25 E-commerce KPIs to Track to Turbocharge Your Business
The ultimate goal of any business is to succeed by growing. You cannot improve on metrics until you don’t measure and track them. This is not a one-time activity, it is an ongoing process.
To gauge your e-commerce business's performance, you require quantifiable metrics known as Key Performance Indicators (KPIs). These KPIs empower you to proactively and efficiently improve your business. In this blog, discover the essence of e-commerce KPIs and the top KPIs to evaluate your e-commerce business performance.
Why should all e-commerce companies measure KPIs?
E-commerce is a game of numbers — more orders or a higher conversion rate translates to additional revenue. The success of a company that sells online is often directly tied to these specific metrics. KPIs allow you to accurately measure a company's e-commerce progress based on performance and make changes as necessary.
Measuring KPIs will help improve the insights you draw from the data, improve performance evaluation, align the goals across the company and solve problems proactively. E-commerce KPIs tend to fall into the following broad categories:
- Inventory and Logistics
- Customer Happiness
- Marketing and Website Performance
How to choose the right KPIs?
Businesses can track more data than ever but to create a KPI that is effective and can have a measurable impact on business performance, it must:
- Impact bottom-line goals
- Be something that can be tracked accurately
- Be measured in real-time
- Be actionable
1. Inventory and Logistics
1.1 Inventory Holding Costs
1.2 Inventory Turnover
1.4 Rate of Return
1.5 Estimated Delivery Date (EDD)
2. Customer Satisfaction and Service Metrics
2.1 Customer Retention Rate (CRR)
2.2 Customer Satisfaction Score
2.3 Refund Rate
2.4 Average Complaint Resolution Time
2.5 Net Promoter Score
3. Marketing and Website Performance Metrics
3.1. Customer Acquisition Cost
3.2 Sell-Through Rate
3.3 Website Traffic
3.4 Bounce Rate
3.5 Average Sessions Duration
3.6 Cost per Conversion
3.7 Traffic-to-Lead Ratio
3.8 Churn Rate
4. Revenue Metrics
4.1 Average Order Value
4.2 Profit Margin
4.3 Conversion Rate
4.4 Shopping Cart Abandoned Rate (SCAR)
4.5 Shopping Cart Conversion Rate (SCCR)
4.6 Cost of Goods Sold
4.7 Customer Lifetime Value (CLTV)
4.8 Repeat Purchase Rate (RPR)
Locale.ai is your one-stop solution to set up triggers and automation on your KPIs!
Locale is an operations automation and issue-tracking solution, mainly focusing on two important steps in the operations process:
- Automating monitoring dashboards and reports and creating a list of actionable tasks to avoid manual monitoring of data, eliminating redundant work in the process.
- Create new incidents every time a new problem occurs and alert the right stakeholders on the operations team.
Using Locale, teams need to set up an alert once to ensure that their averages are constantly monitored and any deviation can be quickly notified to the right stakeholders, to take corrective measures and resolve problems within the desired and agreed-upon timelines.
How to set up an alert on Locale.ai in under 5 minutes?
Step 1: Connect a Data Source [Database, Google Sheets or SaaS Tools]
1.1 Connecting a Database: Locale helps connect with the major databases and data warehouses present today, and integrations are as easy as filling out a few fields and whitelisting Locale’s IP!
1.2 Connecting a Google Sheet: A recently launched feature is the ability to integrate with Google Sheets. GSheets are a major source of data in any organization and all it takes to connect is to specify the GSheet URL.
1.3 Connecting to a SaaS tool via API Integration: Locale also connects with SaaS applications supporting an Open API and this helps assimilate data from the various tools that businesses use on a daily basis.
Step 2: Set up Alert Configurations
In this step, we set rules to monitor the data. This starts with a SQL query or adding filters. Once you do this, you’ll be able to receive the results of the query or filter at a set frequency.
Playbooks can be set to ensure faster resolution, and automatic resolution can be enabled to ensure incidents on Locale are resolved with zero manual intervention, once they move out of the queue on your data source!
Dynamic stakeholder assignments are possible for larger teams. Incidents can be configured to have labels, escalations, and playbooks to ensure adherence.
Step 3: Notify Stakeholders
Connect with your preferred notification streams to ensure that your stakeholders receive all updates on time! Group your notifications to ensure end users don’t get spammed and yet receive all the incidents that they need to prioritise and work on.
You’re good to go! Once the alert is set, incidents will start flowing in when there are new rows identified in your datasource! Ready to transform your sales process and close deals faster? Try Locale.ai today and experience the easiest way to set up sales alerts and stay ahead in the game!
Operating a successful e-commerce store requires your attention in many ways — from building your store to defining your brand to creating your product to offering high-quality customer service. Familiarity with the e-commerce metrics mentioned above will help you identify how well you’re performing those activities and highlight those areas in which you can fine-tune your strategies and tactics to improve your store’s performance and bottom line.
With so many options to boost efficiency, performance and profitability, KPI alerts are an invaluable asset for e-commerce merchants of any size. Implementing a well-planned alert strategy can help your business scale new heights. Embracing alerts is a smart move for any team looking to boost their productivity and results. And with Locale.ai, it’s never been easier to harness the full power of these alerts to grow your bottom line multifold.