So many eCommerce Key Performance Indicators (KPIs), so little time! Data is an online business’s best friend, guiding you to more traffic, sales, customer service and marketing opportunities and pointing to key gaps in your strategies. Yet, so many eCommerce entrepreneurs aren’t using this invaluable data at their disposal. The most important of these are your KPIs.
KPIs are a select group of performance indicators, or data points, that help a business owner determine how their online store is performing, compared against their main objectives. As objectives are unique, so are KPIs – which owners will choose to monitor based on specific business goals they have set. Think of it this way:
- Metrics are the units by which you measure things
- Data is the accumulation of those metrics
- KPIs are the monitoring of essential business goals, based on a variety of data points
A good example of this is the KPI ‘conversion rate.’ To monitor this KPI, you have to take two vital data points: your sales and your web store traffic numbers.
(100 sales ÷ 5,000 visitors) x 100 = 2% conversion rate
Let’s say your main goal is to increase your eCommerce traffic by 25% in the coming year. Your KPI would be website traffic, which you would monitor using a few performance indicators or metrics such as unique visitors or traffic sources.
Pro Tip: Have you tried Google Analytics Intelligence yet? By inputting your KPI questions, Google will answer them using your analytics and send you alerts. Visit our Google Analytics Intelligence guide to find out more.
KPIs can be both qualitative and quantitative, and predictive (future) or revealing (past). In short, they can cover any part of your online business operation. Generally, though, eCommerce KPIs fall into one of these five categories:
- Customer service
- Project management
In this post, we take you through creating your own KPIs based on your unique business goals and the 54 most popular eCommerce Performance Indicators (KPIs) to monitor.
Let’s get started.
Creating KPIs for Your eCommerce Business
The secret to assessing your KPIs is in being able to decipher your data to extract the actionable insights you need to improve your business based on your goals. Therefore, the first step of creating your eCommerce KPIs is drilling down your key objectives.
Yes, these will fall into those generalized groupings we mentioned – customer service, marketing, boosting sales, manufacturing and product management. However, the specifics of each will be determined by your business goals. A good KPI should be:
- Accessible in real-time
- Related to improving your bottom line
Here are four goal templates with KPI examples to get you started:
Business Goal 1: Increase site traffic by 25% in the next year
- Store traffic
- CTRs from ads and promotions
- Bounce rates
- Social shares
- Traffic sources
Business Goal 2: Increase product sales by 15% in the next quarter
- Conversion rates
- Sales per day
- Store traffic
Business Goal 3: Increase Customer Lifetime Value (CLV) by 5%
- Average purchases per customer per year
- Shopper retention average (months/years)
- Average order value
Business Goal 4: Increase conversion rate by 1.5%
- Cart abandonment rates
- Competitive pricing
- Conversion rates
And this is just the tip of the iceberg. To kick-start your strategy, we are going to take you through the 54 most popular eCommerce KPIs.
Marketing KPIs are those performance indicators that are related to your advertising and marketing goals.
1. Affiliate Performance Rates
If you want to understand which affiliate channels are performing, then you want to keep an eye on this KPI. This includes metrics such as sales from affiliates or affiliate traffic sources.
2. Average Position
This KPI gives you insights into your paid search and SEO performance by showing you what your average SERP position is.
3. Blog Traffic
By filtering traffic sources in your Google Analytics, you can find specific blog traffic data. It will show you the percentage of traffic it’s generating and your top performing pages – a useful KPI to watch to help with SEO and eCommerce content marketing.
4. Bounce Rate
Like session duration, bounce rates are a valuable KPI to gain performance into your marketing relevancy and landing pages. It refers to the number of site visitors who exit your online store or blog after viewing just one page.
This KPI is the number of clicks a specific link gets. It can be used for any particular goal – from Google and Facebook ads to email marketing, internal website clicks, backlinks and more.
6. CTR Averages
CTR KPIs point to your average number of potential shoppers or customers clicking your marketing links. This can include all marketing clicks from a variety of channels, including email marketing and display advertising CTRs – depending on your goals – and helps determine areas where optimization is needed.
7. Day Part Monitoring
If you’re trying to increase traffic or sales at a specific time of day, then day part monitoring will be an important KPI. It will also point to peak times for your website traffic, which you could use for ad or content scheduling.
8. Email Open Rate
If you want to increase your email marketing performance then your email open rate is a critical KPI. A low open rate points to poor subjects or an outdated subscriber list that needs a spring-clean.
9. Email Subscribers
Another important email marketing KPI is the number of newsletter subscribers you are signing up. We suggest that you don’t just look at email subscriber numbers as a whole, but break them down into segments, such as demographics, to see which segments are lagging. By additionally comparing your subscriber growth rate KPIs with total subscriber numbers, you will get invaluable insights into this marketing channel.
Here is our guide to the five top recommended email marketing metrics to watch, for maximum success.
Pro Tip: Not meeting your email marketing KPIs? It could be one of these four things: your email subjects, personalize your ‘from’ settings, you need to segment your subscriber lists further or you haven’t implemented enough email automation.
10. Initiated Chat Sessions
For those of you capitalizing on the power of live chat, this KPI helps you determine performance by tracking how many users engage with your chat tool. If you’re considering adding live chat to your store but still need a push, here are some benefits to inspire you: it builds trust while enabling you to deal with product questions in real-time, thus decreasing cart abandonment and increasing conversions.
11. New vs. Returning Visitors
Another important traffic KPI is the comparison between first-time site visitors and those who have visited your store before and returned. This KPI will, for example, show you the performance of your remarketing campaigns, which would reflect in higher returning vs. first-time visitors.
12. Mobile Traffic
With the rise of mobile shopping, you want to keep a close eye on mobile traffic KPIs. This will help you plan your advertising placements, site optimization and adjust marketing strategies where necessary.
13. Pageviews (Per Visit)
This is the average number of pages a store visitor views during each session. The higher the average, the more engaged your traffic is. However, it is a critical marketing measurement in terms of ensuring that your driven traffic isn’t having to click through too many pages to find the product or promotion you’re pushing.
14. PPC Traffic Volume
If you’re running Google or other pay-per-click ads, this KPI will help you monitor the performance of your campaigns by giving you insight into how percentages are increasing or decreasing.
15. Product Review Quality and Quantity
If you have goals to increase DIY SEO results, build trust and feedback, or improve your review strategies, then the number and quality of your product reviews is a very important eCommerce KPI.
16. Session Duration Average
To ascertain the average amount of time a potential shopper spends on your site, you want to track average session duration KPIs. Why is this important? If you are getting clicks but have a low duration average, this could point to issues in your marketing or UX.
17. Site Traffic
Site traffic is the overall number of visits your online store is getting. It goes without saying that this is a must-follow eCommerce KPI for any entrepreneur.
18. Social Follows and Likes
This is a useful KPI if you are trying to gauge and grow shopper loyalty and build awareness for your store. You can look at this as a whole…