KPIs to track for your Shopify store in 2021

It’s a new year, and we want to start this year off with a bang. So let’s get down to business and talk about how you know if your store is succeeding. There’s the easy metrics- revenues and profit, but there are many Key Performance Indicators, or KPIs, that should be tracked. This week on the podcast we’re talking all things KPIs. What to track, how to track, and what it all means. 

 

 

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show notes.

  • [13:41] Conversion Rate Optimization (CRO)
  • [15:23] Average Order Value (AOV)
  • [17:46] Customer Lifetime Value (CLTV)
  • [19:37] Customer retention rate
  • [22:49] Site speed
  • [27:47] Site ranking
  • [31:11] Click Through Rate (CTR)
  • [31:51] Cost Acquisition Cost (CAC)
  • [37:04] Store shoutout: Copper Cow Coffee
  • [37:55] Store shoutout: ElonWick

    resources. 

     

    transcript.

    Rhian (00:00):
    It's a new year, and we want to start this year off with a bang. So, let's get down to business and talk about how you know if your store is succeeding. There's the easy metrics, revenue and profit, but there are many key performance indicators, or KPIs, that should be tracked. This week on the podcast, we're talking all thing KPIs: what to track, how to track, and what it all means. Let's dig in. Welcome to Commerce Tea, a podcast to help you succeed on Shopify. I'm Rhian.

    Kelly (00:36):
    And I'm Kelly. Grab a mug and join us as we talk about all things commerce.

    Rhian (00:40):
    Hey, Kelly. How can merchants leverage customer data to drive more revenue and increase retention? How can they create personalized experiences customers love?

    Kelly (00:57):
    I recommend Octane AI, the leading buyer profile platform for Shopify and Shopify Plus merchants.

    Rhian (01:03):
    How does it work?

    Kelly (01:04):
    Octane AI features a shop quiz, Facebook Messenger and SMS, and opt-in tools. Using the shop quiz, merchants can get to know customers with interactive questions. From product recommenders to gift finders, you can learn about a customer's needs, preferences, pain points, and more. This information gets saved into buyer profiles, and you can sync your buyer profile data with your Facebook Messenger, SMS, email, and ad campaigns for personalized customer journeys.

    Rhian (01:29):
    What kinds of returns can brands expect?

    Kelly (01:31):
    Brands using the shop quiz have increased email signups by 16 times and driven a 28% increase in average order value. Facebook Messenger and SMS see 80 to 95% average open rates and drive up to a 20% increase in revenue. Better yet, Octane AI has plans for any size business and offers a 14-day free trial. Every plan gives you access to the shop quiz, Facebook Messenger, SMS, and opt-in tools. There are also plans available where Octane AI's experts will help you set up and optimize your tools for success.

    Rhian (02:03):
    That sounds great. Where can merchants go to learn more?

    Kelly (02:06):
    You can learn more, book a demo, or try it free at join.octaneai.com/commercetea. Again, that's join.octaneai.com/commercetea. Good morning, Rhian.

    Rhian (02:18):
    Good morning, Kelly!

    Kelly (02:20):
    Happy new year!

    Rhian (02:21):
    Happy new year!

    Kelly (02:23):
    We made it.

    Rhian (02:24):
    We did make it.

    Kelly (02:25):
    We made it out of 2020.

    Rhian (02:27):
    Yes, we did.

    Kelly (02:27):
    And you know what? Nothing's different.

    Rhian (02:33):
    I'm here for that positive outlook, Kelly.

    Kelly (02:35):
    Well, it's true.

    Rhian (02:41):
    We'll see what happens. I'm still feeling optimistic, but-

    Kelly (02:45):
    Same. Honestly, I love starting a new year because it means that I get to start ... I used to start a new notebook, but I am barely halfway through this one since I'm not taking many notes right now. So, that's not happening, but I get to start a brand new year for all of my reporting and everything. And I just absolutely love doing that.

    Rhian (03:04):
    And you love that. You love that.

    Kelly (03:06):
    I love a good number.

    Rhian (03:08):
    Yeah. Kelly loves a goal, y'all. Well, and one thing Kelly and I are doing outside of the podcast is we're doing a book challenge.

    Kelly (03:18):
    We are. We decided to do the Pop Sugar book challenge, which is, I think, 50 books in one year.

    Rhian (03:24):
    Yes.

    Kelly (03:25):
    Each book has a different prompt. What are we doing first?

    Rhian (03:29):
    We are doing Practical Magic, because one of the prompts is a book about magical realism, and we wanted to ease in.

    Kelly (03:37):
    That's a good way to ease in.

    Rhian (03:39):
    Yeah.

    Kelly (03:40):
    I will link to the book challenge in the show notes in case anyone's interested in joining us, because it's going to be a lot of fun. It does mean that we're reading basically a book a week.

