Today, you have a plethora of numbers and data available for your website. You can find out every step taken by the customer and narrow down to what pushed them to make a purchase. However, most businesses do not know what to make out of their data or how to get actual actionable insights for their business. To track how your online business is doing, we need to have KPI’s – Key performance Indicators. KPI’s are a way of measuring the effectiveness and performance of your website. There are many things involved in making a website successful and tracking a set of KPI’s on a regular basis can help you greatly improve your business. Instead of making decisions based on your intuition or gut feeling, KPI’s are a way of figuring out immediate changes on your website that will directly improve your website statistics.
KPI’s are important and relevant to every department of the business. We have broken down KPI’s department wise, so that departments can measure their performance. Here is a list of top KPI’s departments must track:-
Company Net promoter score (NPS)
Net promoters score is the one measure of knowing your customer’s satisfaction with your brand experience.
Customer Lifetime Contribution ( CLTC)
This is the net present value of the profits from a customer’s purchases.
AOV (Average Order Value)
This metric helps you know the average profit you make per customer.
CAC (Customer Acquisition Cost)
CAC pertains to the acquisition costs of new customers.
User, sessions and page views
Tracking the number of page views and visits is a definitive measure of your brand penetration.
The percentage of users that make a purchase on your website.
Finance and logistics
Cash Conversion Cycle
The length of time between a firm’s purchase of inventory and the receipt of cash from accounts receivable is called the cash flow cycle.
Track how many of your deliveries reached within the estimated delivery time you had provided your customer.
This is the percentage of customers that never come back to your site for anything else.
Time to purchase
The time a customer takes to purchase a product on your website can be an important metric to plan your marketing by.
It gives you the complete picture of where your acquisition cost is low and where it is high.
Download our Whitepaper to know how to implement and analyse KPI’s for your eCommerce venture.