Inorder to progress, every business needs to be tracked. You need to know what’s working for your business and what is not. Often business owners know the importance of tracking but struggle with what and how to track it.
So to make the ordeal simple, I’m putting together an article that has the top 30 most important eCommerce metrics that you should be tracking for your business.
Lets dig deeper into the definition of each metric, the importance of calculating it and the formula. I will also link out to useful tools or resources which provide useful information about these eCommerce kpis.
What are eCommerce metrics??
Ecommerce Kpi or Ecommerce performance metrics literally show how your business is doing. It gives you a yardstick to measure the success of your business.
Selling online without keeping track of your ecommerce metrics is like crossing the road with your eyes closed. No business can survive if you don’t follow how you’re doing and compare progress over time
What is the importance of eCommerce metrics
As mentioned above, tracking eCommerce metrics is very important. Not only does it tell you where your business is headed it also helps in picking up red flags and doing course correction whenever required.
Here are a few practical examples of what makes measuring eCommerce metrics an absolute necessity:
- Measure financial performance – vital for keeping your cash flow healthy.
- Reveal the truth about performance, from the highest level (your overall business), through departments, teams and right down to each individual.
- Provide an actionable way to achieve overall business strategies and goals.
- Make sure employees are aware of what’s important to the business, by showing them what the business is being measured against.
- Highlight any issues that might otherwise go unnoticed, meaning that efficiency and productivity are given a boost.
Now inorder to make measuring eCommerce Kpis simple, we have divided the ecommerce KPIs into the following categories:
- Website KPIs
- Sales KPIs
- Marketing KPIs
- Email KPIs
- Customer service KPIs
- Products performance KPIs
- Product Category Performance KPIs
Top list of eCommerce KPIs to Measure Business Success
The ‘metrics’ of web metrics or website Kpi refers to measurement, the science of measuring websites. Specifically, measuring website events, and extracting trends.
For example: Conversion rate, shopping cart abandonment rate, average order value & gross profit margin. In this article you will get a detailed view of all the website metrics, their formula and how you can improve these kpis for the betterment of your business.
1. Conversion Rate:
Conversion Rate is a methodology made to help site proprietors in transforming guests into paying customers. CRO isn’t some dark enchantment; it is a logical testing procedure that allows you to follow various components of your site to figure out what produces a higher reaction out of your site guests.
To calculate your conversion rates, use the following formula.
Conversion Rate = (Total Number of Visitors on the Website / Total Number of Conversions) x 100
Tips to increase conversion rate:
- Make it easy to buy from you.
- Use video to humanize your brand.
- Incorporate strong calls to action (CTAs) into every piece of content on your site.
- Include subscriber or social-media follower counts.
- Give your visitors tunnel vision.
2. Shopping Cart Abandonment Rate:
The Shopping Cart Abandonment Rate is the percentage of online shoppers who add items to a virtual shopping cart but then abandon it before completing the purchase. It shows the rate of interested potential customers who leave without buying anything compared to the total number of shopping carts created.
To find out your shopping cart abandonment rate, use the following formula.
Cart Abandonment Rate = (Total Number of Completed Transactions / Total Number of Shopping Carts) x 100
Tips to reduce cart abandonment rate:
- Provide a Solid Mobile-Friendly Shopping Experience
- Making Shipping Options & Costs Clear
- Understand & Use the Best Technology Possible
- Speed up Your Ecommerce Site
- Shorten & Simplify the Checkout Process
3. Average order value:
Average order value (AOV) tracks the average dollar amount spent each time a customer places an order on a website or mobile app.Your Average Order Value (AOV) can be determined with this very straightforward equation:
Average Order Value = Total Revenue / Number of orders.
Tips to increase average order value:
- Have a Loyalty Program.
- Offer Time-Sensitive Deals.
- Give Product Discounts.
- Provide Bundle Deals.
- Execute First Time Offers.
- Show Cross-sell And Up-sell Items.
4. Gross Profit margin:
Gross profit is the profit a company makes after deducting the costs associated with making and selling its products, or the costs associated with providing its services. This is basically your benefit on the item after deal, figuring the amount you spent on the stock yourself.
It is a significant ecommerce KPI that helps business visionaries to plan ahead. You can use this formula to calculate the gross profit of your business.
Gross Profit = Total Cost of Goods Sold – Total Number of sales.
Tips to Improve Gross Profit Margin:
- Reduce direct cost of goods.
- Increase staff productivity.
- Integrate New Products or Services.
- Increase Prices.
- Improve supplier relationships.
Marketing KPIs (Key Performance Indicators) are specific, numerical marketing metrics that organizations track in order to measure their progress towards a defined goal within your marketing channels. Here are different lists of marketing KPIs that help organizations to track business data reports in order to measure their progress.