    Rhian (03:49):
    Yeah. So, be ready. Be ready. That, and we're going to try to incorporate as many books as Web from 2PM, or Web, the founder of 2PM, recommends to read for 2021, as well. And I'm actually really excited for those. Some of them I've read, some I haven't, but I'd recommend checking out his list, as well.

    Kelly (04:08):
    Yeah, and I will definitely link that in the show notes, too. It has one of my absolute favorite books that I never shut up about on the list, which is Atomic Habits.

    Rhian (04:15):
    Oh my god, I saw that! I was like, "Oh, Atomic Habits is on this list. I'm finally going to have to read this book that Kelly always talks about."

    Kelly (04:25):
    Yes! And it also has High Output Management on there, and that's a book that Daniel, my husband, is constantly recommending that I read and is talking about all the time. So, I've read the first two chapters of it, and I can't get past the breakfast factory thingy, but I'll get to it.

    Rhian (04:41):
    I am excited to reread Shoe Dog, which I've read before. I'm excited to read Americana, which I've read before. I'm very nervous to read Moby Dick, which is on the list, because it's just ... Web, that's a big book.

    Kelly (04:57):
    You know what? We can decide which of these books we want to read. We don't have to read all of them.

    Rhian (05:02):
    That's true.

    Kelly (05:03):
    I do want to read Extreme Ownership though.

    Rhian (05:05):
    Okay. Let's do it. I can't wait! So, for those of you listening too, we want to hear what you're reading this year.

    Kelly (05:10):
    Yeah, and why it's Atomic Habits. Just saying. A great book. Okay. So, also kind of fun news, which I'll link in the show notes as well, is I've finally started writing newsletters again.

    Rhian (05:29):
    Yay!

    Kelly (05:30):
    I was doing a weekly newsletter for The Taproom all through 2019. It started in 2020. Then the pandemic hit, and I have not sent an email since March 25th. So, really excited to get back into it. There's a lot of crossover you'll see in the content that we do on the podcast, in The Taproom blog, in the newsletter, but I think it's fun topics to talk about. So, it's every Wednesday in your inbox at 10:00 A.M.

    Rhian (05:56):
    Woo!

    Kelly (05:56):
    So, I will post a link to subscribe to that as well.

    Rhian (05:59):
    I love that. I love that. I have the intention of doing that this year. We'll see what happens though. We'll see what happens.

    Kelly (06:06):
    You know what? That's a good place to start.

    Rhian (06:09):
    With intentions.

    Kelly (06:10):
    With intentions, yeah. Also, I just tried to ... So, the URL for the landing page to subscribe is newsletter.thetaproom.com/subscribe. It's like a Mailchimp landing page. I'm typing out the resources for this. I'm like, "Newsletter.com, do not own that domain." I'm so out of it.

    Rhian (06:32):
    It would be a hell of a domain to own though, to sell for a lot of money.

    Kelly (06:35):
    To sell, yes.

    Rhian (06:39):
    Okay. So, today we're talking about KPIs, and today is an acronym heavy day.

    Kelly (06:45):
    It is.

    Rhian (06:45):
    So, we will be adding probably more to our acronym page and linking to it. So, if y'all are like, "Why are they just speaking in letters?" there will be a resource.

    Kelly (06:57):
    It's because we're in the e-commerce industry, and it's just what we do.

    Rhian (07:00):
    Some of them are funny.

    Kelly (07:04):
    They are. Oh man, it's like-

    Rhian (07:06):
    Or I'm like a 14-year-old child, one of the two.

    Kelly (07:08):
    Yeah. Okay. So, KPIs. I work with a lot of merchants of varying sizes from brand new small business to multimillion dollars every year, easy eight figures a year. And everyone has a slightly different approach to reporting, from "We're going to try to report all the data and do everything we can with all the data that we collect," to "Well, I know what my revenue is."

    Kelly (07:37):
    So, I want to try to bridge that gap and give you some particular KPIs to monitor, to track, and to actually do something with, because two things usually happen. One, you don't track any data and then you don't actually have any data to base your decision-making around. And I'm very data-driven in everything that I do, and I want you to be the same way. Or you track so many KPIs that you get burned out just tracking the data and recording it, and then you don't actually do anything with it. So, data is only useful if you know what it is and know what to do with it.

    Rhian (08:16):
    Yeah, absolutely. I think you've really hit the nail on the head here with the collection of data without action, because so many of us have so much access to so much data, including just one the Shopify dashboard, right?

    Kelly (08:30):
    Yeah.

    Rhian (08:31):
    But then what?

    Kelly (08:33):
    Then what?

    Rhian (08:34):
    What's the and? What do you do afterwards? And data gets difficult. I mean, there are jobs ... Data science is a degree where people become data scientists. So, it can be challenging for a person who isn't a data scientist to get through the noise, because oftentimes you get way more data than you need.

    Kelly (08:58):
    Oh yeah, and that's half the problem.

