Top Favourite Ecommerce KPIs for eCommerce Business By: - Elsner technologies pvt. Ltd.
Introduction.. The eCommerce space has gained much traction over the past few years, and many entrepreneurs have entered this industry. Due to this, competition has also increased a lot in this space. You need to2 constantly track KPIs
Introduction.. KPIs or Key Performance Indicators are the performance indicators people use to assess your company's performance. It is necessary to know how your company is performing so that you can make the required improvements. Data is very powerful; when you have your company data in your hand, you can work more effectively for the company In simple words, KPIs help measures how companies and individuals perform compared to their set goals. There are plenty of KPIs in 3an eCommerce business,
Top 7 eCommerce KPIs
Average Average Order Value (AOV) is the Order value money that customers spend on a single order on average. You can arrive at – Average Order Value by dividing the total revenue of your store by total orders. Try to track AOV on a monthly, quarterly, and on an5 annual basis. You
Customer Customer retention is the ratio of people Retention who sticks to yourRate eCommerce store for shopping products over a fixed period. (CRR) The time interval for calculation solely depends on you. You can measure it yearly wise, quarter wise, or any other way. The formula of CRR is as below: CRR = E – N/S * 100 6 Here, E stands for – Customers at the end
Customer Customer retention is the ratio of people who sticks to your eCommerce store for shopping Retention Rate products over a fixed period. The time interval for calculation solely depends on you. You can (CRR) measure it yearly wise, quarter wise, or any other way. The formula of CRR is as below: CRR = E – N/S * 100 Here, E stands for – Customers at the end of the period. N indicates – the number7 of customers you acquired over a period of time.
Total sales of Sales are very important for businesses; when a your storemore sales, it can earn more company generates
revenue and use it for the growth of the company. Thus, this KPI is very crucial for your eCommerce business. It is important to track your store's sales on a regular interval of time; it must be weekly, monthly, quarterly, and yearly. Small businesses with fewer products must track the sales of product units as well as 8 revenue. However, large-sized companies having a large number of SKUs can track the sales in
The traffic Website traffic is an important metric that helps volume to know how well your business is doing. More traffic means more leads, and later, you can convert those leads to sales.
You can easily track your website if you have Google analytics installed to your website. You need to go to Acquisition, then move to All traffic, and later click on Channels to check your website's traffic over a period of time. 9
Monitor your website traffic weekly, monthly,
Time spent on Time spent on the site is the average time a your website person spends on your website, from visiting the
website to leaving your website. This KPI is very easy to track; you don’t need to calculate it as it is already available in Google Analytics. Basically, it is shown under the average session duration in Google Analytics.
You must track this KPI weekly, monthly, quarterly, and annually. If people stay on your 10 website for more time reading your content and watching your products, the chances of sales
Number of The number of orders is the total orders products purchased by customers from your store. You can track this KPI on a monthly, quarterly, and annual basis. Tracking this KPI can help you a lot in inventory management. If you know how many orders are sold 11 from your store, you can create an
Cost of The cost of customer acquisition is the sum customer of money you spend on acquiring a new customer. The formula of this KPI is simple – acquisition the cost of the campaign/number of new customers. Suppose you have used $5000 for a marketing campaign, and that campaign helped you gain 100 new customers, then your acquisition cost is $50. It is important to calculate the cost of 12 customer acquisition to know the marketing
Conclusion In conclusion, we would say that the competition in the eCommerce industry has increased a lot. In this competitive market, by tracking the KPIs, you can know how your business is performing, and later you can make improvements in your business and achieve success. 13
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