5. Bounce Rate:
Bounce rate is an Internet marketing term used in web traffic analysis. It represents the percentage of visitors who enter the site and then leave rather than continuing to view other pages within the same site.
Use the given below formula to calculate the bounce rate of your website.
Bounce Rate = Total Number of One-page Visits / Total Number of Entries to a Website
Tips to reduce bounce rate:
- Pay attention to page load time.
- Rework your product pages.
- Use high-quality images & content to captivate user attention
- Use relevant keywords that are applicable for a site.
- Convincing call-to-action
6. Exit Pages:
The exit page is the last page a guest sees before they leave your site. In straightforward words, it shows the number of individuals exit from a specific page. You can consider them to be a rate in Google Analytics and ecommerce metrics is likewise known as leave rate.
Exit Rate= Total no. of exit from the page/ Total no. of visits to the page
Tips to reduce exit page rate:
- Improve Your Brand Storytelling
- Keep Your Blog Fresh With the Right Content
- Do A/B Testing
- Create exit surveys
- Optimize Call-to-action button
7. Page Views per Visit:
Pages per visit is a Web analytics measure of how many pieces of content (Web pages) a particular user or group of users views on a single website.
Pageviews per Session = (Total Number of Pageviews / Total Number of Visitors)
Tips how to increase page views per visit:
- Responsive Design
- Create evergreen content
- Floating Social Share Buttons
- Give visitors more relevant stuff to creating a great user experience
- Your message comes first, so eliminate distractions
8. Average Time on Site:
Average time on site is the average duration of time spent viewing your site.
Tips to improve average time on site:
- Keep your headlines’ promises
- Add Video to Your Blog Posts
- Make your content interesting
- Pay attention to your pages’ readability
9. Website Traffic:
Website traffic source KPIs reveals to you where guests are coming from or how they discovered your site. This will give data about which channels are driving the most traffic, for example, natural hunt, paid promotions, or online media.
Tips to increase website traffic:
- Pay attention to good search engine optimization
- Write insatiable content
- Update “Expired” content on your website
- Promote content in relevant online communities
- Create and share high-quality infographics
PPC stands for pay-per-click, a model of internet marketing in which advertisers pay a fee each time one of their ads is clicked. It gives you the amount you’re investing on any of your promotions.
Pay-Per-Click = Total Advertising Cost / Total Number of Ads Clicked
Tips how to improve pay per click
- Focus on high-performing keywords
- Optimize your keyword bids
- Include a Call to Action
- Customize your target audience, interests, location, and search terms.
11. Social media engagement:
It reveals to you how effectively your fans or devotees are collaborating with your brand via web-based media. Social media engagement measures the public shares, likes and comments for an online business’ social media efforts.
Tips For Increasing Your Social Media Engagement
- Mention Your Followers
- Ask for feedback and reviews.
- Share a surprising statistic.
- Use Emojis to Show Humanity
- Use Social Media Management Tools
12. Referral Sources:
Referral sources encourage you to recognize which sources are sending the most guests to your site. It might be by means of natural endeavors, PPC advertisements or online media look.
Tips to increase referral sources:
- Offer Recurring Incentives for Referrals
- Encourage social media sharing.
- Provide jaw-dropping customer service.
- Collaborate in More Visible Ways.
Email KPI helps to see how well your subscribers/customers are accepting your email messages. Email KPIs help to realize the number of supporters who opened, clicked on the email that you sent.
13. Email List Growth Rate:
Email list growth rate is the measurement to follow the rate at which your list is developing. You can ascertain this by taking the quantity of new subscribers minus the quantity of the ones that unsubscribe divided by total number of your subscribers. All this multiplied by 100.
Email List Growth Rate = [(Total Number of New Subscribers – Total Number of Unsubscribes) / Total Subscribers ] x 100
Tips how to grow your email list growth rate:
- Add content upgrades to your blog posts.
- Create a new lead-generation offer
- Segment your email lists by buyer personas.
- Encourage subscribers to share and forward your emails.
- Create amazing email content.
14. Email Bounce Rate:
It is the level of messages sent that were not effectively conveyed to the subscriber’s inbox. There are two classes of email skips: hard bounces and soft bounces.
Email Bounce Rate = (Total Number of Emails that Bounced / Total Number of Emails Sent) x 100
Tips to get low bounce rate:
- Avoid Popups – Don’t Disrupt the UX.
- Create a Compelling Call-to-Action.
- Improve Your Brand Storytelling.
- Keep Your Blog Fresh With the Right Content.
- Improve Your Content’s Readability.
