Taking your time analyzing your website’s key performance indicators (KPIs) will help uncover important site information. KPIs are metrics that you can use to learn more about your website.
Every day, your website collects tons of data, and this information helps create better and more efficient marketing strategies. There are many KPIs that a marketer should know about, but not all are worth your while.
Let us determine which KPIs you need to monitor to ensure online success.
Top KPIs and Analytics That You Should Monitor Today
Digitalauthority.me reports that tracking KPIs and analytics will help identify which areas you need to improve on and which ones are paying off. The following should be part of your list:
Basket Level Performance
Understanding your e-commerce site’s basket-level performance is simply taking a peek at your customers’ shopping carts. Which brands or products are they buying from your site? Are there competitor brands available that your customers would instead buy than your products?
Your basket level performance also gives you an idea of whether a product performs better than others. You might need to upgrade your products or decide whether to develop a complementary alliance with a competitor brand to boost your sales. Basket level performance helps you improve your products and all their aspects such as their features, dimensions, and prices.
Cost of Goods Sold
Cost of goods sold (COGS) is another top metric you should keep under your radar, especially if you’re an online retailer. It is the direct costs related to creating your products.
It is an essential retail performance metric because it can help compare the manufacturing costs of a product. This metric does not consider marketing spending or overhead spending.
COGS varies from one business to another. It is best to always note marketing metrics such as COGS to create a better, more efficient website for your audience or customers.
Customer Acquisition Cost
Your website’s customer acquisition cost (CAC) is the price you must spend to get a new customer. Consider your business overheads, sales, and marketing costs in determining CAC. You can tell that you are only losing money when the average order value (AOV) is higher than CAC.
CAC also helps marketers determine the price points of their products. You need to consider the product price points to sell low-profit products. As you grow your brand, your CAC must reduce, so it is a KPI worth considering to identify business growth.
To determine CAC, take the cost of acquiring new customers and divide it by the customers you have received in a certain period.
Customer Lifetime Value
You can’t talk about ecommerce KPI without customer lifetime value (CLTV). You need to monitor your CLTV to improve your retention capabilities. This KPI is relevant when you are selling high-end or top-tier products.
CLTV indicates the money that a person will willingly spend while shopping on your site. A person spending $100 annually on a site for five years will have a $500 CLTV. CLTV of a site reflects other metrics such as AOV, customer retention, and conversion rate.
CLTV which is close to the value of your AOV means that you have a low repeat business value; therefore, you must improve factors such as customer experience to improve your brand value.
Consider a long-term solution to your CLTV and not just a short-term campaign. You can improve your CLTV by providing the best customer service, developing high product standards, and offering amazing deals and offers.
KPIs for Product Performance
With product performance KPIs, you can understand every product’s metrics. You can evaluate every product according to its category. If you sell products through a third-party website such as Amazon, you must acquire your product performance KPIs from the retailer site.
Product performance KPIs will identify which products are getting more sales from your site or a third-party e-commerce site. From the data gathered, you can formulate strategies to boost product sales or create better campaigns for a particular product.
Net Profit
The net profit is an indicator of your e-commerce site’s overall performance. For a startup, earning a profit is a breakthrough. Having a clear picture of your money will help you budget your spending on marketing, product development, customer experience, etc.
Your e-commerce site’s net profit affects by many factors, especially shipping costs, discounts, advertising, and low-margin products. Monitor your net profit together with your profit margin to get a better picture of your site’s financial health.
Net Promoter Score
The net promoter score is not related to the financial aspect of your business; it focuses more on providing the best customer experience. It can be challenging to measure a company’s customer experience, but your net promoter score will give you an idea.
You can determine your net promoter score by asking your customers a relevant question such as, “On a scale of 1 to 10, how likely will you recommend our company to someone online?” Users that answer lower than 6 are detractors; those from 7 to 8 are passives, while those from 9 to 10 are promoters.
Shopping Cart Abandonment Rate
Not all shoppers end up buying your products. Whenever a customer decides to abandon their shopping cart, your metrics get a negative score. A site with a high cart abandonment could mean many things.
You might need to improve your checkout, shipping price, and payment options available. To find out your site’s shopping cart abandonment rate, divide the number of sales from the store with the number of carts created. Multiply the value by 100 to get the abandonment rate.
Website Conversion Rates
The site conversion rate identifies the percentage of the target market buying your products or services. Also, this KPI relates to clickthrough values on Google Search and social media. An increasing conversion rate means that you are performing well. A low conversion rate means that you must take action right away.
Final Words
These KPIs can help your business stand out, increase revenue, and promote customer retention. Learn these KPIs and analytics to get the most out of your marketing strategies and campaigns.
