If you are running an e-commerce business, then you know all about key performance indicators. Tracking eCommerce KPIs are essential to your store’s success, but knowing which ones you need to track isn’t always easy.
Over 60% of online stores struggle to track the correct sales data which leads to inconsistent sales month in and month out. There are always areas of improvement when it comes to the conversion rate of your online store, and tracking the right KPIs will help analyze and skyrocket your buyer generation.
That’s why we’ve created this article to give you the 5 eCommerce KPIs that you cannot afford to not track!
1. Customer Acquisition Cost
The most important eCommerce KPI you need to track is your cost per customer acquisition. This sales data lets you know how much it is currently costing you to acquire a paying customer. It takes into consideration all of your marketing and sales costs and divides them by the number of customers generated.
For example, if you spend $500 in marketing and sales and close 10 customers, that means your customer acquisition cost is $50. This means that you need to spend, on average, $50 to generate a new customer.
2. Conversion Rate
The next key performance indicator you need to track is your conversion rate. Your online store conversion rate shows you how good your store is at producing sales.
Your conversion rate will give you a good idea as to how well your brand messaging, and imagery is at converting visitors into customers. If your site is producing a low conversion rate, this is usually down to a poor user experience.
3. Average Order Value
Next, you need to make sure that you are tracking your average order value. Your average order value is the average amount of money that your customers spend when buying from your online store.
This sales data is important to understand who your perfect customers are and allows you to set up more detailed advertising campaigns to specifically target these people.
4. Shopping Cart Abandonment Rate
Another key performance indicator that is crucial to your success is your shopping cart abandonment rate. This allows you to analyze how your checkout is performing when generating customers. If your abandonment rate is high, it’s a surefire sign that there is a weak spot in the checkout flow that is turning visitors away.
5. Customer Retention Rate
Your customer retention rate helps you see how good you are at keeping your existing customers. Essentially, the customer retention rate is the rate at which customers return to purchase more items from your store.
It provides you with a good inclination of how loyal and happy your customers are. Generating new customers every single month is expensive. However, it takes far less money and effort to re-engage previous buyers.
Tracking your eCommerce KPIs is becoming so much easier thanks to the next generation of eCommerce management.
Want to Learn More About eCommerce KPIs
Running a successful and profitable eCommerce business takes time and a lot of skill. There are a lot of moving pieces when trying to run your own online store and it can quickly get overwhelming. That’s why we hope this article has given you a clearer idea of exactly what key performance indicators you should be tracking in order to boost the success of your site.
If you focus on these 5 eCommerce KPIs, you’ll notice a huge difference in your store’s profits.
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