Given e-commerce’s competitive nature and environment, it is no wonder that businesses try to squeeze every piece of information to look for useful data. While that attempt can be interesting it may not always be practical. What we know is that there are certain KPIs that should be watched closely to interpret your e-commerce business’s performance. Let’s look at what they are.
KPIs are key steps in your way to success. E-commerce businesses should focus on a few KPIs and monitor them closely to understand its performance. There are many performance indicators which you might like to monitor but keep in mind that after a time having key performance indicators to look at your key goals can be a lot easier.
When you are selecting your KPIs keep in mind that you are choosing according to your goals. Every e-commerce business can have a different goal such as increasing sales, subscriptions, downloads or improving customer experience etc. These different goals require their own KPIs to understand their performance. If you were to choose increasing sales by x percent in 3 months as a goal you could have looked at daily sales, conversion rates and site traffic. If your goal was to increase the conversion rate by x percent in 3 months than you would be checking our conversion rate, cart abandonment rate, competitive price trends etc. The main idea here is that your KPIs will be selected according to your goal and which areas of business affect your goal.
E-commerce KPIs are important to reach your goals. So here are many KPIs for you to choose from:
- Daily/Weekly/Monthly/Quarterly/Annually and even Hourly Sales
- Average Order Value
- Conversion Rate
- Shopping Cart Abandonment Rate
- New customer vs Returning Customer Sales
- Product Affinity (which products are purchased together)
- Product Relationship
- Competitive Pricing
- Inventory Levels
- Site Traffic
- Unique visitors vs returning visitors
- Time on Site
- Page View per Visit
- Traffic Source
- Newsletter Subscribers
- Day Part Monitoring (when site visitors come to the site)
- Chat Sessions
- Social Media followers by different channels such as Facebook, Twitter or Instagram
- Pay-per-click traffic
- Blog traffic
- Number of product reviews and their quality
- Click-through Rates
- Affiliate Performance Rates
- Customer service email/phone/chat count
- Customer Service Average Resolution Time
- Customer Lifetime Value
- Net Profit
- Task Completion Rate
- Visitor Loyalty
There are many more of these wonderful key performance indicators or KPIs. That is why choosing a few to measure the performance of a goal is an efficient approach. Try to look at these KPIs and monitor them to produce meaning out of your data. We hope this was helpful and we wish you good luck!
Key performance indicators or KPIs are important to achieve business goals.
Good prices are important to achieve e-commerce goals of success.
Prisync, with its online price tracking software, provides you with a chance to monitor your competitors’ price activities all around the world and 24/7!