Page 62 - eCommerce Made Easy - Training Guide

“Product revenue” is directly tied to the last two because it refers to the

revenue generated by a particular product or set of products. This can help you

to better manage inventories of certain products in demand by existing

customers.

Long term measures

Metrics classified as long term measures are those that will help you better

understand your existing customers, how to retain them to make you the most

profit, those that are engaged with your brand or product, and to keep business

sustainable as a result.

“New customers to repeat customer ratio” is a metric that measures revenue

coming from new customers and revenue coming from repeating customers by

comparing how active they are on your site and how much money is coming

from each group.

This metric can help you see what is making repeat customers stay and how you

can implement that to make sure your new customers stay. Even if new visitors

and daily traffic make up the bulk of activity on your site, the greatest profits

normally come from repeating customers.

You have to really care for your existing customers. You have to pay special

attention to the “customer lifetime value” metric, which refers to those
customers with the potential to become long term assets.

“Customer lifetime value” can be measured by tracking those customers that

have made more than one purchase in a determined period of time. Said period

of time should depend on the type and pricing of the products that they

purchase.

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