(This is Part 3 of 3 of our Series: Assessing E-Commerce Performance)

Last week we did a sample RevPASS calculation to show you how you can compare your e-commerce performance to resorts of different size. RevPASS isn’t the only metric you can use to assess e-commerce performance. If you are looking at your own e-commerce output without a competitive set for comparison, there are five metrics you should consider looking at.

Metric 1: Conversion Rate

What is it? # transactions / # site sessions
Why? Conversion is a high-level metric that allows you to measure relative site performance. By looking at conversion rate, you can understand if your marketing is working and how many site browsers actually convert into shoppers.

Metric 2: Demand Capture

What is it? # guest days / # searches
Why? Demand capture provides a measure of conversion at the trip-day level, allowing you to examine the performance of specific dates relative to one another. Demand capture can be used to highlight days may be under or over performing for pricing optimization. 

Metric 3: Revenue per Search

What is it? Revenue / # searches
Why? Revenue per search helps translate demand capture into dollars and cents. It helps account for product and price differences that don’t show up in demand capture, as well as give an indication of average order size.

Metric 4: Revenue

What is it? No explanation needed.
Why? It the end, we are trying to maximize revenue, so checking-in against your goals for the season ensures that you are on track.

Metric 5: Return on Ad Spend

What is it? Revenue / Cost of Revenue
Why? Measuring return on ad spend measures  how much money you are making relative to every dollar you are spending on marketing. It holds you and your team accountable to the money spent promoting your business. Return on ad spend is ultimately the key to every business.

Are there any other metrics you look at? Let us know in the comments.

Post Author: Kathryn Quinn

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