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The Ultimate Guide to Granular Data: Metrics to Use for eCommerce Success

Category: UX & DESIGN
June 21st 2021
4:41:07 pm

Possessing a solid grasp of eCommerce business metrics is vital for retailers to be effective in.

While this statement will always be true, it wields a particular amount of weight in the current eCommerce paradigm, which has seen massive shifts in the economy and consumer behaviors.

What this all amounts to is massive growth for the eCommerce industry. In fact, as:

“Consumers spent $861.12 billion online with U.S. merchants in 2020, up an incredible 44.0 percent year over year… That’s the highest annual U.S. eCommerce growth in at least two decades. It’s also nearly triple the 15.1% jump in 2019.”

In order for sellers to not only weather these extraordinary changes but capitalize upon them, it is necessary for retailers to understand how to use granular data for eCommerce growth.

Knowing what granular data is, how to use it, and combine such insights with various eCommerce metrics tips and tricks, merchants can build a solid, strategic plan to capture more market share for their brand.

While there are certainly endless amounts of data sellers can track, some are more important than others.

That said, to help retailers understand how to use granular data for eCommerce growth, today, we will explore precisely what granular data is and which metrics merchants should closely monitor.

Let’s get to work.

What Is Granular Data?

Data granularity is the level of detail that is studied and represented in an analysis report. The higher the granularity, the smaller the level of detail is examined.

Understanding this concept, granular data is data that is in as small of pieces as possible to help reporting to be more detailed and defined.

The advantage of employing granular data is that it can be shaped according to the analyst’s needs, as it can be aggregated and disaggregated to understand different situations and scenarios.

If retailers fail to granulate data, it can be quite challenging for an analyst to mine and examine data effectively, as the chunks are too large.

Additionally, granular data can be easily merged with information from external sources and can be managed and integrated more effectively.

In the end, increasing data granularity can help retailers to examine their brand’s performance and establish specific, targeted adjustments to their to enhance sales and profitability.

That said, there are various types of granular data that retailers will want to monitor and analyze closely.

Types of Granular Data for eCommerce

Again, when increasing data granularity, it is essential that retailers don’t get bogged down into infinite minutia. Instead, it is vital to outline important types of granular data for eCommerce success, such as:

Segmented Conversion Rates

A brand’s conversion rate is a pretty straightforward metric as it is merely the percentage of website visitors who go on to make a purchase (or other action that sellers are measuring).

Conversion rates are calculated by taking the total number of store visitors who make a purchase and dividing that figure by the total number of website visitors.

Generally speaking, conversion rates can be a good indicator of a company’s success. However, if retailers want to truly understand how to, then it is wise to break conversion rates down and segment them more granularly.

By using granular data for eCommerce insights, merchants can gain a far more profound understanding of the performance of individual campaigns and how to grow the brand successfully.

A few ways that merchants can segment their conversion data are:

  • Conversions by Traffic Source: By reviewing which traffic sources (Google, Facebook, Instagram, etc.) convert the most, retailers will better understand where to invest their marketing dollars.
  • Conversions by Device Type: According to, nearly 54 percent of eCommerce sales are expected to take place via mobile. Therefore, it is critical that merchants understand which devices consumers are using to complete sales on their website so as to optimize experiences for that type of platform.
  • Conversions of New vs. Returning Visitors: It is important to remember that returning visitors are likely to showcase higher conversion rates as they already trust the brand. That said, by segmenting conversions in this way, retailers can get a better understanding of each group’s average conversion rate, thereby informing sellers how much they should budget for acquisition and.
  • Conversions by Product: If retailers house a wide array of products on their website, it is wise to segment conversions in this way. Fortunately, has this information readily available. By establishing product conversions against the amount of traffic a page receives, retailers can pinpoint popular product trends, as well as which items are underperforming.

Segmented Revenue

When it comes to eCommerce metrics tips, sellers must understand the importance of segmenting revenue the same way(s) that conversions are segmented.

The reason for this is that, like conversions, merchants can use this type of granular data for eCommerce insights into which channels are driving website traffic but are not contributing to the brand’s bottom line.

This is an excellent strategy for establishing how are contributing to the company’s revenue. Some of the channels that retailers will want to segment revenue by include:

  • Organic search
  • Email marketing campaigns
  • Referral traffic from social media or blogs

Much like segmenting by conversions, segmenting by revenue allows retailers to get an inside look at how customer spend changes with different traffic sources and channels.

For instance, retailers might. However, these folks might only purchase a single product. Compare that to the seller’s email campaigns which boast a lower overall conversion rate but double the average order values and it becomes clearer which channel is more valuable to the brand.

Funnel Abandonment

Cart abandonment is something that most retailers are already tracking. In fact, many eCommerce platforms are designed to help sellers keep up on abandoned carts with autoresponders that dish out.

