Do I Have Forgotten Products?
Understanding the performance of your products is essential for optimizing your website's effectiveness and maximizing revenue.
One powerful tool for gaining insight into your product performance is the "Performance Ratios" report. This report provides a comprehensive view of how your products are interacting with customers and contributing to revenue generation.
The report is structured into six distinct classes, each offering valuable insights into different aspects of customer behavior and revenue involvement:
Hidden Products
These are the products that have not received any views from visitors or recurring customers, essentially remaining undiscovered on your website.
Identifying these products is crucial for bringing them to the forefront and increasing their visibility to potential customers.
Viewed, not purchased
This category includes products that have been viewed by customers and even added to the cart but have not been purchased.
Understanding why these products are not converting into sales can help you refine your offerings or adjust your marketing strategies accordingly.
Listed, not clicked
Products in this category have been displayed on your website, either through a collection or search result, but have not been clicked on by any users to view their detail page.
Analyzing why these products are not attracting attention can help you optimize their placement or improve their presentation to encourage clicks.
B Products
These are the high-performing products that contribute significantly to your revenue, representing the 70 to 90 percent range of cumulative revenue.
Identifying and understanding the factors that make these products successful can help you replicate their success with other items in your inventory.
C Products
This category consists of products that contribute the least to your revenue, making up the bottom 10 percent in terms of revenue contribution.
Analyzing these products can help you determine whether they are worth keeping in your inventory or if adjustments need to be made to improve their performance.
A Products
These are the top-performing products that collectively generate an impressive 70 percent of the cumulative revenue.
Understanding what makes these products stand out can help you focus your resources and efforts on promoting them further to drive even greater revenue.
More than 6 classes
In addition to these classes, the report also provides a breakdown of individual product revenue alongside the percentage contribution to the total sales.
This allows you to track how each product is performing over time and identify trends in customer preferences and purchasing behavior.
As products gain more traction and contribute more to the overall revenue, they can ascend through the classes, moving from lower tiers to higher ones.
This progression reflects the growing impact of these products on your revenue stream and highlights their increasing importance to your business success.
Conclusion
The "Performance Ratios" report is a valuable tool for evaluating your product performance, understanding customer behavior, and maximizing revenue generation.
By leveraging the insights provided by this report, you can identify opportunities for improvement, optimize your product offerings, and drive sustainable growth for your business.