The Holidays Will Be Different This Year — Here’s How To Measure Your Ecommerce Success

Global order volumes are on the decline. Shipping timelines and costs are still uncertain. And shoppers are searching for savings.  What does all of this mean for your business — especially as you kick your holiday planning into high gear?  

Retailers can still come out on top this holiday season if they prepare with the right ecommerce strategies. Brands that thrive will be the ones that set smart goals and monitor their progress — as soon as possible. Here’s how you can achieve ecommerce success in 2024.

Factor new challenges into your KPIs

Using year-over-year growth and revenue targets might not be the best barometer of holiday ecommerce success for 2024. So far, consumer purchases have been flat and many believe things will remain that way through the end of the year. If the typical holiday revenue boost doesn’t happen, judging this year against last might not be the best measure of success.

Looking back at last year’s numbers will certainly be part of the process, but there’s much more to the story. Gauging results is not just about looking back — it’s also about assessing the current market and determining what success really looks like in light of those realities and challenges.

As you create your goals, factor in pressure on the global supply chain and its ripple effects on shipping times, logistics, and price hikes. Keep a close eye on inflation and understand how it might change your customers’ spending habits. This might mean adjusting your plans to offer deeper discounts or creating a loyalty program with exclusive access to deals and products. Each plan should have clear goals and metrics for success — even in light of the circumstances.

Consider the nuances of traffic and conversion when you gauge holiday success

No matter what happens this holiday season, two top key performance indicators (KPIs) are likely to rule your measurements of success: traffic and conversion. However, there are nuances to consider for every ecommerce metric. Here are some things to keep in mind when measuring traffic and conversion:

View traffic from every angle

When you measure traffic, begin with a holistic view of your overall ecommerce success strategy to determine whether you have the right cadence of messages and promotions, launches, and email campaigns. Keep this in mind when you view website visits (both total and unique) and traffic from social, affiliate channels and other sources, like email campaigns.

As you look at traffic numbers, take a look at the source of that traffic. Pay attention to whether it’s organic, direct, paid, or from a specific campaign. If you aren’t on track to meet traffic targets, consider using back-pocket promos (read: deeper discounts). One study found that 64% of consumers are more likely to open emails from brands during the holidays, with the majority (84%) indicating their preference towards discount-related content.

Conversion is multi-faceted — consider every factor

It’s critical to get all of your operational ducks in a row before the holiday season so your digital storefront is ready for the big push. Effective website design, user experience, and streamlined checkout flows are all critical to driving holiday e-commerce success. According to marketing expert Neil Patel, the average order value grows by 30% during the holiday season, and conversion rates go up 60%.

Are there friction points in your checkout flow? Analytics can reveal where you may be losing shoppers.

With that in mind, here are a few things to consider when it comes optimizing conversion during peak season: 

• Are there friction points in your checkout flow? Analytics can reveal where you may be losing shoppers — consider simplifying forms and order fields, offering guest checkout, and adding payment options.
• Can you optimize product presentation and recommendations to increase order size? Make sure items are saved in customers’ carts when they leave your site. Many shoppers use the cart to save items for later, so this is an easy way to improve site experience.
• Are you creating a sense of urgency with your messaging? Consider adding popularity badges (“4 other shoppers are looking at this item”), communicating inventory levels (“only 3 left!”), and implementing threshold messages (“spend only $5 more to get free shipping!”) to boost conversion rates. 

To truly maximize the effectiveness of these areas and get them holiday-ready, use tools that enable conversion rate optimization testing such as A/B testing, heat mapping, click tracking, and visitor recording.

From acquisition to retention: Holiday success may require a mindset shift

All those visitors who abandoned their carts during the holidays? Retargeting and retaining them after peak season is key to long lasting success. Every abandoned cart is an opportunity — especially when you consider that the average conversion rate for cart abandonment emails last year was 18.64%. Without creating a strategy for this valuable segment of your visitors, you’re missing out on a huge piece of the post-holiday pie.

The end of peak shopping season is also the best time to check in with new customers. Open a customer feedback loop to improve satisfaction and turn shoppers into superfans of your brand. Today, 65% of customers expect companies to understand their unique needs and expectations. Collecting and acting on real customer feedback will make your shoppers feel heard — and listening goes a long way when it comes to ecommerce success.