Knowledge is the greatest asset for the people working in an industry that is having cut-throat competition. Many eCommerce businesses are still not using this asset properly or as expected. Organizations should be aware of the significance of data and information.
Digital marketers are able to enjoy the ease of access to digital analytics. Due to less popularity in the commerce market and lack of knowledge, companies are not able to use this analytics incorrect way.
There are KPIs or Key Performance Indicators for serious eCommerce store owners who want to track the performance of their online store. Let’s learn more about KPIs.
KPIs and Ecommerce
KPI as a performance measurement tool is used to evaluate factors that define the success of an online store or company. For an online store, tracking the apt KPIs at the perfect time can provide details related to company performance and how the present performance can be improved.
KPIs can be used by eCommerce as the measurable value that ensures the advancing of business milestones in an effective way. It explains the performance of the company by revealing the performance level of the individual or a team for achieving the target or business goals.
You can consider the following critical elements for future assistance for choosing the right metrics for the business-
• Baseline – It is where a comparison between you and your choice of metrics is done
• Key objectives – More objectives should be included other than brand awareness, more leads in the pipeline, traffic generation, more sales, etc.
• Strategy – One should have a defined digital marketing activity to achieve strategic goals.
• Channels- Your vision about using specific channels for strategy implementation should be clear. For instance email marketing, Google ads, etc.
• Time period – You should set the goal with a timeline.
• Forecast – This should be based on how much improvement you expect to see in the future.
The simplest way to define a KPI is to focus on your goals, strategy, and plans yearly or quarterly and add metrics around it. For instance – your sales goal could be 10% annual growth. The KPI as a gauge assesses the performance.
However, at times there are some strategic initiatives that can be termed as qualitative initiatives that cannot be easily tracked. For instance, a company may have a goal to enhance communication among teams. This is hard to measure, especially if you are not logging the internal emails, number of meetings, etc. You can still use and add KPI by reporting survey results among staff employees that handle communication.
Is there any customized KPI thing?
Yes, there are few common customized KPIs-
• Sales by product category or type – This is truly useful when a new category is introduced or a category declining.
• Sales by promotion – This involves special events, coupons, unique promotions, sweepstake registrations, and other promotions and activities.
• Sales by channel – Sales can come from Amazon, eCommerce store, physical store, and email marketing. When you know the top leading channels, you can easily prepare a marketing strategy.
• Efficiency and speed – This can be customized as per the business to know the requirement to change fulfillment providers or increase the speed of transit for certain locations.
• Call centre survey results – Customer service KPIs are used to track the number of calls, hold time, and average call time. However, such data is not always come in to use. What can work is to survey callers afterward to help detect areas of improvement, recognizing the call duration and satisfaction on the basis of goal.
Some popular KPIs used for Ecommerce stores are-
1. Conversion rate – If you want to use the conversion rate for your eCommerce store, you need to divide the total sales with a total number of visitors of the website, and multiply the result for the final percentage.
2. Shopping cart conversion rate – This will get you the exact number of visitors who purchase the products from the website and complete the checkout process.
3. Customer Acquisition cost – If you want to know how much money you are spending to gain a new customer, you can use this KPI.
4. Bounce rate – You can easily calculate the number of visitors who leave your website after visiting a single page. You need to keep this number as low as possible.
5. Average order value – You can have insight on how much customers spend on their single order. Average order value KPI will provide you the numbers.
Once you get the reliable eCommerce development services partner and set your business objectives with KPIs, you will be able to monitor and update that KPIs whenever required. If you are having an eCommerce store, it should be data-driven. For that, collecting data from all relevant eCommerce KPIs on a single spreadsheet is required. There are no such rules available for creating KPIs. However, you must remember that KPIs should indicate success or failure. Have something to say about KPIs which we didn’t mention in this article? Feel free to share it with us in the comment section. Dynamics 365 implementation for your business will bring a lot of latest features and benefits for their users.