Drive your online store success: key e-commerce KPIs you must track!
In the exciting world of e-commerce success thrives on numbers; not just any numbers, but Key Performance Indicators (KPIs)! Stepping into the realm of e-commerce can feel like encountering a labyrinth, but e-commerce KPIs can help to navigate in our digital world.
Let's find out which are the most important e-commerce KPIs that everyone should be aware of!
Crucial e-commerce KPIs every business owner should track
In this world, numbers matter. More so when you're running an online store. Thankfully, e-commerce KPIs have been the guiding compass for store owners. So, let's dive in and explore some of the crucial e-commerce KPIs that you should never lose sight of.
Revenue: monthly, quarterly, and annual
First off, revenue! Money coming in is the bottom line for every business. Regularly keep an eye on your monthly, quarterly, and annual revenue. Regardless of how many social media likes, shares, or comments you receive, these numbers won't pay your bills. Your revenue will. It's the first signal that your business is on the right track.
Customer Acquisition Cost (CAC)
Next up is the Customer Acquisition Cost (CAC). It's the average amount you spend to acquire a new customer. It includes expenses like advertising, salaries, and other marketing costs. To calculate your CAC, just divide your total marketing expenses by the number of newly-acquired customers during a given period. If this number is high, time to rethink your marketing strategies.
Customer Lifetime Value (CLV)
On the other end of CAC is the Customer Lifetime Value (CLV). This is the total net profit expected from a customer throughout your business relationship. It helps you understand which customers to focus on and how valuable they are to your business. The best if you see a high CLV and a lower CAC.
Let's move on to the Conversion Rate. It's the percentage of site visitors who make a purchase. If 100 prospective customers visit your store and 2 of them make a purchase, your conversion rate? 2%! This is a key indicator of how well your site is convincing visitors to become paying customers.
Cart abandonment rate
Last but not least, the Cart Abandonment Rate. It’s the equivalent of customers leaving your physical store without buying, leaving their shopping trolleys behind. This metric can be surprisingly insightful. A high cart abandonment rate could indicate issues with your checkout process or shipping cost surprises. This is your cue to unroll the customer journey map and eliminate surprises.
Average Order Value (AOV)
Imagine a shopper dips into your online store. They browse, they decide, they click "buy." Congratulations! You've made a sale. But just how much did they spend? This is where your Average Order Value (AOV) comes into play. AOV is the average amount spent each time a customer places an order on your website. Here's the trick - increase the AOV, increase your profits. This means you should encouraging customers to hit "add to cart" that one extra time.
Revenue per Visitor (RPV)
Now, let's talk about Revenue per Visitor (RPV). You've got people landing on your site, but just how much value does each visitor bring to your business? By understanding your RPV, you can better set budgets and marketing efforts. Keep an eye on this one, it's a handy gauge for the effectiveness of your marketing campaigns.
Social Media Engagement KPIs for e-commerce
Social media is more than just memes and cat videos. For an e-commerce business, social media can be a gold mine for engagement. Likes, shares, comments, follows - They're valuable insights into your audience. Improve your social media engagement, and watch your brand awareness skyrocket.
Retail media network: measuring the effectiveness of advertising
Retail media network is a secret weapon that not only boosts your online shop's performance but also effortlessly tracks the effectiveness of your digital ads.
Retail media networks are platforms where online retailers display both their products and third-party advertising. Think about when you shop online, and those 'suggested for you' product placements catch your eye. That's retail media in action.
Retail media networks are treasure troves of performance data. They provide in-depth insight into the performance of digital advertising on specific platforms. KPIs used in e-commerce are enriched by indicators that can be measured by retail media platforms. One such platform is Inhabitad, which provides advertisers self-service interface and analytics.
In essence, retail media networks add another layer to the KPI tracking toolbox - going beyond traditional ways and offering a practical, dynamic way to track performance.
So buckle up, dive in, and explore retail media networks!