The worldwide growth of online commerce is undeniable. Figures show that, increasingly, e-businesses must be prepared to stay competitive and this implies that you know the best KPIs for ecommerce and know how to measure the profitability of your business.
Digital e-commerce brings many challenges. One of the biggest is knowing how to stand out in the midst of competitiveness, setting goals that show the improvement of the service or product provided. The use of Key Performance Indicators, also known as KPIs, is one of the ways to analyze and monitor the performance of your business in an effective and personalized way.
What is a KPI?
A KPI (Key Performance Indicator) is a value, usually numerical, that shows whether a company, team or person is meeting planned objectives. KPIs for E-Commerce are a tool that allows you to accurately and relevantly determine the health and performance of your online store. KPIs are represented by numbers or percentages and can be used to measure countless performance factors.
Although every KPI is a metric, not every metric is a KPI. This is because a metric is about a number, an indicator of a factor that is already measured. Now, the KPI is a metric that is relevant to your business, and, therefore, is a Key Indicator.
Five useful e-commerce KPIs to keep in mind
Even if there is no step-by-step best KPIs to follow, there are some common metrics that can help you optimize your planning.
Using this metric will allow you to analyze and manage long-term performance. The monitoring and division of this indicator can be done through clicks per ad or product, newsletter registration, purchases, approved payments and invoicing, among others.
2.Average ticket value
Also known as AOV (average order value), this metric is used to track the performance of promotions and other price changes, like offering a product or service combo.
3.Checkout abandonment rate
This analysis makes it possible to visualize the visitors who have an advanced purchase intention, but who for some reason have abandoned the purchase. In this way, it is possible to make an action plan to improve short-term planning. Abandoned cart recovery strategies work particularly well here.
From visitor loyalty, this metric shows how many times the same visitor returned to your site and took an action, helping to understand the behavior of regular customers.
Task completion rate will help you understand, from the customer’s perspective, the exact reasons for purchase closure. This allows you to make improvements according to your audience’s preferences.
Tools to track the performance of your KPIs
In order for your KPI analysis to be carried out effectively, it is also necessary to have tools that help to take advantage of optimized planning. Among them, Google Analytics, essential for monitoring KPIs for e-commerce.
The tool is so complete that it even has specific functionalities for e-commerce, helping to monitor metrics, understand user behavior, monitor the development and success of actions and campaigns, among others.
The proper use of KPIs for e-commerce can cause a significant improvement of your business not only from a business perspective (increased traffic and profit margin), but also benefit the experience of the target audience, building loyalty and ensuring a better service for your customer.