    Rhian (09:01):
    Yeah. And you need to get rid of that outlying data that doesn't actually matter and really focus on the things that you can measure, action on, and then that will have a meaningful impact. So, let's talk about Kelly's favorite thing. I don't know if it's actually your favorite thing. We've just-

    Kelly (09:22):
    I don't know what my favorite thing is anymore. Honestly, everyone has their 2021 intentions, and here's the word.

    Rhian (09:31):
    Oh, god.

    Kelly (09:32):
    My favorite one that I saw is "here's the emoji that represents my year." I'm not doing that. I never do that.

    Rhian (09:38):
    Same.

    Kelly (09:39):
    My favorite new year's resolution is totally off topic. My favorite new year's resolution that I ever set was 2019, and that was to eat Mexican food at least once a week every week for the entire year. And I succeeded. Man, when you give me a goal that's that good, I am not going to miss out. I went to Portugal, I went to New Zealand, and I still found a way to hit my goal.

    Rhian (10:06):
    That's so bonkers. I love it so much. My daughter has a 17-point ... I shared it with Kelly earlier. A 17-point intentions/goals, and they are separated out, for 2021. She is very motivated. My goal this year is I don't really have one besides I want to be ... So, oh my gosh, what's her name? Rumor? Is it Rebel Wilson?

    Kelly (10:33):
    Yeah.

    Rhian (10:33):
    She's the Australian actress.

    Kelly (10:35):
    Yeah.

    Rhian (10:35):
    She did a year of health last year, and I liked that the framing of that. Instead of me being like, "I'm going to do X or Y," she's like, "I'm going to do things that make me healthier." So, I guess that's kind of my ethos of the year.

    Kelly (10:49):
    I feel like that's such an important thing, because ... I'm going to put my social worker hat on for a second here. There are multiple ways that you can set your goals and intentions, and some people respond to SMART goals. They're specific. I'm not going to go through all of them. They're measurable. They're attainable. Oh my gosh. I'm about to all of them, aren't I?

    Rhian (11:09):
    You're about to go through-

    Kelly (11:10):
    I'm stopping now. I am stopping now.

    Rhian (11:13):
    They're also timely. Don't worry.

    Kelly (11:15):
    They're timely. Yep, yep. What letter am I missing?

    Rhian (11:20):
    R.

    Kelly (11:20):
    They're specific, measurable.

    Rhian (11:22):
    Actionable.

    Kelly (11:24):
    Yeah, attainable, actionable.

    Rhian (11:25):
    Oh, attainable! Oh, is it attainable?

    Kelly (11:26):
    Yeah. Yeah. Well, again, everyone has a different way of doing it. Anyway. Your goals can either be very, very specific and be like, "I need to ..." I hate doing weight example ones, but that just keeps coming to my mind, because people always set a weight loss goal, like, "I want to lose 10 pounds by June 30th. And here is how I'm going to do that." And then other people prefer to keep it a little bit more broad and not be so limited to like, "I want to do X, Y, and Z, and if I don't do it, I fail." So, I like that there are two different approaches to it and everyone has their own different ... Whatever works best for you, however you respond best to goals, that's how you've got to do them.

    Rhian (12:11):
    Yeah. I'm excited.

    Kelly (12:13):
    I'm a specifics person when it comes to goal-setting, but, I mean, like I said, eat Mexican food once a week every week for a year.

    Rhian (12:21):
    That is specific.

    Kelly (12:23):
    Yeah. I just want to eat Mexican food at least a few times-

    Rhian (12:24):
    What's your favorite dish?

    Kelly (12:25):
    It depends where I am.

    Rhian (12:29):
    Well, first of all, the answer should be street tacos, but, okay, keep going. Whatever.

    Kelly (12:35):
    It really does depend where I am though. There's one place that does really good mole chicken that it's like your grandmother's, your abuela's Mexican, like her house basically. It's amazing. It's really good. And then my favorite cheap Mexican food that is by no means high quality whatsoever is peppers filled with stuff.

    Rhian (13:03):
    Okay. Nice.

    Kelly (13:04):
    And I also love ... Oh, man, I mix Mexican food. I have not had Mexican food in a very long time. That's the one thing I haven't ordered from Postmates or anything like that, just because it's so many different kind of packages with it.

    Rhian (13:17):
    Oh, because you're in Atlanta and so the Mexican food isn't as good as in Southern California?

    Kelly (13:23):
    Oh, we have really good Mexican food. Don't get me started.

    Rhian (13:25):
    South Californians, they will put a ... That's a line in the sand. You're like, "No, your Mexican food is not as good as our Mexican food."

    Kelly (13:32):
    I completely agree there. Our barbecue is going to be better than yours.

    Rhian (13:35):
    Yeah, 100%, 100%, 100%.

    Kelly (13:38):
    So, back to what we're tracking. That was a long-

    Rhian (13:41):
    Conversion rate.

    Kelly (13:42):
    My bad. Yeah.

