Tracking your online marketplace is important because it helps you to know your customers better. The popular e-commerce sites have metrics to analyze and modify their offerings. In this article at Ruby Garage, Anastasia Z. discusses 6 metrics to track your online marketplace without fail.
Measuring Online Marketplace Trends
The online marketplace is rapidly evolving, and businesses should use metrics to track the changing customer demands. The metrics can be subdivided into four categories:
Usage Metrics: These metrics display the number of visitors on your website and the time they stay engaged with the content. For example, monthly active users (MAU), bounce rate, time spent on site.
User Satisfaction Metrics: They analyze your customer service, customer relationship, and churn rate. For example, net promoter score (NPS), conversion rate, customer churn rate.
Transaction Metrics: These help you track the number of transactions, liquidity, provider-to-customer ratio, and repeat purchase ratio. For example, liquidity, seller-to-customer ratio, repeat purchase ratio.
Business Metrics: Track revenue and profits you earned and the number of customers you acquired through these metrics. For example, gross merchandise volume (GMV), customer acquisition cost (CAC), customer lifetime value (CLV).
Below are the most important metrics to track online marketplace trends:
Percentage of Active Sellers or Buyers: They count the number of users that bought or sold items within the last 30 days. Use the following formula to calculate:
Percentage of Active Sellers = No. of Active Sellers / Total Sellers
Percentage of Active Buyers = No. of Active Buyers / Total Buyers
Customer Acquisition Cost (CAC): This shows the cost you incur to the company to get a new customer on board. The result of this online marketplace metric should ideally be zero. If the number is quite high, your business is at risk. Calculate CAC with the formula below:
CAC = Total Cost of Acquiring New Customers / Number of New Customers Acquired
Average Order Value (AOV): This calculates the user spend for every order placed. Using the formula below, calculate the metric to get results on a daily, weekly, or monthly basis:
AOV = Gross Merchandise Value / Number of Transactions
Gross Merchandise Value (GMV): This online marketplace metric reveals the number of items you sold on the site. This displays the trajectory of your e-commerce growth. Calculate GMV with the formula below:
GMV = Number of Transactions x Average Order Value (AOV)
Take Rate: Get a no-frill picture of your revenue status. Find out the commissions, fees, and other profits you have gained. If the result is high, your offerings are valuable to the users. Use the following formula to calculate the metric:
Take Rate = (Commission + Fees) / Sales
Liquidity: This reveals if your buying and selling assets are ‘transactional’. Seller liquidity explains the percentage of listings that result in transactions within a given time frame. Below is the formula to calculate this metric:
Seller Liquidity = No. of Listings with Transactions / No. of Total Listings
To view the original article in full, click on the following link: https://rubygarage.org/blog/key-marketplace-metrics