10 ECommerce KPIs & Metrics You Need To Track for Your Small Business
If you are building eCommerce websites for your small business, you want to make sure you keep track of your store's performance. It’s valuable insights you can take advantage of to improve your online business. But much better than that, you can use these eCommerce metrics to scale your business and make data-driven decisions. With the right KPIs, you can understand the performance of your website, optimize your marketing strategies, and drive growth tailored to your specific needs. It’s really a must-have for small businesses like yours. That’s why we, at 123websites, have compiled a list of all the most important eCommerce key performance indicators (KPIs) you need to track. Let’s jump right into it!
WHAT IS A KEY PERFORMANCE INDICATOR (KPI)?
A key performance indicator (KPI) is a quantifiable measure of performance over time for a specific objective. In other words, it’s the data you should analyze to see if your business is performing as it should. KPIs are crucial in helping you understand the health of your eCommerce website and drive actionable insights to improve your business strategies.
WHAT IS A KPI IN ECOMMERCE?
A KPI in eCommerce is an important metric that lets you know if your online store is on track to achieve its business goals. Tracking the right KPIs allows you to assess the effectiveness of your digital marketing campaigns, measure customer engagement, and optimize your website performance. It provides a clear view of how your eCommerce store is performing and helps you make data-driven decisions to drive growth.
WHY ARE KPIS IMPORTANT FOR YOUR SMALL BUSINESS?
KPIs are important for your small business because they provide valuable insights into your eCommerce store's performance. By tracking the right KPIs, you can:
1. Measure Conversions: Track the percentage of website visitors who convert into customers. This helps you understand the effectiveness of your promotions, campaigns, and user experience.
2. Manage Customer Acquisition Costs (CAC): Determine how much it costs you to acquire a new customer. By optimizing your customer acquisition strategy, you can ensure your marketing efforts are cost-effective and drive higher returns.
3. Enhance Average Order Value (AOV): Monitor the average amount customers spend per order. This allows you to identify opportunities to increase revenue by encouraging customers to spend more during their shopping experience.
4. Assess Customer Lifetime Value (CLV): Understand the value each customer brings to your business over their lifetime. By analyzing CLV, you can focus on retaining existing customers and building long-term relationships to drive repeat purchases.
5. Reduce Shopping Cart Abandonment Rate (CAR): Measure the percentage of customers who abandon their shopping carts without completing the purchase. By optimizing your checkout process, you can minimize cart abandonment and increase conversions.
6. Improve Bounce Rate: Track the percentage of visitors who leave your website after viewing only one page. A lower bounce rate indicates better engagement and helps identify areas for website optimization.
7. Monitor Refund/Return Rate (RR): Track the percentage of customers who request refunds or return products. By understanding the reasons for returns, you can identify areas for improvement in product quality, customer service, or website information.
8. Measure Gross Merchandise Value: Calculate the total monetary value of merchandise sold through your online store within a specific time frame. This metric helps you assess overall sales performance and identify trends.
9. Analyze Gross Profit Margin: Determine the percentage of revenue that exceeds the cost of goods sold. This metric allows you to evaluate the profitability of your business and make informed pricing and cost management decisions.
GET STARTED WITH THE BEST PERFORMING ECOMMERCE WEBSITE BUILDER
Now that you know exactly how to track your eCommerce
performance, it's time to choose the best website builder for your small business. At 123websites, we offer a powerful website builder designed specifically for small businesses like yours. Our platform provides industry-leading features to maximize customer conversion, including superior SEO capabilities, fast loading times, mobile-friendly design, coupons and gift cards, abandoned cart emails, delivery and pickup scheduling, and support for various payment providers. With 123websites, you can create a high-performing eCommerce website that drives growth for your small business.
Start tracking your eCommerce KPIs today and sign up with 123websites to get a $2500 website for free!
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