Add to Favorite' rate in the app is the percentage of users who mark items as favourites from total user visits.
revenue in 2023
The 'Add to Favorites' rate in a digital application or website, particularly an ecommerce platform, is a crucial performance indicator. This metric refers to the total percentage of visitors who have flagged an item as a favorite or liked it during their browsing in the application. Often considered as a marker of user engagement, it showcases the users' interest in the products offered by the shopping platform. A higher rate is indicative of stronger consumer interest, and thus a potentially higher likelihood of future sales or increased user interaction.
Add to Favorites Rate in App = (Number of Favorites / Total Number of App Visits) x 100
Assume in a month, an ecommerce app had 500 visitors, and out of these, 250 users favorited at least one item. The 'Add to Favorite' rate would then be (250/500)*100 = 50%.
Understanding the 'Add to Favorite' rate offers valuable insights into customer behavior and preferences. It aids in forecasting potential sales, optimizing product placement, tweaking marketing strategies, or personalizing the shopping experience. Customers marking products as favorites often intend to revisit or purchase later, hence it becomes a tantamount predictor of conversion rates.
The 'Add to Favorite' rate depends on various factors including the app's user interface, product pricing, variety of offerings, product description, reviews and ratings, and overall user experience.
Improving the 'Add to Favorite' rate revolves around improving user experience and engagement. Some strategies include optimizing the app for quick and easy navigation, including high-quality product images, providing detailed product descriptions, and implementing compelling call-to-actions. Personalizing user experiences based on search and purchase history also enhances the 'Add to Favorite' rate.
The 'Add to Favorite' rate correlates directly with several other ecommerce metrics. It can predict potential conversion rates, substantial user engagement, and customer retention rates. High 'Add to Favorite' rates reflect positively on the website traffic and extend cart duration, leading to potential sales.