What are the key performance indicators (KPIs) for your e-commerce business and how do you track them? (original) (raw)

Last updated on Nov 9, 2024

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If you run an e-commerce business, you need to measure your performance and progress towards your goals. But how do you know which metrics to focus on and how to track them? In this article, we will explain what are the key performance indicators (KPIs) for your e-commerce business and how do you track them using web analytics tools.

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• Key Performance Indicators (KPIs) for e-commerce: 💎Conversion Rate 💎Average Order Value (AOV) 💎Customer Acquisition Cost (CAC) 💎Customer Lifetime Value (CLV) 💎Cart Abandonment Rate 💎Return on Investment (ROI) 💎Website Traffic 💎Customer Retention Rate Tracking methods include Google Analytics, e-commerce platforms, CRM systems, and analytics tools.

• KPIs are the compass that guides your e-commerce ship towards success. As a leader in Business Intelligence, I've seen firsthand the power of data-driven decisions. Tracking the right KPIs, like conversion rate and customer lifetime value, not only highlights where you're excelling but also pinpoints areas ripe for improvement. It's like having a crystal ball that shows you exactly where to focus your efforts for maximum impact. So, set sail with confidence, knowing your KPIs will steer you towards your business goals. 🚀💼📊

• As per my Web Analytics experience , ☀️ To track this KPI, you can use web analytics tools like Google Analytics ☀️ E-commerce platforms often provide built-in reporting tools to track AOV. ☀️ You can track ROI by analyzing the performance of individual marketing channels

• The main KPIs for ecommerce storesare the same, they basically describe the user journey from when they visited the website until they place an order, it will look like this: 1. Product views 2. Add to cart 3. Checkout events 4.Purchase You might need to eliminate or add other steps based on your website customizations but the above should exists for the vast majority of ecomm stores.

• Tracking the right KPIs is essential for your e-commerce success. Here are key ones to watch: Conversion Rate: How many visitors turn into customers? Track it in Google Analytics 4 or your e-commerce platform. Average Order Value (AOV): See how much customers spend per order, found in your sales reports. Customer Lifetime Value (CLTV): Know how much a customer is worth over time. Platforms often calculate this for you. Cart Abandonment Rate: Track how many shoppers leave without checking out using Google Analytics or Shopify. Traffic Sources: See where your visitors are coming from—organic, paid, social media, etc. These KPIs help you stay on top of your store’s performance!

• The most common KPIs for e-commerce are conversion rate, number of transactions, average order value, cart abandon rate and cost of customer acquisition. Then you should consider retention KPIs such as customer lifetime value, repeat purchase rate or purchase frequency.

• Pour ton e-commerce, choisis des KPI alignés sur tes objectifs. Privilégie ceux qui sont pertinents, mesurables et réalisables. Les KPI doivent avoir un impact direct, comme les revenus par visiteur ou le coût par acquisition. Assure-toi qu'ils sont actionnables pour pouvoir améliorer ton activité. Comme le dit Neil Patel, "Les bons KPI te rapprochent de tes objectifs commerciaux." Reste focus et efficace.

• Choosing the right KPIs is crucial for e-commerce success. It's important to remember that while revenue per visitor or cost per acquisition provides direct insight into financial performance, integrating customer satisfaction metrics can offer a more holistic view of business health. This approach ensures not only profitability but also long-term customer loyalty and brand strength.

• I'd suggest starting in reverse order and discarding any irrelevant KPIs. The first and most fundamental step is to define the objective and envision the ideal end product. The second step will eliminate 90% of KPIs, leaving you with less than 10% of those - Divide your business into three main phases: Acquisition, Conversion, Retention. Then, decide which phase you'd like to focus on. From that point, you'll have no more than 5-10 performance indicators. While not all of them will be equally efficient at providing insights, tracking all of them will still be more beneficial than not doing so.

• Choosing the right KPIs for my digital product is essential to correctly measure performance and therefore make the right decisions. To choose the right KPIs, I start with my business objectives. For example, what if I want to increase the completion of my purchase tunnel? I'll use KPIs to track the completion of my purchasing tunnel and, if necessary, the rates of passage through each stage. If I want to convince users to create an account during the booking tunnel, I'll track the % of accounts created for users who convert.

