E-commerce KPI: Use indicators to go further and higher in e-commerce
KPI is the English acronym for Key Performance Indicator . It is a method used to measure results, which can be used in business. In the context of e-commerce, for example, the KPI e-commerce is used.
An e-commerce KPI is also a goal to be surpassed. Therefore, it's possible to stipulate that by the end of the year the Sales Rate (currently at 1%) should be 5%. Or, alternatively, that cart abandonment (currently at 70%) should be only 30%.
In this way, it will be possible to monitor various aspects of the virtual store and the e-commerce business as a whole to create strategies for improvement at the end of the measurement period. It will certainly take your e-commerce to the next level.
E-commerce KPI: 10 suggestions for indicators to measure and surpass in your online store
Here are 10 KPI suggestions for you to control in your e-commerce:
• Number of Unique Visitors:
This e-commerce KPI measures how many unique visitors come to your online store in a given period. In Brazil, on average, every 100 unique visitors 1 makes a purchase. So, to get 4 sales it is necessary that 400 visitors access your store.
• Sales Conversion Rate:
Measures the percentage of unique visitors who make a purchase over a given period. As stated in the previous topic, only 1% of visitors buy. The e-commerce management challenge is to increase this rate to 2%, 3%, 4% or more in your online store.
• Upselling and Cross-selling Conversion Rate:
It measures the number of customers who, after making a purchase, also buy a complementary product. In other words, this indicator aims to show you whether your upselling and cross-selling strategies are acceptable or need to be optimized.
• Return on investment:
It measures the percentage of earnings in relation to what was invested. It can be used for the store as a whole or for something specific, such as email marketing for e-commerce . According to an Adobe infographic , every dollar invested in email marketing generates a $38 return.
• Average ticket:
In Brazil, the Average Ticket measures how much in reais (R$) each customer of one or several virtual stores spends on purchases in such stores in a given period. The higher this number the better. You must work to increase it.
• Cart Abandonment Rate:
This measures the number of times visitors to your online store selected a product but did not complete the purchase. As an e-commerce manager, you should aim to minimize this rate and recover abandoned shopping carts.
Employ an e-commerce KPI to monitor cart abandonment
• Rejection Rate:
Shows the number of times visitors entered a particular page of your online store and then left without entering other pages. Ideally, they should visit multiple pages, which will lower the Bounce Rate.
• Customer Acquisition Cost:
Indicates how much was spent on Marketing to acquire a customer. For example, this e-commerce KPI can show the relationship between how much was spent on an e-commerce sponsored links campaign and how many new customers were acquired in the process.
• Exchange and Returns Fee:
This shows the percentage of products exchanged or returned out of the products sold in a given period. The lower the rate, the less you will spend on reverse logistics . To lower the percentage, identify product and process errors and eliminate them.
• Amplification Rate:
Shows the percentage of people (online and offline) who see your e-commerce brand messages and share them with others. The more this e-commerce KPI increases, the more awareness people will have of your brand.
How to measure an e-commerce KPI?
To measure an e-commerce KPI or several of them, use analytical software such as:
• SEMrush
• Dashboards of virtual stores
In addition, you can ask your accountant and other professional data scientists to provide reports with your e-commerce performance indicators. Get monthly reports, compare with previous reports and try to improve performance.
