Last week we discussed the best rules to use to establish the KPIs for your ecommerce website. Today we’re going to show you the metrics that are ideal for creating KPI’s, or at least using them as a base to create your own. Not all ecommerce stores or end objectives are the same, so they aren’t guaranteed to work for everyone, but they’re a great starting point. Use them as examples but remember to alter them or reject them, depending on your own objectives.
1. All KPI’s need a starting point and the conversion rate is a great one as it focuses on the outcomes. The conversion rate needs to be segmented so you’re able to break down the multiple conversion rates for email registrations, checkout pages, referral programs, pay per click rates for Google and for Bing…and so on.
2. Create a KPI for the basket abandonment rate. These are the people who fill up their basket, get all the way to the checkout and then leave at the last moment without buying from you. Very frustrating! By measuring basket abandonment you can begin making steps to increase the number of full checkouts such as follow communications with those customers as reminders or to get feedback.
3. Work out the quickest and the cheapest way for you to bring in the most money, which is often increasing the size of the orders being placed. Measure the average order value and use the information to help you work to increase the number of orders that are made, increase the average order size or perhaps increase your prices. You could use the information to cross sell for example or come up with other promotional marketing methods.
4. Take the time to measure the behaviour of the customers on your website, paying particular attention to how long it takes them to complete an order and any other outcome, such as opening an account or signing up for your newsletter. Don’t be tempted to only concentrate on the ones that buy. You want to know the success or failure rate of your marketing campaigns and the impact they have over many visits from each customer for real in-depth insights.
5. Visitor loyalty is a good performance indicator; measuring how many times your customers return to your website and engage. You can measure the different ways you’re engaging customers, such as your social media efforts, blog and video marketing. This is a good way of evaluating data and the impact it has on your visitors. This data can then be tied into the conversation rate.
6. Finally always involve the voice of your customer. Produce a simple survey that will help you to learn more about your conversion rate, your customers and how your website performs. Asking just a few questions, such as what brought them to your website, if they were able to complete their task and if not, why not?
Hopefully these six KPI’s will give you a good base on which to build your own relevant indicators. Give us a call today if you need help dissecting, organising and monitoring your data to help you make improvements to your business with our information management solutions.