Are you wondering what the best e-commerce key performance indicators are?
It’s clear more and more people prefer to do their shopping online – and it’s profitable for the ones who take advantage of it! But to transform your idea into profit you need to invest in the system. Knowing the best e-commerce KPIs will help you figure things out.
But what are some of these elements and what do they tell you?
Keep reading to find out these indicators of e-commerce success and how understanding them can help you increase your business’s profits!
1. Website Traffic
Website traffic is one of the most important e-commerce key performance indicators (KPIs). It gives a clear view of the health and success of your website. It is a measure of all the visitors that visit your website in a given period of time.
It helps to gauge the effectiveness of a website’s number of page views, content, visual appeal, and overall design. This indicates how much traffic your website is receiving from different sources, such as referral sources such as blogs or social media, and any campaigns that are running.
2. Conversion Rates
Conversion rate as an e-commerce key performance indicator is an important metric to track. It tracks the rate at which website visitors take the desired action, which is typically the purchase of a product or service.
It’s important to measure rates to gain insights into the customer’s behavior. You can use this data to improve your customer experience and boost sales.
3. Average Order Value
Average Order Value measures the average customer spending when they place an order. It is a key metric for evaluating the revenue of a business as it can help to track progress over time and compare the performance of different product lines, customer segments, or marketing campaigns.
The measure of Average Order Value is made up of calculating the total revenue of the store over a period of time. Divide the total by the number of orders placed over the same time period. Use the results as the value for each order so you can understand what factors may be contributing to increases or decreases in spending.
4. Customer Acquisition Cost
Customer Acquisition Cost is the cost a business incurs to acquire a new customer. It is foundational to understanding the health of a business and setting up its long-term success.
CAC helps to identify trends in customer acquisition and provides actionable insight on optimizing the customer acquisition process. Optimizing CAC helps to increase sales and ROI, allowing businesses to thrive and grow.
5. Customer Retention Rate
Customer retention rates are one of the key performance indicators of e-commerce. This is essentially a measure of how many customers are making repeat purchases and coming back for more. It’s important to focus on this metric as it can be the difference between success and failure for any business.
Improving product packaging and labels plays a significant role in customer retention. By having attractive and informative packaging, customers will be more likely to remember and recognize the product and the brand. If you want to improve yours, check out shipping products here for more choices in sizes, colors, and high-quality materials.
Make Use of These Ecommerce Key Performance Indicators
Make use of these e-commerce key performance indicators to increase your sales and customer base. Track, analyze, and adjust your approach to ensure your business is running as profitably as possible. Start tracking your e-commerce KPIs today and take your business to the next level!