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Introduction The era of ecommerce runs on data. On a daily basis, terabytes upon terabytes of information are collected and analyzed. Although these data stores hold the key to ecommerce success with valuable insight for those that can find them, there is no way that the average person can break down and understand all
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The era of ecommerce runs on data. On a daily basis, terabytes upon terabytes of information are collected and analyzed. Although these data stores hold the key to ecommerce success with valuable insight for those that can find them, there is no way that the average person can break down and understand all that sales and order fulfillment data in a reasonable amount of time. That is where Key Performance Indicators (KPIs) come into play.
KPIs allow you to organize your company’s data and set specific and actionable goals against them. From social media to shipping logistics, you can use this information to track marketing trends, warehouse inventory, and customer service interactions. By breaking your KPIs down into categories as seen in this article, you can get a better idea of which tools might help you take the next step with your business.
Here are some of the KPIs that are worth exploring for ecommerce businesses:
If you want to track your ecommerce sales effectively, these are some of the most helpful KPIs.
When it comes to managing your marketing output, you need to know how many consumers interact with your advertising material. These conversations give you a better idea of how well your marketing campaigns are performing and which ones may need a little bit of improvement.
The cost of goods sold lets you know how much your business spent manufacturing the products or services you’ve released into the world. These KPIs are ideal for revenue calculations and can help you to identify places in which to cut your production costs, should the need arise.
Repeat customers are the lifeblood of a business. Lifetime value KPIs help you track how many times particular customers return to your business and how much they’ve spent. These customers tend to cost you less to acquire, as they already have some awareness of your brand.
Instead of identifying how much repeat consumers have spent at your storefront, these KPIs will instead calculate the average amount that a generic consumer may spend on your ecommerce platform.
Wooing consumers isn’t cheap. If you want to get a better idea of how much you’re spending to win sales from your consumers, though, this KPI can run the calculations for you. That way, you can have a better idea about which advertising campaigns are pulling their weight and which ones you may need to adjust.
Want to understand the impact of your marketing? Take a look at these KPIs.
A site traffic KPI lets you know how many people come to your platform, along with what their demographics are, whether they made any purchases, and which platforms they found your ecommerce website on.
Your advertising ROI is one of the factors that influences your success. A return on ad spend KPI lets you know how your consumer revenue compares to the amount of money you spent on a particular advertising campaign. These ratios will give you a better idea about which campaigns are performing well and which may need to be fine tuned.
Bounce rate KPIs let you know how a consumer interacts with your website and what ratio of visitors are leaving your site right away. These KPIs are ideal for identifying bot behavior, too, if you think a competitor may be spamming your site.
If you run a consistent email marketing campaign, it’s important to know just how well your campaigns are doing. Newsletter subscription KPIs keep track of new and retained newsletter subscriptions, ensuring that you have a better idea of who you’re talking to when you send out your newsletter each week.
Social media is the lifeblood of the digital business. Engagement KPIs let you know who is interacting with your content online, either via comments, shares, or likes. These KPIs also let you keep track of which platforms you perform well on and how far your content has been shared by unaffiliated consumers.
Want to know how your customers feel about your products and service? Take a look at these customer service KPIs for ecommerce.
Like ROI, customer satisfaction score is an important variable that can impact your company’s success. Your KPIs generate this score based on the answers consumers provide on post-purchase or post-experience surveys.
While it isn’t always easy to get consumers to participate in these surveys, the ones that do can still provide you with valuable information about your company’s success. You can compare your existing KPI scores against the national average to determine what you could be doing more effectively.
Want to keep track of the amount of time it takes your HR team to respond to a customer’s concerns? First response time KPIs track just that. With this data at hand, you can improve your HR guidelines, specifying faster response times to cultivate improved relationships with your customers.
In a similar vein, there are KPIs available that let you know how long it takes your HR team to address and resolve a consumer’s product-related concerns.
A customer has made a purchase. Now what? Take a look at these KPIs for shipping and logistics.
No one likes to receive an order that isn’t theirs. This KPI lets you know how many packages you’ve shipped that have successfully arrived at the appropriate destination. If the order fulfillment values start to dip, then you’ll need to consider the influence it can have on customer opinions about your business.
Order accuracy data will also let you know whether your 3PL delivery line needs to be improved. If you’re sitting on an unusually low percentage of accurate orders, then there may be line errors at your warehouse that you need to address.
Whether you have invested in warehousing solutions or store your own inventory, you need to know where your inventory levels stand on a day-to-day basis. Rely on inventory level KPIs to replenish your stock when necessary and to calculate your business’s average supply-to-demand ratio.
If you’re manufacturing products several months in advance, you need to know how much of your inventory goes out per month on average. Order volume KPIs calculate your sales by day, month, or quarter, depending on your needs. You can use year-out estimates to track the ebb and flow of your sales and to pre-produce inventory for each month.
With the collection and tracking of the above KPIs, you’ll keep your finger on the pulse of the health and success of your ecommerce business. From marketing KPIs that gauge the success of your advertising efforts, to shipping and logistics KPIs that illustrate how efficiently you get products to customers, an effective KPI reporting strategy gives your company’s decision-makers all the information they need to make informed choices.
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