• 1. Native Integration: platforms like Shopify or WordPress have native integrations with Google Analytics and other similar platforms. 2. Advanced manual integration using Google Tag Manager client-side and server-side tracking. it requires to have some knowledge of how to use it and how to configure tracking for various destinations but you can hire someone to do that / handle that for you or use software like @getelevar https://www.getelevar.com/

• When setting up your tracking, be carefull to use mostly native e-commerce dimensions (like GA or Piwik Pro e-commerce features). If you try to create custom events for add to cart or conversions you will not be able to use your tool native reports.

• Integrating web analytics tools like Google Analytics into your e-commerce platform is crucial for tracking your KPIs effectively. These tools not only provide a wealth of data on user behavior and site performance but also allow for the customization and segmentation of this data to align with your specific business goals. By meticulously setting up and configuring your KPIs within these tools, you can gain actionable insights that drive strategic decisions and foster growth.

• monitoring website traffic and user engagement (like sessions, bounce rate, and page views) helps optimize website performance. Set up these metrics in your web analytics platform and regularly analyze trends to make informed decisions for improving your e-commerce business.

• Knowledge is Power! It is absolutely vital to both know & analyse your data to identify your growth opportunities, whether on website, advertising, sales team, customer experience or any other part of your business. Based on my personal experience, I recommend tracking identical website data using multiple analytics tools such as GA4, Adobe Analytics, etc. This approach allows you to set up & track the same key events/conversions/triggers, providing two confirmation sources to ensure the reliability of your data. Since, trusting the wrong data can be just as detrimental as not tracking data at all - it will lead you nowhere!

• Understanding and monitoring these KPIs is crucial for e-commerce success. Revenue and conversion rates directly reflect the business's health and efficiency in converting visitors into customers. The average order value (AOV) and customer lifetime value (CLV) are critical for assessing the long-term value and profitability of customers, guiding strategies for upselling and customer retention. Meanwhile, a high cart abandonment rate signals issues in the checkout process or user experience, indicating areas for immediate improvement to capture lost sales.

• The sooner an e-commerce business identifies its key performance indicators (KPIs) and their current values, the greater the likelihood that they can act on and leverage these indicators. Here are some of the most important Key Performance Indicators (KPIs) to consider, ranked from the top to the bottom of a customer interaction funnel: Top-of-Funnel: - Traffic Volume - Customer Acquisition Cost - Return on Investments Middle-of-Funnel: - Conversion Rate - Average Order Value - Cart Abandonment Rate Bottom-of-Funnel: - Customer Lifetime Value - Customer Retention Rate - Net Promoter Score Keep in mind these metrics when evaluating the efficiency and health of your E-Commerce business to increase your chances of success!

• Pour ton e-commerce, voici quelques KPI essentiels : Chiffre d'affaires : Mesure ton succès et ta croissance. Taux de conversion : Indique l'efficacité de ton site et l'expérience utilisateur. Valeur moyenne des commandes : Évalue la valeur client et le potentiel de revenus. Valeur à vie du client : Montre la fidélité et la rétention des clients. Taux d'abandon de panier : Identifie les frictions sur ton site et les opportunités perdues. Comme le dit Neil Patel, "Les bons KPI te rapprochent de tes objectifs commerciaux." Mets ces indicateurs en place et surveille-les de près.

• The success of your e-commerce business hinges on tracking key performance indicators (KPIs). Some crucial KPIs include revenue (overall sales success), conversion rate (effectiveness of your website in turning visitors into buyers), average order value (how much customers typically spend per purchase), customer lifetime value (predicting a customer's total revenue contribution), and cart abandonment rate (identifying lost sales opportunities due to website issues). By monitoring these KPIs, you can gauge your e-commerce health and make data-driven decisions to optimize your website and marketing efforts.

• We need to understand if the e-commerce KPIs are aligned with the company's KPIs to ensure they work together. With this in mind, the main KPIs to be analyzed in a sales operation, in my opinion, are: the ROAS of the operation (since rarely does an e-commerce operate without investments in digital), funnel metrics such as conversion rate and cart abandonment (which are usually monitored by the agency/internal team responsible), and CLV to understand customer behavior and define acquisition or retention media strategies.

