Once you start tracking KPIs for your collections, it’s essential to evaluate performance over time. By monitoring metrics like collection views, click-through rate, basket rate, purchase rate, and revenue per mille, you can gain valuable insights into how well your merchandising strategies are performing and track the impact of RetentionX auto-sorting on your products.
Where to Find the Data
As soon as Merchandize Optimization is configured for your account, we start collecting on-site collection data. This data is then used to calculate all the metrics needed to understand the performance of your Shopify collections.
To monitor the development of your collection's KPIs, head to the respective collection. You’ll find the latest stats, giving you a snapshot of how the collection is currently performing.
To track how these KPIs have developed over time, simply click on the expand icon in the widget and toggle between the KPIs.
Once you enable auto-sorting for a collection, the data collection phase and optimization start date will be highlighted in the chart, allowing you to easily compare performance before and after activating auto-sorting.
- The data collection phase represents a 7-day period used to gather sufficient data to measure the performance of your products within collections. This phase is crucial not only for determining the performance score of each product but also for understanding the impact of RetentionX's dynamic product sorting.
- The optimization start date marks the first day on that RetentionX's auto-sorting is effective. By comparing the KPIs during the data collection phase with the performance afterwards, it's easy to see how effective the sorting is.
How it Works
We analyze each product assigned to a collection to provide a comprehensive view of overall performance at the collection level. You can monitor the daily development of the following metrics for the collection under consideration:
Let's explore how each metric is calculated!
Views
Views represent the number of times a collection page is visited. This metric gives you an idea of the collection's visibility and the volume of traffic it attracts.
Views = Number of views the collection received
Let's take a look at the All Black as an example: On August 1, the collection page was viewed 2,212 times.
Click-Through Rate
Click-Through Rate (CTR) is the percentage of product clicks out of all collection views. A high CTR indicates that the collection content is engaging and effectively encouraging visitors to explore products further.
Click-Through Rate (CTR) = Product clicks / collection views x 100
Looking at the All Black collection again, we calculate the CTR by summing up all product clicks on August 1st and dividing by the number of collection views:
= (177 + 137 + 94 + 49 + 65 + 50 + 8 + 5) / 2,212 x 100
= 585 / 2,212 x 100
= 26.45%
Basket Rate
The basket rate measures the percentage of collection products being added to a shopping cart after they were viewed. It’s a crucial indicator of how well the collection content encourages purchasing intent. A high basket rate suggests that the products are appealing and well-presented, with clear and persuasive information.
Basket Rate = Products added to cart / product views x 100
For the All Black collection, we calculate the basket rate by adding the number of times All Black products were added to a basket on August 1 and dividing by the total number of product views:
= (41 + 52 + 13 + 12 + 11 + 9 + 3 + 0) / 585 x 100
= 141 / 585 x 100
= 24.10%
Purchase Rate
The purchase rate is the percentage of baskets that resulted in a purchase. It's the ultimate measure of the page's effectiveness in driving sales. A high purchase rate shows that the collection page is successful in showcasing products that lead to sales.
Purchase Rate = Product purchases / product added to cart x 100
Back to the All Black collection, we calculate the purchase rate by adding the number of times products of the collection were purchased on August 1 and dividing by the number of times they were added to a shopping cart:
= (21 + 27 + 7 + 5 + 3 + 4 + 2 + 0) / 141 x 100
= 69 / 141 x 100
= 48.94%
Revenue per Mille
Revenue per Mille (RPM) measures the revenue generated per thousand page views. It’s calculated by dividing the total revenue by the number of views and then multiplying by 1,000. RPM provides a clear picture of how effectively the page is monetizing traffic. It helps in understanding the overall revenue potential of the page relative to its traffic.
Revenue per Mille = Gross revenue generated per 1,000 collection views
Looking again at the All Black collection, we calculate revenue per mille by breaking down the gross revenue generated by all products in the collection on August 1 to 1,000 collection views:
= $19,941 / 2,212 x 1,000
= $9.01 x 1,000
= $9,014
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