Are you ready to know the second indicator for your e-businnes?
Let’s take a look at the e-commerce model and focus on another leading indicator such as CRR.
Do not mistake with “user”: we’re talking about customers now, visitors who decide to buy something after having appreciate many exclusive end interesting contents in your web site. In other words
1) you should be so clever to have many visitors (look at http://www.questidenari.com/?p=287)
2) your visitors should be logged
3) your logged visitors should buy your goods or services
4) your clients should be so satisfied to return.
The “Customer Retention Rate” gives information about the percentage of faithful clients who repeatedly buy a product or a service during a particular period:
CRR = repeated purchases / orders base.
The upward or downward trend of CRR must be compared with your investments in ancillary services and expenses for digitization of customer’s process of choice in the long run.
Controlling your costs doesn’t always mean save money: the successful strategy might be expensive, so you’ll stop affording increasing investments when you’re aware that too many clients are going away.