Keeping track of the performance of your eCommerce business is essential for success.
Whether you’re an experienced marketer or new to eCommerce, understanding key performance indicators (KPIs) and how to measure them will help you keep track of your business so that it grows in the right direction.
That being said, if you are just starting out with your e-commerce business or are planning to start one soon, this ultimate KPI guide will help you learn more about eCommerce KPIs!
In addition to covering all the details about what KPIs are, where you can find a list of common e-commerce KPIs and what they mean for your business.
What Are eCommerce KPIs?
Key Performance Indicators (KPIs) are metrics that measure the success of your business. They can be used to track progress towards specific business goals and hold teams accountable for their work.
It’s important to track and understand KPIs for your eCommerce business because they help you understand how well your store is doing. They let you know if you need to make changes to improve your sales, and what areas of your business need more attention.
There are many different KPIs you can track depending on your business type and industry. You can track KPIs by department, product category, sales channel, or in other ways to get a more detailed view of your business.
Here are a few good examples you can look into to learn more about eCommerce KPIs.
Online Presence and Traffic
When it comes to eCommerce KPIs, few are more important than your online presence and traffic. Understanding how many people are seeing your product pages and clicking through to your site will help you determine how successful your marketing efforts are.
There are a few metrics that can give you an idea of how many people are seeing your site and clicking through to make purchases. One of the most important is your bounce rate.
A high bounce rate (when someone visits your site but quickly leaves without exploring any other pages) is a sign that you need to work on your product pages, design, and copy to make them more alluring. A low bounce rate (when most visitors stay on your site and look at several pages) shows that you’ve done a good job with your product page attractiveness.
Order Tracking and Conversion
If you want to get an idea of how many visitors are actually making purchases, you need to track your order volume. This will give you an idea of how many people are clicking the “add to cart” button and purchasing your product, letting you know if your marketing is successful.
The more data you have on your order volume, the easier it will be to identify ways to improve your revenue.
Customer Satisfaction and Retention
Your customer satisfaction and retention KPIs give you an idea of how happy your customers are with your products and customer service. If you’re seeing a lot of negative feedback on social media or low rankings on review sites, it might be time to do something to improve your customer satisfaction.
When it comes to eCommerce KPIs, there are more than a few that are important to track. Understanding your online traffic, order volume, and customer satisfaction are essential to tracking the success of your business.
These KPIs will help you understand how well your business is doing and what areas you need to improve on.