Chapter 6: Analyzing and Improving Your Performance
10 min read time
Track traffic sources to know where your website visitors are coming from. Here are some things you may want to know about your website:
Conversion rate tells you how many clicks lead to desired actions like purchases, installs, or sign-ups helping you understand the impact of ads on your business. The conversion rate is calculated by dividing the number of users who took your desired action by the total number of users and then multiplying that number by 100 to get the percentage.
Next, calculate the bounce rate, which indicates the percentage of users who visit your website, take no action and then leave. The bounce rate is calculated as the percentage of all site visits during which users viewed just one page and made only one request. A high bounce rate suggests that either there is nothing on the page that users want to engage with, or that the visitors do not align with the page's intended audience or purpose.To reduce bounce rate:
Average order value shows how much money customers spend on average when they order from your website. It is calculated by dividing the total product revenue by the total number of transactions.
Customer lifetime value measures the total net profit a company can expect from a customer throughout their entire relationship. It considers your customer’s initial purchase, repeat purchases, and the average duration of their relationship with the company. Calculating CLV helps you understand customer loyalty and whether your customers will continue to make repeat purchases.
40+ sales and conversion-boosting Shopify apps. Zero headaches.