    Rhian (13:43):
    How do I-

    Kelly (13:43):
    So, we're going to start with conversion rate. This is a really popular one to track. Everyone usually knows where to find your conversion rate on the Shopify dashboard and Google Analytics. One thing that I always like to stress is do you know your conversion rate based on device. Do you know what your desktop conversion rate is versus your mobile conversion rate? Because we spend so much time using our desktops or our laptops to run our business, to see our store, to test things out, that we forget that most of our customers are actually shopping on a mobile device. And your mobile conversion rate is generally lower than your desktop conversion rate, but that does not mean that you can't improve both of them. Also on the same note of conversion rates, as soon as I'll remember what I was about to say ... Oh! I remember what I was going to say.

    Rhian (14:31):
    Yay!

    Kelly (14:31):
    Baselines. When it comes to what makes a good conversion rate, stop comparing your shop to other stores. I know that's tough to say. I cannot tell you 2% is a good conversion rate, because I don't know your average order value, which we're about to get to next. I don't know your general price point for your products, where your customers are coming from. If you have a content-heavy website where you're getting a lot more traffic that is there for the content as opposed to actually purchasing an item. And it also depends on your vertical and how complex your products are. So, just focus on improving your own conversion rate is all I'm going to say.

    Rhian (15:10):
    Yes. I have nothing to add here.

    Kelly (15:12):
    That's okay. That's totally fine.

    Rhian (15:14):
    Well, how's this? How's this? If you are not focusing on your conversion rate, you are leaving dollars on the table, period.

    Kelly (15:20):
    Boom! Good one.

    Rhian (15:22):
    That's it.

    Kelly (15:23):
    Okay. On to the next one. I already said it. Average order value, AOV. Your average order value is the average cost of an order. Imagine that. So, that depends on your price point, and that depends on how many items people are generally purchasing in one order. So, again, there is no good AOV. There is no bad AOV. It just depends on how you are selling your products. And there are different strategies based on what your average order value is of how to actually grow your business. So, we often talk about having a "buy now, pay later" option, for example. If your AOV is like 80 and up, adding Sezzle or something like that onto your store's a great idea. But if your AOV is only like $20 per order, don't do it.

    Rhian (16:10):
    Right.

    Kelly (16:11):
    You can instead focus on cross-sells and just adding cheap ... What do they call them? The end unit at a grocery store, that you just grab things.

    Rhian (16:23):
    Oh my god. I haven't been to a grocery store in so long.

    Kelly (16:25):
    I know!

    Rhian (16:26):
    End cap? End cap?

    Kelly (16:27):
    End cap. Yes. That's it.

    Rhian (16:28):
    Is that it?

    Kelly (16:30):
    Yeah. Wow. I completely forgot how to live my life since being home from the pandemic. But my point being, focus on your average order value. You can still work on increasing that by, again, upselling or cross-selling. So, that is my answer for AOV.

    Rhian (16:48):
    Yeah. Something too with AOV, again, if you're not focusing on this, you're leaving money on the table.

    Kelly (16:56):
    I hope you just end every single one we do with that.

    Rhian (16:59):
    Yes. That's it. That's going to be all I have to contribute for this entire episode is just like-

    Kelly (17:05):
    If you're not focusing on SEO ...

    Rhian (17:08):
    We know we always get there. But seriously, this is something that so many folks just don't do. They just don't focus on AOV. Or they focus on it too big picture. They're like, "Well, let's upsell this T-shirt onto this other T-shirt." You're like, "Maybe, why don't up upsell shoelaces or something?" Right? It's like that pack of gum on your way out. I mean, both are good.

    Kelly (17:41):
    Both are good.

    Rhian (17:41):
    If you can sell another T-shirt-

    Kelly (17:42):
    But they both have their place.

    Rhian (17:43):
    Yeah. Yeah. So, do both.

    Kelly (17:46):
    Average order of value. All right. The next one. You'll either see it as LTV or CLTV, and that is the customer lifetime value. So, this is how much a customer is spending on your store over the life of their being a customer with you. A higher customer lifetime value over your average order value generally means that you have customers who are coming back to purchase again. So, these are multiple orders buying different things, or it could very well be customers who are subscribed to a product on your store. It is cheaper to have a return customer come back and buy something else than it is to acquire a new customer, which is why focusing on your lifetime value for your customers is so important.

    Kelly (18:29):
    So, something you can do with your LTV ... And Klaviyo does a good job with this as well. They've got their whole data science team. Again, data science is a thing. They have their whole data science ... Oh my gosh. Thing. I will figure out words one day. That will tell you when you can expect the customer to place their next order. And you can market to them specifically, because they're approaching the time where they're usually placing another order, and you can market to them so you can actually get them to come back to the store and place that order. So, they do a good job of helping you drive up that LTV. And if you're not focusing on LTV, you're leaving money on the table.

    Rhian (19:09):
    I didn't want to say it again! But this is an important metric to know.

    Kelly (19:15):
    It is.

    Rhian (19:16):
    You have to know this metric, whether ... I'm in the app world, and we have to know this metric.

