As a well-established eCommerce business, you always look for opportunities to increase your revenue. If yes, then you need to measure your Key Performance Indicators (KPIs) that helps businesses to achieve their overall sales.
Track your important KPIs, which are essential to maximize your overall business revenue and achieve customer loyalty in your brand. Are you thinking, how tracking all the important eCommerce key performance indicators (KPIs) can help your e-commerce business? Before diving deep into the most important metrics, it’s essential to understand KPIs better.
What is a KPI?
The Key Performance Indicators (KPIs) can accurately showcase your business insights, goals and determine whether it’s moving in the right direction. To Plan the Ecommerce Marketing Techniques properly. Additionally, these KPIs can be classified into five different types that include,
Sales
Marketing
Project management
Customer service
Manufacturing
Keeping all this in mind. We have analyzed various articles and proven e-commerce metrics that can create a big impact on your business. Ensure to keep track of these 10 important KPIs and increase your profits.
1. Website Traffic
Website traffic is the most essential growth hacking factor in eCommerce businesses. You can reach your potential customers without driving traffic to your website.
Moreover, Website traffic is something that you can’t ignore. This refers to the total number of visitors that your website receive, such as:
The total number of page views.
The number of pages that every individual visits before he/she leaves your website.
The average amount of time that every visitor spends on-time website.
2. Conversion Rate
Every e-commerce business wants to improve its conversion rate, as they put so much effort into driving traffic. Just imagine, your website receives more visitors daily but you don’t get potential buyers.
For example, if 1000 people visit your ecommerce store, out of them only 100 people convert into buyers. This can overlap your success rate, you need to convert more buyers in simple terms. For this, you can calculate your conversions for overall website traffic such as,
Additionally, you can increase your company or brand standards by tracking this important KPI.
3. Shopping Cart Abandonment Rate
This is one of the eCommerce KPIs that makes retailers get frustrated. Customers will add products to their carts and leaves before placing their order successfully. If you are experiencing a high number of cart abandonment rates, then you are having a complex checkout process.
For instance, you may have multiple steps to confirm an order or insufficient payment options for customers. Ensure to consider these KPIs and upscale your business productively.
4. Customer Acquisition Cost
Customer Acquisition Cost is popularly known as CAC, which indicates the overall expense of your company to gain a new customer. As I have mentioned earlier, the customer acquisition cost needs to be low possibly like l cart abandonment rate.
As a result, you can increase your sales by tracking the overall expenses on advertising and marketing. For example, you can track your important KPIs like paid ads (PPC), social media marketing, and content marketing.
5. Average Order Value
Average order value also known as average order size or average market basket. Which means the same meaning in all the different terms. Every e-commerce business needs to know their average order value and have CAC in check to reduce the risk of losing revenue.
You can calculate the average order value by following these two simple things:
You can simply find the average order value by dividing the revenue generated and the number of sales.
6. Customer Lifetime Value
Customer lifetime value (CLV), indicates the customer’s relationship with your brand over the entire period of time. If you wish to increase your business authority and customer lifetime values.
Make sure you focus on building a better relationship and connecting with your customers. The higher rate of customer lifetime value can drive more revenue to your business over a long period of time.
7. Customer Satisfaction Score
The customer satisfaction score (CSAT) is the most essential KPI, as it can directly make the biggest impact on your customer lifetime value and return customer orders.
Unlike other KPIs in different categories including sales and marketing, this customer satisfaction is the most difficult metric to calculate. As it involves collecting feedback and reviews from your customers in real-time.
You don’t need to make every customer take part in sharing information. Hence, the more reviews you can make results in determining the problem areas within a short time effectively.
8. Email Open Rate
Email marketing is remaining as the important ecommerce KPI stills, believe me, it’s one of the important metrics. As an e-commerce retailer, know that sending too many emails to your customers can result in spam lists.
So, you need to understand the best ways of sending emails to your customers to get better responses. Email marketing has too many metrics to track, but the open rate is considered the most important KPI.
9. Customer Bounce Rate
We have already discussed website traffic at the beginning of this blog. To get deep insights into KPIs, you need to understand these details:
Average time spent on the website (average session duration): which means the average amount of time that visitors spend on your website.
Bounce rate: the average rate of visitors who leaves your website before he/she visits another page.
Moreover, if visitors spent more time on your website then they are more likely to make purchases.
For example, if your average time that a visitor spent on your site is only 10-20 seconds, then you are losing conversions. As it’s not sufficient for customers to shop, review their cart, and make a checkout.
Make sure you track both of these KPIs, in order to find and rectify the problem areas on your e-commerce business.
10. New Customer Orders vs. Returning Customer Orders
This KPI indicates the number of new customer (first time) orders vs. returning customer orders. As gaining new customers for your business is really essential, but it’s also essential to maintain your returning customer orders significantly.
While building an e-commerce brand, you are also creating customer loyalty in your brand. As are the result of building customer loyalty in your business, you can engage more customers to make purchases in the near future.
Bottom Line
Actually, there are more number of eCommerce KPIs that every business needs to track. These are the top 10 important KPIs that you can never ignore and must include in your overall marketing strategies.
Don’t worry if you have not included these important KPI metrics before, it’s never too late to start focusing on It. You can build your brand and reach more potential customers by simply considering these KPIs.
So, make sure you are tracking these important ecommerce KPIs in your business. You will never regret your decision!
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