15. Email Open Rate:
Email open rate is the level of the absolute number of endorsers who opened an email . These rates can change contingent upon the headline and the importance of the topic for endorsers.
Email Open Rate = (Total Number of Unique Open / Number of Total Emails Sent Successfully) x 100
Tips to get good open rates:
- Use six to ten words in your subject lines to get the best open rate.
- Send your email campaigns during the work day and after lunch.
- Personalize subject lines with the reader’s name.
- Use a recognizable sender name.
16. Email Click-Through Rate:
Email click through rate is determined by the quantity of supporters that have tapped on at any rate one connection in your email showcasing effort.
CTR = (Total Number of Individuals Clicks / Total Number of Email Opens) x 100
Tips to get high click through rate:
- Keywords display in your URLs.
- Use ad extensions to increase visibility.
- Use symbols to get attention
- Raising your bid.
Sales KPIs are the metrics by which you will evaluate your team’s performance against your sales and organizational goals. For example: customer life value, returning customers, net profit, average profit margin etc…
17. Customer Lifetime Value:
Customer Lifetime Value is the key indicator metric that helps to track the total number revenue of a business. It is one of the most important metrics to measure success of any growing company. To learn how it works, seen given below formula.
CLV = (Customer’s Annual Profit Contribution x Average Number of Year as Customer) – the Initial Cost of Customer Acquisition
Tips to improve customer lifetime value
- Improve the Onboarding Process.
- Provide Value-Packed Content That Keeps Customers Engaged.
- Offer High-End Customer Service.
- Build Relationships.
- Listen to Your Customers – Collect Actionable Feedback.
18. Returning Customers:
Returning customers define the ultimate goals for your business. It is the ratio of clients from a particular time who revisits your online store to buy more products. To calculate the returning customers ratio use given below formula:
Returning Customers= (Total no. of return clients / Total no. of clients) x 100
It helps to track the daily basis report of the total number of clients that are returning to your online store.
Tips to increasing return customers
- Use personal forms of communication.
- Grow your customer base through referral programs
- Create exclusive discounts for your returning customers
- Maintain a quick response rate
19. Net Profit:
Net profit is the estimation of business’s benefit. It’s used to calculate net income or turnover of a business to put a value metric on a company. To define net profit and net profit margin use given below formula.
Net Profit= (Net Sales – Cost of Goods Sold)
Tips how increase net profit
- Reduce insurance premiums
- Reduce business Expenses
- Increase sales revenue
- Focus on strategic innovation
- Create an incredible team
20. Average Profit Margin:
Average profit margin tells you how much you make on the sale of each product or service. It helps to understand the profit margin whether your business is successful or not. Use this formula to calculate the profit margin for your business.
Average Profit Margin = Gross Profit / Revenue
Tips to improve average profit value:
- Reduce business and operating expenses
- Use inventory systems
- Analyze your profit margins
- Optimize vendor relationships
21. Customer Retention Rate:
Customer retention rate is a key performance metric that helps to determine your business growth. Improving your customer retention rate is a basic need for every ecommerce business.
To calculate & improve your customer retention rate use this formula.
Customer Retention Rate = [(Number of Customers at the End of a Period – Total Number of New Customers during That Period) / Total Number of Customers at the Start of That Period] x 100
Tips to increase customer-retention rate:
- Use cross-selling and upselling strategies
- Create a Loyalty Program
- Pay Attention to Questions
- Be Active on Social
22. Orders Per Active Customers:
Order per active customer KPIs help to measure the total number of active customers during a specific time period.
Tips to get orders per active customers
- Set customer expectations
- Answer all questions and comments
- Use Retargeting Ads
- Improve KPIs around customer service
- Build trust through relationships
23.Customer Acquisition Cost:
This ecommerce KPI helps to know about the required cost per customer. Here you find the actual cost that you’re spending to secure another client.
CAC = Costs Spent on Acquiring Customers / Number of Customers Acquired
For example: If you are spending an average of Rs.500 to acquire every customer but your average order value is only Rs.495, that means your business is still operating at a loss.
Tips to Reduce Customer Acquisition Cost
- Turn Your Marketing Efforts into Automation
- Use the Benefits of Creating a Content
- Boost Your Conversion Rate with Audience Retargeting
- Maintain the balance between Acquisition and Retention
Customer Support KPIs
Customer Support KPIs enables us to monitor and analyze customer relations in order to further optimize customer interactions with the customer support team. It helps us in managing the customer support team and reducing the cost of operation.Given below some examples help to understand the role of the customer support.
24. Customer Service Chat Count:
Customer Service Chat Count KPIs help to improve your products and categories services. It provides a live chat option for customer support that helps to convert visitors into customers through chat.
