How to use your Checkout Reports
This report is all about understanding your customers behavior when it comes to adding products to the cart and completing an order.
There are many things that can happen in between these steps. If you are able to analyze, understand and fix the (many) possible issues here, the return on your efforts is at least 100x.
Fixing the problems uncovered here can drive up sales numbers significantly!
1. Cart Abandonment
Why it matters: See how much revenue get lost due to your sub-optimal processes. Increasing trends can highlight problems with your online store.
Recovering abandoned orders has a huge potential for increasing revenue. I don't think that there ever will be a time in the distant future, when the cart abandonment rate will be 0%, but if you have a high amount of orders and still can get this below 50% or even better to around 25%-30% then you are going to get rich quick!
- Cart Abandonment Rate is the ratio of the number of abandoned shopping carts compared to the number of completed purchases.
- Abandoned Revenue is an estimate of the revenue lost due to cart abandonment.
- Abandoned Carts is the total number of abandoned carts. An abandoned cart happens when a prospective customer adds products to the cart, but leaves before completing the checkout process.
2. Checkout Funnel
Why it matters: Find out at exactly which step, in your Checkout Funnel, your prospected customers leave and why.
You can clearly see how your prospects and actual customers behave here. How many time do they spend with each step, how many of them exiting and where.
Maybe apart from the 1st step everything should go well greased and easily. Really short amount of time spent going from one step to the next, and very close to 0% leavers should be generated.
We can see in general, that people, who are not really ready to buy, do start the checkout process. So, it is normal to see higher exit rates in the 1st step, but other than that it should be very straightforward.
If you see people spending a couple of minutes with completing a step, or that some steps have exceptionally high exit rates, than you know where to look for issues waiting to be fixed.
- Average Time on Page is the average of the time users spent with this step.
- Exit Rate is the ratio of people who have exited the checkout process in this step compared to all of the people who have started this step.
- Proceed Rate is the ratio of people who have proceeded to the next step of the checkout process in this step compared to all of the people who have started this step.
3. Shipping Methods
Why it matters: You can determine here which are the most popular shipping methods used by your customers, which method generated the most revenue or people who use a specific method tend to spend more or less.
- Shipping Type is the specific method of shipping you provide. For example FedEx International Shipping.
- Share is the ratio of orders with a specific shipping method compared to all of the orders.
- Revenue is the cost of shipping paid by your customers.
- AOV or Average Order Value is the average value of the orders requested via a specific channel.
4. Payment Methods
Why it matters: You can determine here which are the most popular payment methods used by your customers, which method generated the most revenue or people who use a specific method tend to spend more or less.
- Payment Type is the specific method of payment you provide. For example PayPal.
- Share is the ratio of order with a specific method used for payment compared to all of the orders.
- Revenue is the total cost of orders made by a specific payment method.
- AOV or Average Order Value is the average value of the orders payed for via a specific payment method.