    Kelly (19:22):
    Yeah. I feel like this is something that's probably often tracking the ... This and the next one are more tracked for SaaS products or services as opposed to ecommerce, but it's so important to track your LTV for your store.

    Rhian (19:37):
    Well, yeah, because, and, well, this is going to segue directly into customer retention rate, but if you retain your customers, they're going to have a bigger lifetime value. And there's many different ways to do that, and the store I'm going to shout out later, which I'm about to shout out now, does a really fantastic job of increasing their CLTV through SMS marketing. And normally I don't like SMS marketing all that much. Sorry, SMS marketing companies. But the way she does it, and it's ElonWick Candle Company, it's like this cute message and a gif, and I think I've talked about it before, but I just really love how it's done, because it's like, "Bring in the new year with this," and there's a gif, and it's a link to buy a candle. And I'm like, "I love this."

    Kelly (20:22):
    That's cute.

    Rhian (20:23):
    It's really cute.

    Kelly (20:24):
    I like that.

    Rhian (20:24):
    And it's actually engaging. It's not just like, "Come down and buy this thing, period. Okay, the end." [crosstalk 00:20:31]

    Kelly (20:31):
    "We have products."

    Rhian (20:33):
    "We sell stuff on the internet."

    Kelly (20:35):
    "We sell stuff. Buy our stuff." Yeah. So, again, just mentioned it, very related to LTV is your customer retention rate. And this is the percentage of customers who are coming back to your store to place a second or third order, basically a subsequent order.

    Kelly (20:54):
    So, again, retaining your customers is cheaper than acquiring new customers. There's a sweet spot I'd say for your retention rate. If your retention rate is too low, you're not doing enough to keep existing customers interested to come back. If your retention rate is too high, you're not putting enough tension on acquiring new customers. There has to be a mix of both.

    Rhian (21:18):
    Yeah. Do we have a number?

    Kelly (21:21):
    No. Again, it's going to vary by your business. If you're a subscription business, your retention rate better be higher than a business that usually sells one-off products. Sorry, I just blatantly say no, but ...

    Rhian (21:33):
    No, but it's so true. Right? If you sell, I don't know, a skincare product that's $400 that's going to last a person all year or two years, your metrics are skewed, because you have to find something that makes them want to come back.

    Kelly (21:54):
    Exactly. Exactly. I would venture to say maybe 30% is probably going to be most common. I wonder what mine is.

    Rhian (22:04):
    You heard it here first, folks. 30%.

    Kelly (22:06):
    I'm just going to go ahead and quietly check mine. So, this was last year. My retention rate last year was 10.9%, so mine is low.

    Rhian (22:20):
    According to the metric you just made up.

    Kelly (22:22):
    Yes.

    Rhian (22:25):
    That's so silly. I love it.

    Kelly (22:28):
    You know what? It could be anywhere between 1 and 100, and it's not 1, and it's not 100. So, I'm just taking a chance here.

    Rhian (22:38):
    As with most things, it depends. But if you're not paying attention to it, you're leaving money on the table.

    Kelly (22:49):
    I love it. All right. So, this next one is something that's near and dear to my heart as a developer, and that is your site speed.

    Rhian (22:56):
    Yes.

    Kelly (22:57):
    This is something that you're not often going to see as a KPI that's "Here are 900 KPIs to track for your business," those kind of blog posts, because it takes a little bit more work to track your site speed, or you're generally not looking at it. So, you can get this data from Google Analytics. I had a brain moment there.

    Rhian (23:19):
    Oh, I thought you were about to have a really spicy take, because-

    Kelly (23:21):
    Nope. No. I will have some spicy takes in talking about this, but ... Shopify did make it a little easier for you to track your site speed or your performance report-

    Rhian (23:34):
    They sure did.

    Kelly (23:35):
    ... with their site speed report that's available within the Shopify admin. Working on improving this is important. Striving for 100 is not. Please do not strive for a speed score of 100. I don't have a speed score of 100. I will never have a speed score of 100.

    Rhian (23:50):
    It will never happen.

    Kelly (23:52):
    It's just not going to happen.

    Rhian (23:53):
    No.

    Kelly (23:53):
    And if it does happen, I'm concerned that your customers are not actually able to make a purchase on your website.

    Rhian (24:00):
    Right.

    Kelly (24:01):
    So, pick and choose. Do you want money, or do you want a 100 site speed score? There's generally an answer here that I think most people would choose. But, no, I mean, I think we all hate experiencing a slow site. I am very impatient. And if your site is taking too long to load, I am going to leave and shop elsewhere, especially on a mobile device. And, again, we're often loading in images, and we've done previous podcast episodes on site speed as well, which we could probably link to in the show notes, if I remember, and it's something that's really important to be actually looking at, especially on mobile, because we're just so focused on desktop. I keep on talking about this, because I want to drill it into your brain that it is a very important thing to be thinking about all the time.

