evaluate the success of your company’s sales efforts. It is the method of estimating the value of each additional visitor. ARPU can be increased by either increasing the number of visitors purchasing on your website (your conversion rate) or increasing the amount of money spent per each visitor (average order value).
VueX offers a robust personalisation platform that can improve your ARPU by:
- Increasing purchase opportunities for your customer through cross-selling/up-selling using recommendation strategies such as frequently bought together, customers who bought this also bought, and so on.
- Provide complete access to modify the recommendation results by configuring business rules on top of models. You can manually set business rules targeting high valued products to be displayed on the recommendation results.
Revenue per Visit (RPV)
Revenue per Visit (RPV) is the total revenue generated in each visit. It is calculated by dividing the total revenue generated within any given time period by the total number of visits in that time period.
RPV = Total Revenue generated in time period/ Total unique visits(sessions) in time period
RPV = Conversion Rate * Average Order Value.
A recent article published by Doug Crowe on Shopify Plus highlights the surprising dangers of prioritizing conversion rate and AOV as the best measurements of marketing success.
A 2% conversion rate with an average order value of $15 is an inferior metric compared to a 2% conversion rate with an average order value of $995.
RPV is the best eCommerce metric to optimize your business. RPV combines acquisition metrics, conversion metrics, and AOV to reveal the true health of your eCommerce business. It’s perhaps the only metric that delivers an understanding of where to prioritise your marketing efforts in a truly comprehensive way. For example, if you’re aiming for long-term revenue growth and customer acquisition, your RPV will be on the lower side, and if you’re focused on driving profitability, your RPV will be higher.
Conversion Rate is the total number of orders placed divided by the total number of unique visitors to the website in a given time period expressed as a percentage. For example, if your website received 400 visitors in a month and has 20 sales, then the conversion rate is 5%.
Conversion rate = (Total orders placed/Total number of unique visitors) * 100
Knowing your conversion rate allows you to understand what percentage of your visitors place the orders that drive your revenue. It allows you to gauge your advertising efforts and identify the areas of improvement. You can improve your conversion rate through a process called conversion rate optimisation. Optimising your conversion rate improves the effectiveness of your website to boost sales with the same amount of traffic you are receiving. It also allows you to lower your customer acquisition costs by getting more value from the visitors you already have
Optimisation entails improving your sales funnel so that more of your visitors become your customers.
A/B Testing is a common practice to verify conversion improvements. VueX enables A/B testing multiple customer journeys to identify the best journey that optimizes your conversion rate.
Product Views per Visit
The average number of product pages viewed per visit. This is a vital metric as this is the first signal of true buying intent in a customer's journey.
Product Views per Visit = Total number of product pages viewed / Total number of sessions