Are Your Measuring Your ECommerce Business Against The Right KPIs?
For an online business to reach extraordinary success milestones business owners not only require to attentive but they also needs an absolute list of KPIs (Key Performance Indicator) to make sure the steady improvement for the business. Knowing the crucial facts that need to be measured for optimum growth of an eCommerce business will give them an upper hand for maintaining their online business properly with outstanding profits. We tell you how should select the appropriate KPIs for your business.
How to Define the Right KPIs for Your ECommerce Store?
The answer to this question completely depends on different factors of your eCommerce business. There are no arranged or pre-determined steps to choose the KPIs, but there are many consideration points you should always follow. As an eCommerce owner, you have to first start your business defining its future objectives and then link them to the most appropriate KPIs to measure the future goals of your eCommerce business in a proper and beneficial way.
New eCommerce owners don’t need too many KPIs to implement in the starting phase. Business experts recommend 4 – 10 to KPIs for new eCommerce owners depending on the company strength, manpower, budget, target areas, and other crucial business facts. Proper KPI selection starts with clearly defining, measuring and understanding the business areas that you want to impact with your primary goals.
The most important KPI’s for any business could be:
- Boosting your sales & marketing
- Increasing your conversion rate
- Improving customer loyalty or streamlining your business operations
All of the potential KPIs we discussed above are directly related and result-oriented to the core business goals. So, you have to determine your core business goal first and then measure your KPIs according to them in second.
Different KPIs for Different Industry
The choice of KPIs is always different for every eCommerce industry according to its business model. One thing to seriously remember, the choice of KPIs will greatly influence your online business model. The KPIs you choose should be must based on the niche of the industry in which you are operating your eCommerce business. For example, a software-based eCommerce business will focus its KPIs for higher customer acquisition, while a product selling eCommerce business will focus on its sales department.
Segment Your KPI Data
It’s really crucial that you segment your KPI data as much as you can possible. For example, if you have marketing department as your KPI, then it can be segmented by site traffic, customer time on the website, total page views per visit, social media followers, total sessions initiated, the number of quality product reviews, etc. If you are new to KPI and unfamiliar with different KPI segments, simple visit Google Analytic helpline to learn more about this criteria. It is important to look on this stage carefully because the results you will get depend on it.
Focus on Few Crucial KPIs
As you begin to select KPIs for your eCommerce business, you should be aware that the less but crucial number of KPIs you choose, the better results you will get. Try to focus on few necessary KPI metrics at beginning. As we previously discussed, every industry niche has its own crucial KPIs that should be focused on, you should try to focus on just a few key KPIs at first. Improve, implement and achieve them, and then move to the next segment of KPI selection.
5 Great KPIs for an ECommerce Business
- Conversion Rate
The conversion rate is one of the most crucial KPI metrics to focus on for every eCommerce owner. Break your conversion rate KPI to segments like email conversion rate, email registration conversion rate, pay per click conversion rate, referral program conversion rate, checkout page conversion rate, etc. in order to get most out of this KPI section. The conversion rate KPI will affect the outcome of our eCommerce business directly.
- Shopping Cart Abandonment Rate
This KPI metric will create the most financial impact in the quickest time for your eCommerce business. The visitors who made it to your cart or checkout page and ready to hand over their money, but they left! Measuring the cart abandonment rate for your eCommerce business will help you in taking action to improve it.
- AOV – Average Order Value
ECommerce owners should add AOV as a key KPI to use the data for cross-sell, test up-sell, and other promotional marketing methods, which will ultimately increase Average Order Value for your eCommerce website significantly.
- TCR – Task Completion Rate
Measuring TCR will define you the exact reasons about your site performance straight from the customers themselves. This will allow you to know and implement the necessary changes that customers want from you, not what you think should be best for your online business.
- Visitor Loyalty
This performance indicator will the measure the exact amount of people that are returning back to your eCommerce portal frequently and engaging with your online business. The visitor loyalty report will help eCommerce owners identifying the most dedicated visitors to their online business, so that they can prepare special marketing plans for them and retain the same line of customers for a long time.
The point of this article is to help eCommerce business owners to discover the most appropriate Key Performance Indicators for their business use, so that they can be benefitted with higher business reach and profit.
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