Even if we all know we need to set clear objectives and measurable targets, sometimes that’s not the reality.We may find ourselves running so fast we’ve lost track of what to measure, how and why.
You can’t manage what you can’t measure.
This quote means that you can’t know whether or not you are successful unless success is defined and tracked. With a clearly established metric for success, you can monitor progress and optimize your processes to reach your targets. Without clear objectives, you’re stuck with guessing or using your gut feeling.
Don’t make KPIs an afterthought
If you’re about to initiate an e-commerce project, make sure you agree on a clear business objective right from the start and communicate it throughout the project team as well as the wider organization.
The Key Performance Indicators (KPIs) are important metrics that will help you measure and monitor progress towards your defined e-commerce business objective. With objectives and KPI targets defined you’ll be able to ensure your project and team stay in the right direction and on track for success. Setting KPIs will improve customer retention and customer satisfaction, leading to an increase in your sales.
E-commerce KPIs that will drive sales
At the end of the day, what makes your business run? Sales. More sales. And larger sales amounts. So, don’t complicate things. Use these three KPIs to track that all have a direct impact on your sales and revenue:
- Traffic: the number of visitors or sessions to your e-commerce store
- Conversion: the percentage of visitors who buy something in your store
- Average order value: the average amount your customers spend on each purchase
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All three KPIs above are easy to measure and track. As an e-tailer, you already have this data at hand in your analytics. What you need to do is to set targets and start monitoring on a daily, or real-time, basis.
Your targets and performance will then help you identify where there are gaps and opportunities for improvement. And that is how you decide which optimization tactics to prioritize and which test scenarios to launch. With the data at hand, you can be confident you’re making the right decisions and can clearly argue for or against creative ideas that might pop up within the organization.
In our upcoming webinar (see link below) we’ll share real-life examples and tips for how to use the e-commerce KPIs to help you identify and prioritize tactics in your day-to-day operations
Make the KPIs part of your e-commerce operations
Ok, so you now know what to measure and how to find data. How do you apply this data-driven approach to your daily work? The very first step is to communicate. Make sure everyone involved in your e-commerce business, from C-level to back-end developers, are aware of the KPIs and targets. With the direction clearly set out, everyone will be able to make better decisions in their day-to-day work, all moving towards the same business goals.
It's all about the KPI's
Want to learn more? We’ve compiled our KPI strategy expertise into an educational webinar session: The KPIs that should define your e-commerce strategy and operations. Click to learn more and watch it at any time.