Accoriding to authors, an ecommerce website optimisation should start with analysing “Average Order Value”, because high conversion rate and amount of orders does not indicate that the store is successful. I do agree with this statement, as every transaction involves extra costs, such as shipping cost, payment for transaction etc. Therefore, it is more beneficial for ecommerce store to have less transactions, but high Average Order Value. These stats can be easily pulled out from either Woocommerce dashboard or in Google Analytics in Ecommerce tab:
Authors had some suggestions how to increase AOV, such as setting free shipping or discounts above AOV, which are very useful suggestions. Customers like special deals and they are reluctant to pay for shipping. Free shipping encourages them to buy more in order to have free shipping. From my personal experience, we had a free shipping on all orders special offer, this allowed us to increase number of transactions dramatically, whereas the revenue didn’t grow.
Another great KPI is Average Order Profit which allows us more intelligently allocate budget and efforts to operational and customer acquisition.
Moving on to Customer Acquisition Cost kpi, which allows to better understand which channel is more efficient and profitable in acquiring new customer, while minimising cost. This metrics is not directly available in Woocommerce platform, but this KPI can be pulled out from Google Analytics:
Authors say that companies should not use too many metrics, as prevents from seeing holistic picture. Instead, they should focus on metrics that matter for a particular store.