Of the new marketing efforts you implemented this holiday season, which one gave you the best return on investment (ROI)? Measuring your effectiveness from this holiday season will benefit your future holiday promotions as well as other promotions and marketing strategies throughout the rest of the year. What ecommerce lacks in face-to-face interaction, its gains in analytics. Through analytics, you can make Key Performance Indicators (KPIs) for your ecommerce and ultimately measure your ROI. KPIs are milestones on the journey to online success—what were you hoping to obtain prior to the holiday season? By monitoring these markers, you can identify the progress your business is making and ensure customers’ needs are met.
Here are seven important KPIs that you should measure for your ecommerce platform:
The online sales your business is generating tells you a lot about your product and its demand. Track sales hourly, daily, weekly, monthly, quarterly and annually to look for trends. If your sales are not where you want them to be, consider revising your product descriptions, marketing, and/or checkout for optimal customer experience.
2. Average order value:
How much money does a customer spend when purchasing from your store? Add-on products and recommended personalized products can increase order value. For instance, if you sell digital games, you can recommend similar games the customer may like or additional software that could increase the playability of the purchased game.
3. Conversion rate:
How many browsers are converting into buyers? An average ecommerce rate is around 2.5%. You can increase conversion rates by making your website easy to understand and call-to-actions clear and easy to find. Forty percent of customers will wait only three seconds for a website to load before leaving the site. Validate everything is running smoothly to avoid low conversion rates.
4. Shopping cart abandonment rate:
This is the least favorite number among ecommerce businesses—how many customer are leaving the checkout cart. There are many reasons why shoppers abandon their carts, but most surprisingly: unexpected shipping costs and longer than expected delivery times take the top spots. Make sure your cart is easily identifiable and find out specifically why customers are leaving your checkout.
How much traffic is coming to your site each day? Not only is it important to monitor your traffic volume, but it’s critical to know its source. Identifying where your visitors are coming from helps determine which channels (social media, email, search engines, PPC) are the most effective.
6. Average time on site:
If you have a high bounce rate, entice visitors to stay longer by including compelling copy, easy site navigation, quality images and thorough product descriptions. If the customer’s experience is boring, your browsers will bounce, not buy.
7. Exit pages:
Where are your customers leaving? Pinpointing what pages are causing your customers to lose interest, or don’t give them satisfactory information, will give you an idea of what types of changes are necessary to optimize their experience and your revenue.
Measuring your KPIs will allow you to make better decisions on whether your marketing strategies are working for your business. Realizing your ROI will frame the way you transform your ecommerce strategies.