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Measuring Success: eCommerce and Live Shopping Metrics You Need to Track

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Estefania Millan
Measuring Success: eCommerce and Live Shopping Metrics You Need to Track

If you're just starting with live shopping, you might think that the number of viewers is the only important number to track. Let's be real - whether you have 10,000 viewers or 10 viewers to your live stream event - it's a big deal! Imagine if you had a retail store, and 10 people walked in at once. That's the power of live shopping; humanizing your online business to tens, hundreds, or thousands of shoppers.

Beyond viewership, it's important to consider all the other relevant metrics that are important to track to understand the success of your live shopping events and the impacts these events have on your ecommerce business.

In this post, we'll be talking about Key Performance Indicators (KPIs) that are most important to live shopping applications in your online store - metrics related to viewership, engagement, conversion and more.

  • Increase ecommerce conversion rates with live shopping, from 2% to 16%
  • Track your success by focusing on the right metrics for your live shopping event
  • Learn how to measure the success of your event both qualitatively and quantitatively

Why Conversion Rates Are Relevant as a Shopify Merchant

Measuring conversion rates on Shopify is the ultimate way to track your ecommerce store’s effort and success. Conversion rates allow you to track performance, areas of improvement, and your return on investment (ROI). The higher the rate is, the higher the value you will be receiving. So how do you calculate conversion rates?

Conversion rate is the percentage of desired actions completed by your desired users.

In an online store, this could be the number of online store visitors who completed a purchase. Therefore, the conversion rate would be the number of completed purchases (desired action) divided by the total number of online store visitors (desired users). For example, if 200 people visited your online store and 3 of them completed purchases, then your conversion rate would be 3 / 200 x 100% = 1.5%.

By observing conversion rates, you can better understand how individuals interact with your online store, pass through your sales funnel, and ultimately, your cost of customer acquisition. 

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Who doesn't love data? Graphs, Charts, Tables, and Maps - via Pexels

Live Shopping's Effect on Conversion Rates

Unfortunately, having a high conversion rate isn't as straightforward as it sounds. On average, Shopify merchants have a conversion rate on mobile is 0.9%, and 1.4% on desktop. As an ecommerce retailer, it can be hard to pinpoint what areas you're lacking in and what you can do to improve. From personal experience, one of the best ways to increase your conversion rate is engaging with your customers and making the shopping experience as enjoyable as possible. Live shopping is a great solution for retailers searching for simple ways to do just that. 

Live shopping brings back the personalized experience of shopping into your ecommerce retail store. Host livestream events which allow you to share products with your customers, answer questions, and feature key items you'd like to promote. Not only will this increase traffic to your store, it will create awareness and create a sense of excitement and exclusivity for the products showcased during your event. 

Still not convinced this could help your store? Based on a number of live shopping solutions currently in the market, live shopping can increase conversion rates to over 16% during a live shopping event, that's more than a 10x increase from the average conversion rate.

KPIs Measured In Live Shopping Apps

Key performance indicators or KPIs are another great way to track your ecommerce store’s success, particularly when hosting live shopping events. 

Here at Shop Studio Live, we want our merchants to have access to useful data and be able to track their live shopping success. Our application measured a variety of metrics across viewership, engagement, conversion and more! Here is a list of the metrics we value most and their importance to you as a merchant.

Live Shopping Event Preview - Shop Studio Live

Feature Name and Description Why It's Relevant for You
Current Viewers: The number of current viewers watching a live stream event. Whether it's only a few or a thousand viewers, don't be discouraged! You are connecting with individuals around the world and enhancing their shopping experience while increasing traffic and store visits.
Product Page Clicks: The total number of clicks on Featured Products in the duration of a live stream event. Our favourite feature. Track how your event contributes to the traffic directing customers to your featured products. Measuring product clicks will also help you determine which one of your Featured Products is most popular! Use this data for future events.
Unique Chat Users: The number of individuals who typed in a username to access chat features during a live stream event. Keep track of how many unique individuals accessed the chat feature. This will help you determine the overall number of users who are interacting with you during your live shopping event.
Number of Chat Messages:: The number of chat messages sent by Chat Users in the duration of a live stream event. Track the overall number of messages sent to the chat. Measure how people were engaged via chat and whether people were commenting and asking questions! This will help you shape the content of future live shopping events.
Adds to Cart: An estimated number of units of Featured Products being added to cart in the duration of a live stream event. Almost there! Track how many people added the featured products to cart. Notice that people are adding to cart but aren't purchasing? Time to consider if there might be issues in your checkout process.
Orders Complete: An estimated number of orders that include a Featured Product being part of a completed order (checkout completed) in the duration of a live stream event. Calculate how many features products were included in the completed orders. Use this data to estimate of conversion rate of featured products!
Revenue Generated: An estimated of revenue generated from Featured Product being sold (checkout completed) in the duration of a live stream event. $$$ Last but not least, track revenue generated by featured product sales. Congrats, your event was a rounding success!

Why you should care about KPIs

You might think - "Well, if I'm engaging with customers, why should I worry about all of these KPIs?" Opportunity cost! As a merchant, you always want to maximize your sales and profit - and understanding your KPIs is critical for your success in ecommerce and live shopping.

For example, if your viewership and engagement (viewers, chat messages, chat users) are high but Adds to Cart are low, then your shoppers might consider your prices too high. While they're happy watching, they have no interest in buying.

Another example, if Adds to Cart are high but Orders Complete/Revenue Generated is low, then your shoppers might have concerns about shipping rates or delivery time, or have issues with the checkout process.

Having these KPIs allows you to better understand your customers as a whole and consider ways you can optimize your engagement and sales in your online store.

What metric is the most important for your business?

Getting your money's worth

Here at Shop Studio Live, instead of charging a commission on viewers or product clicks, we have a straightforward monthly subscription. This way, you strive high without having to spend an extra penny. Host as many events as you want on your store, no restrictions or added fees. 

Takeaways

If you’ve been struggling with conversion rates or want to push your business to the next level, incorporating live shopping into your marketing and sales strategy could be a great next step. Using Shop Studio Live, you can increase your conversion rate and engage with your customers like never before!

And if you’re interested in learning more about live shopping - sign up for our 14-day free trial to start live streaming.


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