KPI’s (Key Performance Indicator) are Key Performance Indicators. They are tools used to analyze a company’s performance in several aspects. In digital marketing, these indicators are extremely important to evaluate the results of investments made.
There are several KPI’s models to be worked on in an e-commerce, and they can help you to better segment your actions according to the results obtained. To put into practice the use of KPI’s it is necessary to make a balance of what results you really need to analyze for your business.
We list some indicators for you to know:
Traffic to Ecommerce
That’s the first KPI and the most important. You need to study if people are visiting your site. If your number of visits is considerable, and still study the times when these visits happen and in what way.
You will need to monitor your e-commerce traffic daily, analyzing it at different times and days of the week. Plan on these results and test possible actions to confirm the information.
Ecommerce Conversion Rate
The conversion rate is the average sales based on the number of visitors and the total sales made in a given time (Conversion rate = number of sales / number of visits x 100).
Several aspects can help increase this rate, such as the experience the visitor had when entering the site, whether it is easy to navigate, how the purchase process is, whether the items are well detailed to leave no doubt and even the availability of discount coupons. The coupons can be offered to those who subscribe to the newsletter or to customers who made their purchase some time ago.
Shopping Cart Abandonment
This KPI helps to understand what the faults are in the sales hopper, which is nothing more than the path this customer has taken and where he has stopped. The causes for abandoning a cart are varied: long registration time, freight value, slow delivery and unsatisfactory experience.
To solve these issues, you need to study each failure in the process. In the time it takes to register, take unnecessary information. People who buy online want agility.
Medium Ticket
The average ticket is the average amount spent on your customers’ orders, i.e. the higher the amount, the more customers are spending. It is based on the purchasing behavior of your audience. The average ticket is the ratio of the total value sold in a period to the number of orders and reveals how much your customers spend, on average, in your store.
One of the tricks to this issue is to use cross-selling. This technique is based on offering complementary products to your customer’s purchase.
Customer Acquisition Cost
The CAC (Customer Acquisition Cost) shows the amount you pay to win each customer. It’s a great tool to evaluate if you’re getting a return on investment. These investments can be events, campaigns, agency contracts and marketing professionals.
Calculation to discover the CAC: divide the sum of the investments by the number of clients won in a given period. It is worth remembering that the lower the result, the more efficient your investments will be.
Return on Investment (ROI)
ROI (Return on Investment) is a tool used to track the performance of each marketing action and know whether or not they are giving a return. See the formula: ROI = [(revenue – cost)/cost] x 100. If the result is negative, you should reevaluate your strategies.
Rejection Rate
The Rejection Rate shows the number of visitors who enter the site but do not stay on it, with no interaction clicks that would take you to another page.
If your rate is too high, it means there’s something wrong with your-ecommerce platform. The main factors that lead to an increased rejection rate are: slowness in loading the site, difficulties in finding what you want, lack of information and little content.
Channels of Acquisition
The Acquisition Channel is a Google Analytics tool that shows how people are getting into your e-commerce. By analyzing the data from the Acquisition Channels, you will know where you should invest more to have better results and which channels don’t deserve so much effort. As a result, you will optimize your acquisition investments.
Completing the KPI’s for ecommerce
The secret is to study your business and all the phases that your client goes through until they finalize a purchase. Put these tips into practice and you will get better results in your e-commerce.