When it comes to eCommerce success, data is key. That’s where eCommerce KPIs come into the picture. If you understand the data around your business, you can use this to grow your business and conquer the space you’re operating in. Unfortunately, few online business owners understand data and have the ability to use it to their benefit.
If you’re one of those eCommerce retailers that have a data-rich business but no idea how to leverate it, we’re here to help. This informative guide will show you everything you need to know about KPIs, including which ones you should be measuring and how to use them in your business. Let’s get started.
What are KPIs for eCommerce?
Key Performance Indicators (KPIs) are measurable metrics that you can use to judge how effectively your business is meeting its key objectives. By monitoring these metrics regularly, you’ll be able to identify where your business is doing well and what areas it needs improvement in, whether it’s sales and fulfillment or customer service and marketing.
What are eCommerce metrics?
eCommerce metrics are the numbers you should be paying attention to in order to track the success of your business or alert you to any changes that need to be made to your overall eCommerce strategy. These metrics make up your KPI’s. Here’s a list of important ones to track:
Shopping Cart Abandonment Rate
This metric shows you how many customers are putting items in their shopping carts, then abandoning them before finishing the order. You want to see low percentages here, because this means higher conversions, which is great news for your business.
New Customer Orders vs Returning Customer Orders
These metrics helps you compare how many new customers your brand has with how many repeat customers you have. While new customers are great, you want your customers to be happy enough to keep coming back for more. Knowing these figures will help you improve both customer acquisition and customer retention.
Customer Lifetime Value (CLV)
This is a tricky figure, but it basically allows brands to estimate the monetary value of their entire relationship with any given customer. It’s a good indicator of the customer’s relationship with the brand and loyalty to it, so the higher the number, the better for your business.
Time on Site
This eCommerce metric helps you understand how much time visitors to your website spend browsing the pages of your store. You want this figure to be high, because more time on site translates to customers having deeper engagement with your brand.
Another metric that will help you succeed in the online marketplace, competitive pricing involves knowing your competitors’ product pricings and comparing them to yours. This comparison can help you gauge the success and growth of your business.
You don’t want this figure to be high. It essential tells you what percentage of visitors are clicking off your online store after viewing just one page. A high bounce rate indicates a significant problem with your website. You’ll need to investigate and determine where the problem lies - then fix it.
Customer Satisfaction Score (CSAT)
Another one of the key eCommerce metrics, the customer satisfaction score allows users to rate their satisfaction with the brand and product with a simple survey. Obviously, the higher the figure, the happier your customer is.
Return on Investment (ROI)
You put a lot of money into your online business, and it’s important to know if those efforts are paying off. That’s where return on investment comes in. This metric measures all your earnings against all your expenses. The higher your ROI, the better your business is doing.
Search engine optimization (SEO) is crucial to the success of every eCommerce business. That’s the average position of your company’s site on search engine results is one of the top eCommerce metrics. By knowing the average position metric, you can understand how your business’s page is performing compared to those of your competitors. You should always aim to be in the first two pages of search results.
Social Media Followers & Engagement
There’s no denying that social media is a huge part of eCommerce. Customers use platforms like Facebook, Instagram, Pinterest, and Twitter to engage with brands they love. A study done by the ODM Group found that 74% of consumers rely on social media to help with their purchasing decisions. That’s why having a large number of highly engaged followers on each of your social media pages is a good way to determine how aware people are of your brand and how much they like it.
Know the Key eCommerce KPIs You Need to Succeed!
These are just a few of the major eCommerce performance metrics you should pay attention to if you want to take your online business to new heights. It can also be helpful to track other KPIs like Revenue Per Visitor (RPV) and Email Clickthrough Rate (CTR). If you’d like to grow your eCommerce business, set some business goals, select some appropriate eCommerce KPIs to monitor, then gauge your success. Don’t stress too much if some of the metrics aren’t quite what you would like them to be. Just identify the problem and take steps to fix them. Before you know it, your online store will be doing better than ever.