Do you want to know what are the key KPIs for online stores? If yes, then keep reading this article.
Keeping tabs on your stats as an online retailer is crucial for gauging success. There is a lot of emphasis on e-commerce indicators. Metrics in online commerce may tell you the average order size, the number of times customers return to your site, and the price per customer acquisition, among other things.
How do you define key performance indicators, metrics, and KPIs for online stores?
KPIs and other metrics to measure success for online stores provide valuable insights into how well an enterprise is doing as a whole. How many people are buying from you each day? How frequently do people come back as buyers? Are potential buyers leaving items in their virtual shopping carts?
All of this and more may be learned by tracking some simple KPIs for online stores. There are 15 indicators that every e-commerce brand should track, but the most important ones will vary from company to company. Brands may use these metrics to see which products are selling well, how often customers buy specific things, whether or not there are issues with the payment gateway., and much more.
Key Indicators For Your Online Store’s Success
Now that you know why it’s important to track all of your e-commerce analytics, you’re probably wondering where to start. Profitmetrics merchants are in luck because the platform provides a robust dashboard loaded with all of the metrics mentioned above.
Even if you don’t use Profitmetrics, your own e-commerce platform or, at the very least, Google Analytics, can help you locate them. We’ve already established that we think there are 15 must-have metrics.
The Conversion Rate in Sales
Your conversion rate will be one of the most crucial metrics to track; albeit we won’t put it in any particular order here. Databox found that conversion rate was the e-commerce KPI most valued by nearly 40% of respondents.
Moreover, the percentage of website visitors that ultimately make a transaction is known as the conversion rate (CVR).
Value of Typical Orders
The number of money shopper’s usual one-time purchase price on your website is represented by the AOV metric.
In order to do the math, use this formula: Average Order Value = Total Revenue / Number of Orders. Your AOV is a valuable measure to monitor since it allows you to estimate income and set attainable targets for acquiring new clients.
Besides this, in order to make $10,000 in sales in a given month, for instance; you’ll need to attract at least 222 buyers with an average order value of $45 per.
Average Cost Per New Customer
Customer Acquisition Cost is a metric used to assess how much it costs to gain a new client (CAC). Another measure you’ll have to figure out depends on how much of your marketing expenditure goes toward acquiring new customers.
The equation for the cost of attracting a new customer is CAC = Marketing Expenditures / New Consumers. If your monthly ad budget is $1,000, and you spend that every month to bring in 100 new customers, your CAC is $10. Maintain a close eye on this indicator to make sure it doesn’t sneak up on, or even past, your CLV.