When you’re practicing in any particular field, you need to pay attention to the benchmarks which apply to it. If you don’t know what the benchmarks are, you’re not going to aware of whether you’re meeting the mark or missing it by a wide margin. Regardless of the kind of data or results you are getting, if you don’t know in what context they apply to your business, you’re not going to be able to improve or make changes.
For this reason, you need to be aware of the benchmarks that apply to you, particularly when you’re using Click Through Rate a.k.a CTR for your website and are functioning in the e-Commerce industry. Luckily, there are various benchmarks that apply and you can look at the following areas to know what to keep an eye on.
Various Benchmarks for the e-Commerce Industry
When it comes to the benchmark for data collection, the lowest time for it is a difference of a year. The click through rate differs each month and it is difficult to make a correct reading of the results you’re going to get. For this reason, it isn’t uncommon to see proper CTR readings being done over the course of a year. Some businesses even tend to focus on this aspect on a two-year basis so that they can study the fluctuations and other issues with more ease.
The reason why data collection is encouraged for a longer period of time is that it allows for the problems to be correctly visible and be easier to identify. A click through rate can be rather fickle and what looks bad in one month might make a complete recovery in the next one without requiring much intervention from your side. Once your data has been collected though, you can move toward the next benchmark that you should follow.
Dividing Into Segments
The data you garner shouldn’t just be piled under one category. For a correct view at the click through rate your e-Commerce business enjoys, you need to define the data and consider a few other factors in mind too. By dividing it into segments, you end up increasing the significance of the data in hand. With e-Commerce businesses in particular, you want to understand which platform the clicks are coming from. This will give you a bigger understanding regarding the success or failure of your total click through rates.
On this basis, you can have it dividing into three major sections such as mobile, tablet and desktop. Not only does this allow you to optimize your e-Commerce strategy to capitalize on this aspect, it also ensures that you can apply various other functions which can make your store more attractive for users. It also helps evaluate and break down the revenue that your store generated and through which areas this was forthcoming.
Knowing Your Average
Once you have garnered the data and broken it down into different segments, you want to be aware of where your standing is in comparison with your competitors. While growth in the e-Commerce industry is fast, the competition you face is usually fierce because there are plenty of stores and products as well as industry giants such as Amazon and eBay. For this reason, working out where you stand here will help you understand the kind of changes you need to make. Knowing your industry standard can play a huge impact on determining how far or how short of the mark you have fallen.
By understanding this aspect, you will be able to work out your progress and the growth you need to experience. Keep in mind that getting the average for your total click through rates can be tricky as it is not just different from industry to industry; it is also different for each segment within the same industry too. For this reason, you can turn to online tools that can crunch all the industry data and show your average in comparison to the e-Commerce industry.
Comparison through Correlation
Now that you found the average of your click through rate which applies to the industry average as well, you need to focus on the correlation of your data. Correlation will allow you to make more accurate comparisons regarding the data you get. It also gives you a clearer image of the kind of benchmark expected from you and the kind of progress you should be making.
Correlation also gives you a clearer picture of each component in your CTR strategy and how it is working out to be. At the end of the day, it also helps to highlight which areas need more work and which are underperforming. Using a simple graph and a formula, you can easily make sure that you have all the components you need to excel and grow with ease.
With these industry benchmarks, you will be able to utilize and improve your click through rate with bigger success.