Key performance indicators, or KPIs, allow businesses to work out how they are performing against their chosen objectives. They’re metrics that allow you to use business information, measuring areas of success or failure against the objectives of the business. There are good and bad KPIs. Bad KPIs are the ones that fail to teach you anything about the performance impact against your bottom line. Sure, it’s always good to know how many visits your website is getting or how many people are signed up to your email list, but that information alone won’t really teach you anything of use.
There are several rules for helping you to come up with the best key performance indicators for your ecommerce website. The rules are as follows:
1. Work out what you want the outcomes to be and begin by establishing your end results to work backwards from, i.e. what are the most valuable indicators for the business at a glance
2. Keep it simple, all KPI’s should be direct and uncomplicated.
3. Each of the KPI’s you make need to be focused on the areas where you spend the most money and should measure the success or the failure of these areas.
4. Never focus on averages, segment your KPIs.
5. Use surveys so you can listen to your customers and use their voice in your measurements.
6. Don’t forget about your competitors – include KPIs that allow you to compare your site to theirs.
7. Include pan-session analysis so you’re able to measure what happens one person makes multiple visits to your website.
Next week we’ll be taking a quick look at some of the best metrics to use for good KPIs for ecommerce websites. In the meantime, remember we’re here to help you make sense of your business information and KPIs. We have the knowledge and the tools you need that can be integrated with eBay, Shopify, Magento and Woocommerce websites, give us a call and we’ll answer any questions you may have for us.