For any business, metrics and analytics are necessary to ensure you are profitable and meeting your business goals. If you’re wondering how your business is really doing and where improvements need to be made, key performance indicators (KPIs) will tell you.
In order to track and review your KPIs regularly, particularly for eCommerce companies, it’s critical that the technology or software that enables you to sell online also makes it possible for you capture the data needed to track them.
By reviewing your KPIs quarterly, you can then make informed decisions on what areas of your business need improving. The plan and action you put in place after reviewing your KPIs can make or break a business.
Today, the strongest and most successful eCommerce companies are regularly tracking and reviewing their KPIs. So, let’s dive into the KPIs most critical to the success of your eCommerce business.
- Track how much you are selling hourly, daily, monthly and annually.
- Your average order value (AOV) will tell you how much your customers are spending per online order.
- Your customer repurchase rate, or how many orders were placed by someone who already purchased from you, will give you an idea of how loyal your customers are to your brand. It’s also a good indicator of your customer service.
- Customer Acquisition Cost - This is the entire cost to your company in acquiring a new customer. CAC is calculated by taking the total marketing costs spent in defined time period and dividing that number by the number of customers acquired in the same period.
- Track your website visitors by the day, month and year, the average time spent on your site and your bounce rate, which is how many website visitors leave your site after viewing one page.
- The number of website visitors that convert to customers will tell you how well your website is aiding in that process. If you’ve got a low conversion rate, you’ll want to dig into why and what part of the process you’re losing them.
- Cart abandonment rate is important to track as that will tell you the percentage of customers that were going to convert but left your site without placing an order. A high cart abandonment rate may mean there’s a problem with your checkout or payment process.
- Inventory tracking not only ensures you place an order with a supplier so that you’re never out of stock of popular items, it also warms the hearts of your customers if you display this number in real-time on product pages.
- If marketers are using email to drive sales, key metrics to watch are your email open rate and conversion rate. If your email subscribers aren’t opening your emails, there may be a problem with the content included within. This is when A/B testing can come in handy for email marketers.
- Marketers should track campaign ROI. This is the total cost to run a campaign and the resulting total sales. Naturally, the least expensive campaigns that are the most successful will tell you where to point your arrows in the future if you’re also tracking lead source.
- If you’re running any digital ad campaigns, like Google Ads (formerly Google Adwords), you’ll want to track your click-through rate (CTR). This is the percentage of people that click on your ads.
- Last but not least is your customer satisfaction rate (CSAT). One way to track how your customers feel about your brand and products is to ask them to rate you after a sale. You might also track your Net Promoter score, which calculates how often a customer is likely to recommend your product or service.
While there are many more valuable KPIs to use to gauge how your business is doing, if you can start with this list, you’re off to a great start.
If you’d like to see how Systum helps eCommerce companies capture and track the data needed for KPIs, use the form below to schedule a time with us so we can show you.