Key Performance Indicators (KPI’s) are measurements that reflect the performance and progress of a business. One of the most valuable benefits of running a website is the ability to measure KPI’s and then use this data to optimize your business. We have defined the 10 best KPIs every traffic manager should keep an eye on.
When analyzing key performance indicators for an online store, retailers should ask themselves “What goals is my online store trying to achieve?” and “what defines success for my online business?” For most online retailers, regardless of the nature of your business, you can monitor the progress of your online store and uncover new strategies with these 10 vital indicators.
Site Traffic is the most important KPI. You want to measure your online shop’s traffic for daily, weekly and monthly visits. This measure should be standard for every website owner and will allow you to analyze why there has been a dip or spike in traffic. Set a goal for the average number of visitors you want to reach on a weekly basis and develop marketing strategies to achieve this
Product Age Visits
Which pages on your site are getting the most views and which are getting the least? By analyzing the traffic going to specific product pages, you’ll have a better understanding of your customers’ preferences and how they are interacting with your site. Maybe you have a great product that customers aren’t finding and you will need to reexamine your site’s navigation and/or search engine.
Average Page Views and Time on Site
These metrics will tell you if your shop’s content is engaging and if your traffic is targeted. If these stats are low, you’ll want to reconsider the focus keywords and ad campaigns that may be bringing in unqualified traffic.
When are your customers leaving your site? Is it when they realize that they need to create an account to complete a purchase? Maybe it’s when they see the shipping costs. Analyze when exactly your customers are exiting and try to optimize those pages to engage customers to keep shopping.
How your customers arrived on your site is a great KPI. Is it from Google, emails, advertisements, social media, or another source? Invest more time in the sources of traffic that are working for you and think again about those that aren’t. Remember that the bounce rates of these referral sources are important to consider before deciding that a referral source is effective or not.
Is your online store doing what it takes to get your customers to complete a desired action? Closely monitor your conversion rate to help improve elements of your online store. Are your call-to-action buttons driving customers to take the next step? Is your traffic qualified? A/B testing plays a huge role in understanding conversion rates.
Return Rate (for e-commerce)
Analyze your new visitors vs. returning visitors. Are you taking the necessary measures to keep customers coming back? As I always say, it’s less expensive to retain a customer than it is to gain a new one. Evaluate your customer service efforts and how you maintain relationships with customers.
Net Profit (e-commerce)
Net profit = Revenue – Cost. This is essentially your bottom line and tells you the profitability of your online business after taking all costs into account. This metric will tell you if your business is successful or not.
Average Order Value (e-commerce)
This metric is useful because it tells you the sum of your sales divided by the number of orders received. This term is also interchangeable with Average Cart Value. Once you understand your AOV, you’ll be able to measure which strategies work to increase the average order of customers.
Cart abandonment rate (e-commerce)
This key figure must not be ignored. According to a Baymard Institute, an independent research company, the average e-commerce shopping cart abandonment rate is 67.75%. Why is it happening? Could it be that they are surprised with an expected cost? Did their coupon code not work? Were they not able to find out when the product would ship? Test your check out funnel and understand why your customers would leave items that they want.
It should be instinctive to closely monitor and check your key performance indicators on a regular basis, even daily! We reviewed the most important KPI’s but don’t remember that there are many more indicators of success such as new customer accounts, social media engagement, customer service open cases, pay per click conversions, newsletter open and click through rate and more! These resources should help you make sure you make the most out of all the indicators available on your site.
Read more about this subject on the ecommerce page. Also if you need help to set up tracking codes on your website, do not hesitate to contact us.