Moreover, many companies utilize pixels to establish ad retargeting for consumers who visited their store but failed to complete a purchase.

However, it is essential that sellers don’t just look at the bottom of the funnel. Instead, merchants must examine the entirety of their sales funnel to determine where consumers are dropping out during the shopping experience.

This can be achieved by manually analyzing the visitor flow of an eCommerce website or by to see exactly where consumers are bailing out on the process.

As far as eCommerce metrics tips are concerned, tracking overall funnel abandonment is one that is woefully overlooked by many retailers. The reality is that by monitoring this information, merchants can identify key points in the buyer’s journey where consumers are falling out of the funnel, thereby providing retailers with the opportunity to optimize their site and marketing efforts to patch up these holes.

Percentage of Returning Customers

Returning visitors is a great metric for merchants to track for measuring customer loyalty. However, it is also helpful to know how returning customers translate to eCommerce revenue.

It is for this reason that retailers should track their percentage of returning customers.

Fortunately, there are a variety of eCommerce platforms that provide users with customer reports which detail the number of returning customers. For instance, Shopify supplies retailers with detailed reports on first-time versus returning customers, which is one of the many.

However, if merchants are utilizing a platform that does not provide such reporting information, it is possible to instead export the site’s total orders and scrub the data for duplicate customer data to get an idea for repeat buyers.

Percentage of returning customers is vital for sellers to watch as this figure informs retailers on where they stand with customers on important issues such as:

  • Customer service
  • Pricing
  • Trust
  • Customer sentiment
  • User experience
  • Overall satisfaction

Additionally, another reason this metric is essential to track is that returning customers are highly valuable as they tend to spend more than first-time buyers, and merchants do not need to pay acquisition costs to get them to make a subsequent purchase.

If retailers see a decline in their return customer rates, then it becomes clear that sellers should try to figure out where their experience is lacking and establish ways to keep customers coming back for more, such as with.

That said, monitoring this metric is not exclusively about revenue. Wise merchants understand that the best marketers their business can have are happy, satisfied customers. These are the folks who will leave product reviews and advocate for the company on social media.

Revenue aside, this should be reason enough for sellers to track the percentage of returning customers.

Average Order Values

A brand’s average order value is the sum of the value of all of its orders for a given period, divided by the total number of orders placed in that timeframe.

For instance, if merchants were tracking orders for the month of July and found that total revenue was $50,000 with 775 orders placed, this means that the monthly average order value for July would be roughly $64.51.

Understanding average order value is a necessity to establishing the lifetime value of customers and formulating marketing strategies that can help the brand grow.

In essence, there are only three ways for an eCommerce business to grow:

  • Acquiring more customers
  • Getting customers to make purchases more often
  • Increasing average order values

Fortunately, increasing average order values costs almost nothing for merchants to achieve. Some strategies that retailers can deploy for attaining this aim include:

  • Cross-selling related products to ones consumers have already bought
  • Convincing consumers to purchase an upgraded version of a product (otherwise known as upselling)
  • Offering discounts for purchasing more than one of a single item
  • Offering free shipping for orders that exceed a specific dollar amount

Customer Lifetime Value

Visiture is big on as this is one of the most important metrics that an eCommerce retailer can track.

This figure represents the overall revenue that a retailer forecasts a customer brings to the company over the course of their relationships.

However, this figure can be difficult to track for brands with customers who return more sporadically as there are certain variables that merchants must understand. That said, there are different customer lifetime value formulas that sellers can use to help with such situations.

Moreover, much like with some of the previously mentioned granular data for eCommerce insights, some platforms will have built-in reporting features that show retailers their top customers, as well as the lifetime value of those shoppers.

For instance, offers a variety of tools for helping sellers to calculate and forecast their customer lifetime value.

Monitoring, tracking, forecasting and optimizing customer lifetime value are all critical tasks as this information can help retailers to better understand how much they can afford to spend on acquiring a customer. More than that, returning customers are simply more valuable.

As show:

“A five percent increase in customer retention can lead to an increase in profits of between 25 and 95 percent.”

Final Thoughts

Using granular data for eCommerce insights is a vital task for merchants to get comfortable with as the landscape grows increasingly competitive. Therefore, compiling and reviewing this kind of information on a regular basis will help merchants to set a solid foundation for running a data-driven eCommerce business.

Data is more critical than ever before. If sellers want to succeed in the future iteration of online retail, getting increasingly granular with data analysis is a must.

However, it isn’t just about how data is parsed, as the strategies that sellers use will need to evolve as well.

If your business is ready to 10x all of its business metrics, then reach out to Visiture and inquire about.

Through our proprietary approach to integrated marketing, we have been able to assist our clients in achieving anywhere from an 8.42 to 1 to a 23.64 to 1 return on investment.

We can do the same for your company.