VC look at 5 core data of the Business-to-consumer

The day before yesterday, a senior VC told me he looked at business E-commerce website above 5 data, combined with my operating e-commerce experience, really feel that these several digital indicators is very important, coupled with a number of electrical industry senior people to exchange the general digital experience, can also see the industry average level and gap.

Website conversion rate

Website traffic, Alexa rankings of e-commerce sites are nothing, there should be no VC to see an E-commerce site traffic, ranking.

E-commerce website industry's highest conversion rate should be Taobao's first shop "Lemon green tea", 20,000 people visit the store every day, bring 1000 orders a day, conversion rate of up to 5%, should be the highest conversion rate of E-commerce in China number.

The average Chinese e-commerce site conversion rate of 1 per thousand, that is, 1000 people a day to visit the site, there is a person to buy.

Of course, the conversion rate and the industry also have a relationship, such as fence net 200,000 people visit every day, orders are 1000 per day, conversion rate of 5. But the decoration industry orders a large amount, 0.5% is normal.

The daily order of the shopping net is 400 orders, only 40000 people visit every day, the conversion rate of 1% is very good.

Like the mature E-commerce sites such as Dangdang, and get VC investment in Jingdong Mall, etc., conversion rate can be done 1%. If your ecommerce site does not reach 1% conversion rates, there is no VC to look at your site.

Conversion rate is the core of E-commerce website operation, a sales conversion rate of a few figures seems simple, in fact, an E-commerce site all departments are in fact, in order to improve the number of forwarding rate and strive to improve the proportion of conversion is the site integrated operational strength of the results, a single department and functional improvement and efforts may not be able to improve this number, And this conversion rate data to a certain extent there will be a bottleneck, improve a little bit is very difficult. An E-commerce site COO, in fact, is just staring at the conversion rate of the number to operate, otherwise it is unqualified coo.

If the supply chain is not guaranteed, the commodity price does not have the advantage, to the user does not have the attraction conversion rate to be very low. Commodity and supply have the most influence on the conversion rate, the basic decision is a few or thousand of the conversion rate range. If the supply chain is not effectively resolved, other user experience to do a good job, the market to do well, in the long run is the conversion rate is difficult to improve.

Products and technology in the conversion rate is mainly reflected in the improvement of user experience, improve user experience to improve user access to the proportion of the product page, into the proportion of the shopping cart, thereby increasing the conversion rate of the entire website.

From the shopping cart to the actual turnover rate is generally 10%, the highest such as Dangdang 30%, Shopping Network and Walking Show Network is 20%, the industry level is generally 10%. If your data does not meet this standard, there must be a major flaw in the shopping process of your website.

The second is the marketing effect, the more accurate promotion, the promotion of the shopping crowd, the higher the conversion rate. Some entertainment sites bring 100,000 people to visit each day, and there may not be one order. Search engine may bring 1000 people to visit, there are 1 people to buy, such as when when 5 years of SEM experience, from 100 dollars to bring an order, and then to 55 yuan to bring an order, the best data is 15 yuan average cost bring an order.

E-commerce website's online ROI is generally 1:1, the highest when it is said to be able to do 1:7. That is, if you invest 10000 yuan a day to promote the site, if the day can not bring 10000 yuan sales, is the promotion of failure. Or you this site is not worthy of promotion, do a good job of commodity supply chain and user experience to promote.

Finally, the level of customer service to bring high order conversion rate, good customer service can bring sales, conversion rate will be improved.

Ii. Offline ROI

Why the VC to see Offline sales conversion rate, because China's E-commerce site is still in the initial stage, only on the line within 2-3 years is not a big market. Now can be big E-commerce Web site, 80% are on the line store, directory or telephone sales, such as China's only a few years of sales up to 1 billion levels of sites: such as red children, beneficial health, 80% sales are from the line.

When I used to chat with the vice president of the fence network, he repeatedly stressed that they are not internet companies, but offline shoppers.

So now this stage, an E-commerce Web site under inaction, but also no VC attention.

But offline investing is so important a little careless, no experience on the loss is very large, such as I observed okbig this clothing e-commerce website offline Investment, they held a grand official gathering in Beijing, the website opened ceremony, spent 5 million of promotional fees, I observe his day and after the site only increased 500 people visit. Later, the site spent 1 million to participate in the Shenzhen International Clothing exhibition, the site increased the number of the day no more than 100 people. That is, under the line of the Rol for 10,000:1, that is, 10000 yuan cost, only to bring 1 effective users, you can see out is no business experience of people to operate this E-commerce website operation.

Offline Action: Telemarketing, catalogs, stores and so on, must be the channel of thought to operate to the idea of database marketing. Offline shopping malls Use the bag rate to measure the commercial effect (bag rate refers to the actual number of buyers and the proportion of the number of shops, measurement of the purchase ratio, the offline business bag rate is generally around 5%, so the sales conversion rate under the line activity is at least 1% to be said to be effective.

Iii. Repeat purchase Rate

This is also the attributes of the E-commerce Web site, that is, 1 years, in your site to buy goods, the proportion of people who go back to buy, the average level of E-commerce industry is 50%. Good customers are said to be like red children and when they reach more than 90%.

If your site does not have half of the users to generate two purchases or repeat purchases, the value of this site should be small, I think there is no VC to invest in your site. Your website may not have many goods, sales are not big, the loss is also serious, but as long as the conversion rate high and repeat the high rate of purchase, VC money in, can expand business, otherwise it is wasted.

Iv. average amount of order

Taobao an order of the average amount of 80 yuan, which is accurate data, that is, Taobao tens of billions of of the annual sales are by 50 yuan to 100 yuan commodity prices achieved. The average amount of the order on Dangdang is the same. This also reflects the entire Chinese E-commerce industry status quo.

So can the average amount of an order bigger, but also reflects the value of a website, just as a line under the shopping mall's customer unit price also reflect the commercial value of a mall. Many web sites, such as Taobao's 5 diamond sellers, but there is no investment value because their average order is only dozens of yuan, the imagination of the space is very limited.

Now the clothing and fashion supplies industry orders to do the largest average amount of the show network, the average amount of each order reached 500 yuan, this for a launch less than 1 years of the site, this is very valuable, beyond the industry average of 5 times times. That is, Taobao, wheat nets, fashion uprising and so can only sell 100 yuan of clothing, and walk show net can sell 500 yuan of clothing.

V. Number of active Users

I believe that no VC silly to see a website registered users, because not only registered users can cheat, and the user registration will never land, is no value. The hardest and most valuable indicator is the number of users who log in every day, the number of active users, and the stickiness of the user.

A consumer web site every day 10,000 of active users landing, sales have been very objective, after all, E-commerce site users landing the main purpose is to buy goods.

It is said that Jingdong Mall users stickiness and active degree is the first e-commerce industry, all users, more than 50% one months to visit 2 days to 3 days, active degree is very high. A very ugly design interface E-commerce site, every day, hundreds of thousands of active users look back to see what the new IT products, The user stickiness surpasses all Chinese entertainment website and web2.0 website, proves that the electronic commerce website is always the commodity first, the Chinese Internet one day the online commodity charm will surpass the beauty charm, watches the commodity flow more than sees the beautiful woman's flow.

Above E-commerce site What indicators are refined, not biting. Your site only above the indicators are far above the industry average level, VC is interested in you, and these fine indicators are almost no virtual: more than the general Web site traffic, registered users, orders and other rough indicators, site conversion rate, offline ROI, repeat purchase rate, per capita order amount, active membership number for investors , more valuable.

Author: Shangxiang brand.gong@zoshow.com