A checklist of e-commerce data investors require

A checklist of e-commerce data investors require

Posted: Tue 8th Dec 2020

If you're an e-commerce entrepreneur who's already started on the funding journey, you'll know that investors require access to granular data.

They will base their investment decisions on specific e-commerce data as it's a powerful indicator of longer-term viability and growth potential. It's like turning on the headlights in this new online world.

Here is a checklist of the data investors look for, what we call unit economics. It's no more than the data any well-run business should be collecting and analysing daily or at most weekly.

Company metrics broken down by territory, channel, device, product category and over time:

  • Revenue

  • Gross margin

  • Discount

  • Average order value (AOV)

  • Refunds

  • New and existing customers (as well as revenue/margin generated by each)

  • Total customer count over time

  • 'Active customers' over time (purchased in the last x days)

  • Online versus offline (if relevant)

Customer metrics broken down by territory, channel, device, cohort (time of first purchase), product (stock-keeping unit - SKU - or category) of first purchase:

  • Three-month, 12-month, 24-month, 36-month lifetime value

  • Cost per acquisition

  • Repeat purchase rate

  • Conversion rate

  • Ratio of lifetime value to cost per acquisition

Marketing metrics by territory, channel, device:

  • Email open rate

  • Return on ad spend (ROAS)

  • Sessions

  • Click-through rate

Basket analysis by purchase:

  • Basket make-up per purchase (first, second, third purchase etc)

  • Units per basket per purchase

  • AOV per purchase

  • Average margin per purchase

Tech stack:

  • Use of best-in-class technology, particularly the e-commerce platform

  • Best practice configuration of tools like Google Analytics

  • Best practice use of UTM tagging

While it might be tempting to kick the building of robust data processes into the long grass or only to focus on them once discussions with investors start, that's much too late. You'll find those conversations come to a grinding halt until you can formalise a reporting structure that gives them the key business indicators they need to reach a decision.

Don't miss Fran's recent Lunch and Learn webinar, where she reveals how you can use and collect your e-commerce data in order to drive growth.

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