    Rhian (24:54):
    It is so important, also because Google Index is mobile-first.

    Kelly (25:00):
    Yes!

    Rhian (25:01):
    Let me repeat: Google Index is mobile-first. I don't care if you have a lightning fast desktop experience. If you do not have an equally or better, preferably better, experience on mobile, Google doesn't care how good your desktop experience is. They're like, "That's cute. What about your mobile experience?" They've been indexing mobile-first for a really, really long time now. And there's a lot of hot takes in our industry that go something like this, and this is no shade at anybody, but it goes like, "Well, Gymshark has a site speed of 13, so it doesn't really matter what yours is." And I just made up the number 13.

    Kelly (25:39):
    Are you Gymshark?

    Rhian (25:40):
    Yeah, that's the thing. It's like Nike. Well, Nike's site is slow. Cool. Nike's a billion-dollar company. I believe Gymshark is now as well.

    Kelly (25:48):
    I think they are. Yeah.

    Rhian (25:49):
    And you can't index yourself if you're a small- to medium-sized business against billion-dollar companies. It just doesn't work, because the volume organic traffic that they get automatically pushes their rankings up. It automatically does all of this stuff, versus, when you're trying to get found, your site speed needs to be there. Plus, there's also the trust factor. If you're a brand that people don't know the name of outside of the ecommerce space or the commerce space-

    Kelly (26:25):
    The DTC bubble.

    Rhian (26:27):
    The DTC bubble where we all know each other. That's a challenge if your site's only 15, 20, because no one will find you; or, if they do, when they get onto your site, they're like, "Oh, this seems not legit and like they're going to steal my information," because there's still that mistrust about entering your credit card online, even though we've transitioned so much online, and they're going to bounce out. If your store takes more than 2.7 seconds to load, people will leave. Period. The end. Thank you for coming to my TED Talk.

    Kelly (26:58):
    You know, I'm still waiting for you to say that, if you're not tracking this, you're leaving money on the table.

    Rhian (27:03):
    Oh yeah. Well, if your site is slow, you are leaving money on the table-

    Kelly (27:08):
    Look at you.

    Rhian (27:08):
    ... unless you're a legacy or an enterprise brand, but those are, again, outliers. If we're looking at a dataset, you have to exclude the outliers in a specific instance.

    Kelly (27:19):
    Yes. Always. No, honestly.

    Rhian (27:21):
    Well, really, all-

    Kelly (27:21):
    You should always be excluding the outliers, because they skew your data.

    Rhian (27:26):
    Yeah. That's why you use median, not mean.

    Kelly (27:30):
    Why don't you use the mode?

    Rhian (27:32):
    You could also use the mode for frequency. I just took a stats class, everybody. Again. It's like my third grad stats class.

    Kelly (27:40):
    That's cute.

    Rhian (27:40):
    Isn't it?

    Kelly (27:40):
    Well, hey, do you want to talk about this next one, or should I take it? I'm just kidding. You're talking about this one.

    Rhian (27:47):
    So, the next thing we're talking about is site ranking. Woo! Are you tracking your site ranking? And then you're like, "Rhian, well, how do I do it without a Moz subscription or something similar?" And the answer is through Search Console/Google Analytics, most specifically when they are combined. You have to use both together. Oftentimes people are like, "Rhian, can you help me with my Google Analytics," and then I'll check it out, and I swear it's like 90% of the time. I'm like, "Why isn't your Google Analytics linked to your Search Console?" It's literally inside of Analytics. You click something, and it's like, "This is not connected." And it's the place that I go first to find out your search rankings. So, if I click there and it's not linked to Search Console, you're receiving a fraction of the data and are operating at a fraction of the percentage of knowledge that you need to know to see if your site is ranking. So, track your site ranking.

    Rhian (28:43):
    If you can splurge on something like Moz, splurge on something like Moz, because they do a ... I don't want to say it's a dressed down version. It's an easier to understand version of data. Distilled, dare I say? I don't know. It's just easier to understand if you're not looking at ... If you don't look at Google Analytics and say, "Wow, this is so much fun ..." Because I do, but that's not normal. Moz or something like that is a really great fix, but it is an expensive fix. So, that's the challenge there. So, the less expensive mechanism by which to do this is linking Google Analytics, Google Search Console, make sure they're holding hands, and track your site rankings. Are you going up? Are you going to down?

    Kelly (29:30):
    What changed their mind?

    Rhian (29:31):
    And if you don't know, you're leaving money on the table.

    Kelly (29:38):
    I linked to a Google support document on how to ... Document. It's a website. It's a webpage. On how to connect Google Search Console to Google Analytics. So, ask your webmaster to connect them.

    Rhian (29:54):
    Oh, god. Who has webmasters?

    Kelly (29:56):
    Oh, I just wanted to say webmaster. I used to be a webmaster.

    Rhian (30:00):
    It is 2021. Do you really still have a webmaster?