Tips how to improve Customer Service Chat Count
- Use Positive Language
- Faster responses
- Collect Relevant Information
- Make live chat available where people have questions
25. Customer Service Email Count:
This is the most important customer service metrics that help to track the number of emails of your customer.
Tips to make your customer service emails
- Personalize your interactions
- Promise a timely result
- Good customer support
- Transform negative into positive language
- Be realistic about the situation
26. Net Promoter Score:
Net promoter score provides insight into your customer relationships and helps to measure customer experience of your online store.
NPS = % of Promoters – % of Detractors.
Tips to Increase Net Promoter Score
- Create Feedback Communities
- Encourage Customer Recommendations
- Follow Up Fast
- Identify the high impact journey
- Design your CX program
27. Average Ticket Resolution Time:
This KPI helps to analyze the average resolution time along with the first contact time to develop the best strategy to resolve the ticket.
Tips to reduce your average ticket response time
- Support customers proactively
- Establish set processes and responses for common customer problems
- Use support tools that contextualize customer profile and problems
- Start measuring average ticket response time
28. First response time:
First response time is the average time between the customer inquiry and customer service. This KPI shows the time how long a client waits before being assisted with their request.
Tips how to reduce customer service response times
- Use time-based email alerts
- Categorize and prioritize the emails you receive
- Implement customer service software
29. Cost of the support ticket:
This KPI used for your business to provide top quality customer support at a fraction of the price.
Tips to reduce cost per ticket
- Implement a chatbot for better self-service engagement
- increased proactivity
- Provide field representatives with data, tools, and training
- Analyze incident to service request ratio
Product Performance KPIs
Product Performance KPI enables us to rank the different products in terms of the revenue generated by them. It helps us in finding which products are performing good and which ones are performing poorly.. Here you find some specific KPIs that help your business thrive.
30. Number and Quality of Product Reviews:
The number and quality of product reviews are the most important KPIs that help to track your ecommerce business with valuable feedback.
Tips to increase and improve your customer reviews
- Use Product Review Tools to Manage Reviews
- Make it easy for them to leave a review
- Dominate Your Social Media Presence
- Reply to Negative Reviews
31. Top Products:
This KPI helps to know which product performs best in your business. With the help of this KPI you can decide which products will be featured on top in your store.
Tips to increase sales of your top products
- Tell a story about your product
- Your Sales Message Should Be Clear
- Build a effective Product Strategy
- Always strive for quality
32. Number of Orders:
With the help of this KPI you determine your average order value and specific time periods to see when you should create a sale or discount offer for your products.
33. Time to Purchase:
Time to purchase KPI helps to understand how long it takes someone to buy your product. And you also check the behavior of customers across the different segments.
Product Category Performance KPIs
Product Category Performance KPIs enables us to rank different categories of products in terms of the revenue generated by them. It helps us to find which categories to put on the customer landing page.
34. Active/Inactive Categories:
It measures active or inactive categories of your products that shows the specific time period of customer during the purchase.
Tips to re-engage Active/Inactive Users
- Set small realistic goals
- save your inactive client list as a Smart List
- Use social media marketing
- Provide encouragement and incentives
35. Top Categories:
Top categories KPI helps to categories the main feature of your product on your web page. And also help to measure top performing products for your customers.
Tips to improve top categories of products
- Consider Having A “What’s New” Category Or Filter
- Optimize your product filters
- Use high quality and contextually relevant image
How to track eCommerce stats:
You need better tools to analyze data effectively to get the most helpful experiences for your business. And it depends on choosing the right eCommerce KPIs to track the eCommerce report.
For measuring your ecommerce success, there are three essential objectives you should keep in center:
- Work with Relevant Ecommerce KPIs Only
- Measure Your Ecommerce KPIs as Accurately as could reasonably be expected
- Set up Realistic Benchmarks to Track Success
KPIs help you to calculate customer lifetime value and conduct bits of knowledge that permit you to enhance your store. Our best ecommerce analytics KPIs improve your web based business experience. Choosing KPIs will differ contingent upon your business, industry, specialty, and substantially more.
This article helps to choose the best ecommerce analytics KPIs that truly assist you with seeing how your item is getting along.
When you’ve defined your business objectives and KPIs, it is fundamental for you to screen and update those KPIs consistently. So as to maintain an information driven web based business, it is exceptionally significant for you to have information from all the applicable ecommerce KPIs on a solitary spreadsheet.
Being a business visionary, it is basic for you to see your whole advertising exhibition under one umbrella and distinguish unequivocally what territories require more consideration. Your exhibition should affect your business choices and you should utilize the previously mentioned KPIs to drive activities.
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