At Web Positioning Salamanca we bring you a list of the 12 metrics that you should monitor in your ecommerce . KPIs are Key Performance Indicators, values that will allow you to measure the success of the objectives you have set for your online business so that, in this way, you can make better decisions for the future of the organization.
Vital KPIs for e-commerce
To make things easier, we have included an infographic that specifies the 12 metrics that you should monitor in your e-commerce. These indicators will help you measure the economic profitability of the business, as well as some intangible values. They are just a dozen among many KPIs that you can measure. The ones you choose will depend on the objectives you set; in fact, there may be several for the same goal. This way, you will be able to identify the progress of your business.
You can monitor your business activity annually or on a monthly basis, depending on the scope you have set. By doing so, you will know what is working, what is not, and what changes you need to make to improve results.
1. ROI: Return on Investment
This is one of the most important indicators, if not the most. The ROI will tell colombia telegram lead if the business is profitable, therefore it will allow you to decide on the future of e-commerce. The value it provides is the relationship between benefits and total cost , providing evidence of the results of marketing campaigns.
Knowing the ROI helps you plan the next steps of your online business, such as new marketing strategies, budget, and even whether or not to continue.
2. YOY: Year-over-year growth
Measures the year-over-year performance of investments. This KPI is used to:
Determines the financial performance from one year to the next, whether it has grown or declined.
Different events that repeat during that time can be measured, such as income or costs.
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Depending on what you are interested in learning as an online business owner, you can do a general annual calculation or compare monthly, quarterly, half-yearly performance, etc.
3. CLV: Customer Value
It is the benefit that the relationship with a specific customer represents for the e-commerce. It is calculated as follows:
Average sales of a consumer x average number of purchases made x the duration of the relationship.
This value allows us to know which buyers provide more benefits than others.
With this information, it is possible to determine the retention marketing strategies necessary to keep current customers within the sales cycle, keeping them up to date with valuable information through web content, newsletters, etc.
4. AOV: Average Order Value
Average order value (AOV) is the total number of sales divided by the number of orders. And, as the name suggests, it will show the average basket value.
Why do you need to know this?
When the result is very low, it can mean several things. Perhaps you have not gained enough trust from the customer to increase the value of the purchases . Then, you must analyze how to get larger orders. For example, you can apply a cross-selling strategy to increase sales .
5. CR: Conversion Rate
This is the rate of visitors who convert within the online store. How many of the visitors become buyers, for example. This will help determine whether you need to make changes within the ecommerce such as improving calls to action.
Conversions are also measured by the traffic that arrives through different channels that is converted into leads, how many of these become customers, and are also reflected in the effectiveness of landing pages. This can be improved by applying A/B tests .
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6. CAC: Customer Acquisition Cost
[tweetthis]Do you know how much it costs to acquire a new customer for your business? CAC Customer Acquisition Cost[/tweetthis] This indicator is what will tell you how much you are paying for each consumer. To do this, you have to add up all the costs of the marketing strategies (inbound and outbound) between the conversion rate. With this result, you can evaluate the success of the campaigns and calculate future investments.
7. CAR: Cart abandonment rate
Anyone who has an online store is familiar with this point. Not everyone who starts a purchasing process completes it and ends up abandoning it at the last stage. There can be many reasons:
Some will have to do with the usability of the site.
Others because the order exceeds the budget they had in mind.
Or the discount coupon didn't work.
This indicator must be known and understood well in order to act accordingly. If we do not have the confidence for the visitor to complete the purchase, we are losing a very valuable opportunity. On the other hand, you can take actions to motivate the purchase, such as offering exclusive discounts .