    Kelly (30:04):
    Actually, the URL for the search or what I just linked to is [crosstalk 00:30:11]

    Rhian (30:10):
    Oh, it is Webmasters.

    Kelly (30:11):
    It's Webmasters. Yeah.

    Rhian (30:13):
    Yep. They've renamed it, but it's Webmasters still.

    Kelly (30:14):
    Yeah, it was Webmaster Tools. That's right.

    Rhian (30:16):
    Yeah.

    Kelly (30:18):
    I still think that's a great one. All right.

    Rhian (30:20):
    Google does whatever it wants.

    Kelly (30:21):
    Google can do whatever Google wants, because, like Gymshark, there are no rules. Anyway. Do you want to talk about click-through rate?

    Rhian (30:32):
    I do want to talk about click-through rate. And this click-through rate is specifically on the SERP, a SERP, S-E-R-P, a search engine result page. So, that means when you Google something, which is formally called the query, when you make a query to Google and it gives you back the answers, that's a SERP. Okay? Now, what you see are those blue links. Right? We all know what I'm talking about. They're the blue links. They've got an underline. Those are called page titles or title tags. Underneath that is meta description. But this isn't an SEO talk. So, that just real quick.

    Kelly (31:04):
    Oh, speaking of, we're doing a webinar on SEO-

    Rhian (31:08):
    Yes, we are.

    Kelly (31:09):
    ... this upcoming Thursday. I will link it in the show notes.

    Rhian (31:11):
    We are, and it should be a great one. So, the blue link is what you can click on, and you can measure how many times people click once you are found in the SERP. That's important. There's also a click-through rate for ads, but we're not talking about ads, because that costs money. SEO does cost money, and it's an opportunity cost, but if people aren't clicking on your page title ... So, let's say you're getting [inaudible 00:31:39] You're on the front page of Google. Awesome, awesome, awesome. No one's clicking you. You're like, "Why?" You have to solve for the why. And if you don't, you're leaving money on the table. The end. Kelly, next, your turn.

    Kelly (31:51):
    Oh, that was so good.

    Rhian (31:51):
    You're talking about CACs.

    Kelly (31:51):
    CAC. Okay. So, this is what we were laughing about earlier. CAC is a customer acquisition cost, and every time I say CAC in a sentence I just giggle a little bit, because it sounds really dumb. And I am going to preface this by saying I am not a marketer. I don't know the first thing about marketing on Facebook and, well, any kind of social media. However, your customer acquisition cost, I do know, is the amount you spend on acquiring new customers divided by the number of newly acquired customers. So, you get a nice little number there.

    Kelly (32:31):
    Usually a high CAC means ... A high customer acquisition cost means you're spending too much money to bring in new customers. What's actually tolerable, what's good, again, it's going to depend on your store, it's going to depend on your product's price point, AOV, the cost of ad spend and how that changes over time. But, again, remember customer acquisition cost is not just ads. It kind of runs across the board. I believe I would consider offering a discount code to be included for a first-time customer. It adds to the customer acquisition cost, because you're giving them a discount on their order. So, the point here is keep track of it, and especially-

    Rhian (33:17):
    The lower the better.

    Kelly (33:18):
    Yeah, the lower the better, because obviously, if your customer acquisition cost is low, you're able to acquire more customers at ... Well, you could increase your ad spend or however you're marketing to them and acquire more customers without going bankrupt, which is kind of an important thing.

    Rhian (33:36):
    Yeah. And also finessing your ad copy as well. Right? If you have a high CAC, then you should really look at all of your ad copy and all of your ads in general and say, "What is it about this that is making either the wrong people come?" which is a big challenge, right? Or, "Are the ads we're buying that are maybe good ads going to a page that does not convert once you get there?" I have clicked on so many ads on the internet that have taken me to a different page than what I was expecting to go to.

    Kelly (34:17):
    Yes!

    Rhian (34:18):
    And then I'm like, "Well, but I wanted to buy that one dress that I just clicked on," and they're like, "Oh, that dress is old out. Here's this." I'm like, "Well, why are you still showing ads for the dress that's sold out? That's dumb."

    Kelly (34:26):
    I have been clicking on the same ad for a company here in Atlanta that sells a large blanket that says Atlanta. And, Shannon, if you're listening to this, ignore it, because I wanted to buy one for you. It is not available on the store. And that's what they're marketing. It just takes you to a page that has all of the Atlanta branded merch that they sell, but the blanket isn't there, and I really want the blanket.

    Rhian (34:50):
    So, what's the churn off of that? That's got to be constantly churning, because I'd be pissed.

    Kelly (34:54):
    And it turns out ... I clicked into the comments. It was a Facebook ad. And people were like, "When's the blanket going to be back in stock? Why isn't the blanket available?" So, clearly they want it, so update your images.

    Kelly (35:06):
    So, a couple of things that I also wanted to point out when it comes to customer acquisition cost. I know SEO also falls under it, especially if you're doing paid search. Any kind of audience-building. So, using influencers, that's a cost for acquiring customers. Offering some kind of referral or a loyalty program, again, another thing that changes your customer acquisition cost. So, definitely something to pay more attention to if you're not currently doing so already.