• ▶️ Tracking KPIs isn’t enough you need to act on them! ▶️ Analyze data to find what's affecting performance (e.g., low conversion rate due to pricing or design issues). ▶️ Test solutions boost AOV with discounts, bundles, or upsells. ▶️ Monitor results and tweak as needed (e.g., reduce cart abandonment with trust badges or free shipping). ▶️ Keep optimizing to hit your goals!

• 1. Customer Satisfaction Survey - to collect the real growth insights from the most important people of your business(customers), instead of building & testing assumptions that might not be accurate and cost you a lot of money! 2. Experiment, experiment, and experiment - to make sure that you've tried out multiple variants in any area of your business(marketing, design, product positioning, pricing, etc.), and have sticked to the best one.

• To improve my KPIs, I analyze what can influence them: a particular traffic source, a user segment, a specific page? Then I define test hypotheses based on data, and run A/B tests to validate these hypotheses in a meaningful way.

• Améliore tes KPI e-commerce : Analyse des données : Identifie les causes des mauvaises performances. Si ton taux de conversion est faible, cherche les raisons : prix, produits, design, confiance. Test et expérimentation : Essaie différentes stratégies. Par exemple, augmente la valeur moyenne des commandes avec des remises, bundles, upsells ou cross-sells. Surveillance et ajustement : Évalue l'impact de tes actions. Si le taux d'abandon de panier est élevé, simplifie le checkout, ajoute des badges de confiance ou offre la livraison gratuite. Comme le dit Neil Patel, "Utilise les KPI pour guider tes décisions et optimiser ton succès commercial."

• There are several approaches to improving Key Performance Indicators (KPIs) for an e-commerce business. First, it is important to clearly define your business goals and objectives, and then choose KPIs that align with those goals. Next, regularly monitor and track your KPIs to identify areas for improvement, and use the insights gained to make data-driven decisions. Additionally, consider A/B testing different strategies, such as pricing or marketing campaigns, to see which ones have the greatest impact on your KPIs. Finally, continually analyze and optimize your website and user experience to improve conversion rates and increase customer loyalty.

• Remember to always follow/set KPIs' based on what is driving more revenue/users to your website, not based on what you 'feel' Use a web analytics tool that you need and make sure that your team knows how to use it, do not implement several tools and get distracted because someone said that the x tools is better than y.

• The heartbeat of a business lies in its ability to understand the pulse of its customers. Just as vital signs reveal the health and wellness of an individual, Return Rate and Customer Satisfaction (CSAT) serve as crucial marker, offering insights into the perception and happiness of an e-commerce venture. These metrics embodies VOICE OF THE CUSTOMER. Understanding the fluctuations and trends in these metrics enables leaders to diagnose underlying issues, take proactive action, prescribe necessary remedies, and cultivate a thriving enterprise. It is more like a skilled Doctor who interprets symptoms to guide treatment, business leaders must heed the signals conveyed by Return Rate and CSAT to achieve success

• Many businesses often overlook the importance of Customer Satisfaction Surveys. While you may spend a whole of time building and improving aspects that the CEO or any other team member consider beneficial, it ultimately falls to the customer to decide if your efforts were worthwhile. Talk to your customers - they could save you considerable time and money.

• KPIs, or key performance indicators, are essential metrics for measuring the success of your e-commerce business. Here are a few additional KPIs to consider: 1. Customer Acquisition Cost (CAC): This measures how much it costs you to acquire each new customer. 2. Average Order Value (AOV): This measures the average amount spent per customer per order. 3. Customer Lifetime Value (CLV): This measures the total amount a customer is likely to spend at your business over their lifetime. 4. Repeat Customer Rate: This measures the percentage of customers who have made repeat purchases. 5. Conversion Rate: This measures the percentage of website visitors who make a purchase/conversion.

• Besides tracking KPIs, it’s also worth setting benchmarks and goals. Comparing your KPIs over time or against industry averages gives context to your performance. Also, remember that KPIs are just part of the picture—sometimes qualitative feedback from customers can be just as valuable.

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