T HEY ARE KEY TO MAKING DECISIONS, FOR THIS REASON IS VERY IMPORTANT FOR AN ECOMMERCE COMPANY TO HAVE A DASHBOARD TO VISUALIZE AND INTERPRETING DATA IN REAL-TIME AND TO KNOW THOSE KPIS USEFUL FOR THE COMPANY.
There’s no one-stop formula for what works. One company’s dashboard will look very different than that of another’s, depending on a variety of factors, including types of products, target audience, phase of development (new or established brand), and business goals. However, on the building out your custom dashboard, there are a few critical “blanket” KPI metrics to consider.
It’s important select your KPI metrics wisely, because the ability to monitor business performance depends on it. Some of this:
1. Total sales
In addition to looking at the total sales number itself, you’ll want to gain a better understanding of what’s influencing your sales numbers and why.
Pay attention to each of your sales channels and track how they perform over time.
Break down a few months’ worth of sales data into a daily analysis to provide a deeper understanding of any patterns. Pay attention to daily and weekly data trends. Do sales spike at a particular time? If so, examine where that traffic comes from and see if anything different happens on those days.
FOCUS ON ACTIVITIES
THAT OPTIMIZE YOUR MARKETING STRATEGY.
2. Conversion rate
Shows whether or not your site visitors are converting to customers.
Within conversion rates, there are three numbers to track closely for a more detailed view:
- How many people add items to their cart?
- How many people reach the checkout?
- How many people purchase?
BY BREAKING CONVERSION RATES DOWN TO THESE THREE STAGES,
YOU’LL HAVE A BETTER IDEA FOR EXAMPLE
OF HOW YOUR STORE IS PERFORMING.
AND WHERE THE VISITOR EXPERIENCE CAN BE IMPROVED.
3. Cart abandonment rate
On 2019, cart abandonment averages 74.2% for online retailers. This significant abandonment rate has to do with several key pain points:
- Shipping costs (no free shipping, expensive shipping, or lack of transparency)
- Slow shipping
- Long process
- Bad site UI
4. Average order value
AOV tracks the average amount spent each time a customer places an order on a website or mobile app. The AOV is often used in combination with e-commerce KPI metrics like CR and Revenue Per Visit (RPV) to assess overall performance and determine how to boost revenue growth.
Cross-selling and upselling are also excellent methods for improving AOV.
Since it costs more to acquire new customers then to keep the existing customers, it’s essential to increase the value of the last ones.
Finding your CLV makes you think, not just about the sale, but also about the full customer journey.
WILL BRING VALUABLE INSIGHTS THAT CAN BE USED
TO IMPLEMENT RETENTION EFFORTS AND REDUCE CHURN.
5. Cost Per Acquisition
CPA is a metric that measures the aggregate cost of a customer taking an action (often a sale, a click, or an app download) that leads to a conversion.
6. New vs. returning customers:
Because it’s cheaper and easier to convert an existing customer than it is to find and convert a new one, it’s beneficial to spend a good portion of your marketing efforts on retaining, engaging, and upselling existing customers.
When determining which e-commerce key metrics are important for your company to track and how to set up your metrics dashboard, consider the following:
- Relevance: Link your KPI metrics to your business goals.
- Accountability: Assign a person to each KPI for accountability.
- Measurement frequency: How frequently you measure the e-commerce KPI metrics can range anywhere from hourly to quarterly depending on the KPI.
- Simplicity: Data visualization is meant to clarify the data and de-clutter.