What are the KPIs for E-commerce?

Control and evaluation are important functions in management because they ensure that the organization’s work plan runs smoothly and that the organization’s overall goals are met. A good performance management system is required to properly carry out the control and evaluation functions. A good performance management system must be capable of describing the business processes that occur throughout the organisation. KPIs (Key Performance Indicators) can be used to measure performance management systems and provide a good benchmark of success.

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Definition of KPI

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A KPI (Key Performance Indicator) is a metric that describes a company’s performance in attaining its business objectives.
KPIs are used by businesses to track their progress toward their goals.

Key performance indicators are measured in daily, weekly and monthly periods. A good KPI is important and constantly draws management’s attention. When someone deviates from the KPI, management has the authority to make a decision and summon the person in charge.

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What are the KPIs for E-commerce?

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The KPIs (Key Performance Indicators) will help you take your online retail business to the next level. E-commerce entrepreneurs can gauge success on sales, marketing, and customer service goals by tracking them.

In simple terms, performance metrics are measures of performance relative to some objective. Online retailers, for example, may aim to increase website traffic by 50% in the next few years. In this regard, a performance metric could be the number of daily visitors to your website or the source of traffic you receive from (pay-per-click advertising, search engine optimization, branding, etc.). You could also look at the sign or advertisement display, or a YouTube video).

Performance metrics provide information about several aspects of a goal – often more than enough – so it is common to narrow it down to a few key metrics that are high-impact. The most accurate method for measuring whether or not a business is making progress towards its goals is by using KPIs.

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Criteria for classifying goals

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It is important to know the goals and how the business sector impacts those goals before choosing KPIs. Each online retailer’s KPIs should be tailored to his or her specific goals, whether they are related to improving sales, marketing, or customer service.

The following are some examples of related goals and criteria:

The first goal is to increase sales by 10% in the next quarter. This can be measured by daily sales, conversion rates, and website traffic.

2nd Goal – Increase conversion rates by 2% next year. The KPIs are conversion rate, shopping cart abandonment rate, trend in shipping rates, and competitive pricing trend.

The third goal is to increase website traffic by 20% in the next year. The key performance indicators include website traffic, traffic sources, promotional click-through rates, social shares, and percentage of visitors.

4th Goal – For the following six months, cut customer service calls in half.Call categorization, identification of pages visited immediately prior to calls, and events leading up to calls are all examples of KPIs.

There are numerous performance indicators, and the value of these indicators is directly related to the progress of the measured goal.

Monitoring the page someone visits before calling customer service makes sense as a KPI for GOAL 4 because it can help identify areas of confusion that can be corrected.

Although the fix will reduce customer service calls, the same performance metric will be nearly useless for GOAL 3.

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E-commerce KPIs

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[su_box title=”Marketing Related KPIs” box_color=”#f18f18″ radius=”2″]Website traffic[su_spacer size=”30″] Number of unique visitors versus returning visitors[su_spacer size=”30″] Time on site[su_spacer size=”30″] Page views per visit[su_spacer size=”30″] Traffic source[su_spacer size=”30″] Newsletter subscribers[su_spacer size=”30″] Subscribers to receive messages[su_spacer size=”30″] Chat sessions initiated[su_spacer size=”30″] Facebook, Instagram, Twitter, or Pinterest followers [su_spacer size=”30″] Pay-per-click traffic volume [su_spacer size=”30″] Blog traffic[su_spacer size=”30″] Number and quality of product reviews [su_spacer size=”30″] Brand or display advertising click-through rates[su_spacer size=”30″] Affiliate performance rates [su_spacer size=”30″][/su_box]

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[su_box title=”Sales Related KPIs” box_color=”#f18f18″ radius=”2″]Hourly, daily, weekly, monthly, quarterly, and annual sales [su_spacer size=”30″] Average order size [su_spacer size=”30″] Average profit margin [su_spacer size=”30″] Conversion rate [su_spacer size=”30″] Shopping cart abandonment rate [su_spacer size=”30″] New customer orders versus returning customer sales [su_spacer size=”30″] Cost of goods sold [su_spacer size=”30″] Total market value relative to a retailer’s market share [su_spacer size=”30″] Product affinity (which products are purchased together) [su_spacer size=”30″] Product relationship (which products are consecutively viewed) [su_spacer size=”30″] Inventory levels [su_spacer size=”30″] Competitive pricing [su_spacer size=”30″][/su_box]

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[su_box title=”Service Related KPIs” box_color=”#f18f18″ radius=”2″]Customer service email count [su_spacer size=”30″] Number of calls for customer care service [su_spacer size=”30″] Customer service chat count [su_spacer size=”30″] Average resolution time [su_spacer size=”30″] Concern classification [su_spacer size=”30″] [/su_box]

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Explore Supply Chin Jobs

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Once you have established your goals and selection criteria, tracking these metrics should become a daily activity. And most importantly, Performance is what determines business, and you should use KPIs to run the business.

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