    Rhian (35:36):
    Yeah.

    Kelly (35:38):
    So, that was a number of-

    Rhian (35:43):
    Things.

    Kelly (35:43):
    Well, we went through some KPIs.

    Rhian (35:43):
    KPIs.

    Kelly (35:44):
    And I mean, to be clear, there are many more that you could be tracking here. Examples: conversion rate by channel, channel acquisition cost, overall customer satisfaction. Everyone loves getting that, what is it, net promoter score, that "On a scale from 1 to 10, how much are you likely to recommend us to a friend?" Your bounce rate, time spent on the site, your email campaign performance, just how fast is your list growing, your percentage of sales from email. I mean, there are so many additional things you could be tracking here that I absolutely recommend you track just based on however you're running your business. I'm not tracking much on social media for my store, because I'm not doing anything on social media for my store, and that's why I also know nothing about return on ad spend. I'll let other people do that one. ROAS.

    Rhian (36:33):
    That's called ROAS.

    Kelly (36:36):
    In other words, if I'm not tracking this data, I'm leaving money on the table, because I am.

    Rhian (36:42):
    Facts. Facts.

    Kelly (36:43):
    But that's okay. That's okay. At least I know my CAC. No, I don't.

    Rhian (36:48):
    So stupid.

    Kelly (36:54):
    All right. Do you want to move on to store shout-outs?

    Rhian (36:56):
    Store shout-outs! The first one, so, 2021, Kelly, what store are you shorting out? Shorting ...

    Kelly (37:04):
    We're going with it. I am shorting out Copper Cow Coffee. So, I received this as a gift from Recharge actually. It's Vietnamese pour-over coffee, and I'm sure they have more than that, but they're these packets that are super cool. It opens up and sits perfectly on the mug, and you just add some hot water to it. And then you add condensed milk, and it's delicious. And their site is super cute. I highly recommend trying it. I want to try some of those other ones. I have a churro one, a churro latte, and they have additional other best-sellers that I want to try as well, so lavender and there's cream.

    Rhian (37:47):
    Ooh. Fancy.

    Kelly (37:49):
    It's also woman-owned and sustainably sourced.

    Rhian (37:51):
    Even better. Even better.

    Kelly (37:54):
    Yeah. What is your store?

    Rhian (37:55):
    My store is ElonWick Candle Company. I believe she's actually based out of Atlanta, by the way, or Georgia. I don't know if she's based out of Atlanta or Georgia. I'm also just guessing that, because there's this really great smell or aroma ... Oh, I thought it was called Atlanta peach. It's called Georgia peach, and it smells good, and it's not overpowering, which I really, really like. It's not like in-your-face peach. It's just this subtle, kind of sweetness that it brings. And I have a bunch of her candles, and I am a really big fan. And reading more on her site, I believe she's from Savannah.

    Kelly (38:36):
    Okay.

    Rhian (38:37):
    But anyways, I just love her products. There's a big candle community, and I love what she contributes to the community. And, yeah, the end. I love it. Pick one up.

    Kelly (38:50):
    I love candles.

    Rhian (38:51):
    I love candles! I like things to smell nice-

    Kelly (38:54):
    Same.

    Rhian (38:54):
    ... and be nice. And you know what I really like, is candles that aren't overwhelming.

    Kelly (39:04):
    Yes.

    Rhian (39:05):
    Where you're not like, "Oh."

    Kelly (39:07):
    I agree.

    Rhian (39:08):
    So, check it out. I think that she's rad, and I think her company is awesome.

    Kelly (39:14):
    Cool. All right. We made it through the first episode of 2021.

    Rhian (39:19):
    Woo!

    Kelly (39:21):
    Hooray! So, thanks so much for tuning in, and thanks again to our sponsors for supporting this episode. We have a YouTube channel, and I promise we're going to get back to doing some friendly Shopify store tear-downs on there. I just need to wash my hair first. You can visit our YouTube channel at youtube.com/commercetea. If you like our podcast, please leave us a review on Apple Podcasts. Reviews make us really happy, and it would be ... You know what? That should be your new year's resolution is to leave us a review.

    Rhian (39:47):
    Please.

    Kelly (39:47):
    You can achieve it already and just call it a day for the rest of the year. That is a beautiful, beautiful idea. You can subscribe to Commerce Tea on your favorite podcasting service. We post new episodes every Tuesday. So, grab your mug and join us then. We'll see you next week.

    Rhian (40:01):
    Goodbye.

    Rhian (40:05):
    ClockedIn is the time clock for Shopify. With ClockedIn, your team members can easily clock in and out of their shifts from anywhere. You can manage your team's hours as they work remotely with an intuitive interface that can be used from desktop, tablet, or mobile. Check it out at clockedin.io or in the Shopify app store.

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