The digital world has brought us many good things, especially for business. At a strategic level, it is essential to make decisions based on facts, or as we would say now, on data . It is one of the keys to success, as it allows us to be clearer, more exact, and to better Singapore Phone Number List understand our clients and their behavior. We are going to focus on the most important KPI’s for an e-commerce. The good news is that it is now super easy to measure these data with tools like G oogle Analytics , or statistics within each CMS ( Content Management System , or CMS for web pages), as Shopify , PrestaShop , WooCommerce , Magento , etc.
For an online business, such as an e-commerce, it is crucial to do a good analysis of its metrics. These metrics tell us about the customers who enter our website, their behavior, such as how many pages they have visited, and for how long, the sales, the best-selling products, etc. Knowing how to read them and knowing which statistics you should prioritize is key for your business, that is, the most important KPI’s for your e-commerce. But it is one thing to measure and another to know what data is what really matters. The first thing to know is the difference between metrics and KPI’s. KPI’s vs Metrics The metrics are data . That is, all the data that tells us about the performance of a business, as well as data of general interest. For example, number of visits, sales in a month, followers on Instagram, investment in marketing, age and gender of your users and a long etc.
But KPIs are much more than just data, they are the metrics we use to measure objectives . The literal translation of KPI is Key Performance Indicator , for its acronym in English of Key Perfomance Indicator . In other words, they are the indicators of the fulfillment of strategic objectives. And in general, KPIs are the result of mathematical operations based on metrics. A very common way to measure a KPI is in percentage, since it gives you a global vision about your objective and if you are reaching it. presentation of data in dashboard. Measure the most important KPI’s for an e-commerce Therefore, before knowing which KPI’s to analyze, you must have defined your Singapore Phone Number List objectives . For example, imagine that your goal for the end of 2020 is to increase the traffic of your website by 50%, then your KPI is the percentage of increase / decrease of the differential between the visits of 2020 vs those of 2019 ((number of visits 2020 / number visits 2019) x 100).
Another example, and the most common among all e-commerce, sales. It may be that your goal for 2020 is to bill 100,000 euros, then your key metric is going to be the% of billing you need to reach those 100,000 euros. This will allow you to organize your actions throughout the year, and plan what investments in marketing and sales you will have to make to achieve that goal. KPI’s that EVERY e-commerce must measure As we have mentioned before, a KPI helps us measure our objectives. And there are 3 goals common to any online business: increase sales, increase conversion rate, and increase web traffic. Let’s see the most important KPI’s for an e-commerce. What data do we have to measure to analyze if we are meeting our objectives. Objective # 1: SELL MORE It is obvious that we are going to compare the sales of this period with the previous period as well as the invoicing , but there are also other factors to take into account. For example, the e-commerce conversion rate (that is, of all users who visit the web, how many have bought), and the number of visits .Objective # 2: HIGHER CONVERSION RATE If we want that of the visits we have, a greater number of them become purchases, there are several KPI’s that help us to see the performance of our e-commerce. Thanks to these, we can see if there are phases, stages, or parts of the web that need to be changed / improved.
The need to analyze conversion rate , the dropout rate “added to the cart” , the funnel into the payment process: ie the% of users who leave the payment process can be at the beginning because many details required personal, or in the end because the payment method is very long, trends in the type of shipping , or prices , if it is very expensive, or I only sell with discounts. digital marketing funnel. Increase conversion rate in an e-commerce Objective nº3: MORE VISITS TO THE WEB All businesses want to grow, and to grow you have to make yourself known and reach more people. In an e-commerce this translates into website traffic. The KPI’s to take into account are: site traffic (volume of visits), traffic sources (where those visits come from), CTR ( Click-Through Rate ), click-through rate on the link / ad they carry to the web and the% of bounce ( abandonment rate ). It is true that the more people visit us, the greater the probability of more sales. But we must not be tempted to just want a lot of traffic. We must make sure that these visits are of quality , that is, users really interested in our product. This way we will achieve greater profitability and we will be known by people who really like our brand.
EXTRA objective: DIGITAL ADVERTISING On many occasions, to achieve the aforementioned objectives, digital advertising is made, such as SEM or advertisements on social networks through Facebook Ads, Instagram Ads or Pinterest Ads. And to know if the investment in digital advertising is really profitable, there is a fundamental KPI: the ROAS .ROAS is the return on investment in advertising . For example, if the ROAS of your Facebook Ads campaign is 3, for every euro you have invested, you have obtained € 3 in return. It is also very easily calculated, divide the income by the advertising investment, and multiply it by 100 to see it as a percentage.Ultimately, a KPI has to help you measure an objective. And it is not necessary to analyze all the existing metrics that do not serve to measure that objective. Now what you have to do is see what your goals are and then you will know what data you need to analyze performance.