It is imperative to measure the performance of your eCommerce website. To constantly improve sales, revenue, customer satisfaction, and make impactful improvements to your business, it’s very important to ascertain the performance of your online venture. It’s important to know what factors actually matters when evaluating your business performance. Otherwise, you’ll be left with gut reactions, personal preferences, and other unfounded hypotheses, when you’ll plan to improvise your business performance.
In this article, we are sharing 5 factors that you should take into consideration when measuring your eCommerce site’s performance.
5 KPIs for eCommerce websites
Increase website traffic is one of the important goals of an eCommerce entrepreneur. Higher the website traffic, the greater are the chances to turn website visitors into customers. Although more traffic doesn’t mean more purchases it definitely means increased brand awareness. We recommend you to use Google Analytics to monitor the website’s traffic.
Conversion rate is the percentage at which website visitors convert into customers. High conversion rate signifies that the tour website is powerful enough to convince visitors to buy your products/services or you’ve targeted the right audience to buy your products. The conversion rate of an eCommerce store depends on various factors. If your store is experiencing low conversion rates, we suggest you compare your prices with the competitor’s prices, test your website’s user experience, evaluate the purchase path, target the right audience, etc and use other powerful marketing techniques to boost sales and revenue. Also, opt conversion rate optimization (CRO) techniques to improve your site’s conversion rates.
Your website’s bounce rate is taken into consideration when Google decides how to rank your site with certain keywords. And to be in the top 10 list on Google keyword search is every website’s goal. The bounce rate is an extremely important KPI for all eCommerce stores. Always try to minimize your store’s bounce rate.
Cart Abandonment Rate
Cart abandonment is another important KPI to track for eCommerce stores. Cart abandonment refers to the percentage of buyers who add items to their cart on your site but never actually go through with a final purchase.
Modern shoppers might abandon their carts due to one of the following reasons:
- High Product Price as per their expectation or of your competitor.
- The shipping cost is shown at the time of final checkout.
- Lengthy and time-consuming Check-out requirements, like signing up for an account
- Forced to use a specific payment method or unavailability of their preferred mode of payment.
- Complicated checkout processes, multiple pages or steps
- User error (i.e., they typed their card details incorrectly).
By tracking this KPI very closely, you can diagnose issues with your checkout process before they begin to create major problems for your e-business. For example, if you see that a lot of customers are abandoning their cart upon looking at your shipping rates, you might opt to reduce them or offering free shipping on a certain purchase amount or product category. If you identify that compulsory account-creation or sign-up process is scaring off customers, you could consider adding a “guest checkout” option.
Revenue from the amount invested in advertising
If you are running digital marketing campaigns on social media or running paid campaigns for Google searches, it is important to measure the revenue you’ve earned from the cost invested in advertising. This will help you to reevaluate or redesign the advertising strategies if you aren’t getting enough profits that justify your investments. And if your ads perform well, look for other improvements.
Can’t keep track of your eCommerce website’s KPIs?
Running an eCommerce store is not an easy task. It’s really difficult to evaluate what areas require more attention. If you need help to track your eCommerce site’s KPIs, Planet Web Solution is here for you. We provide end-to-end eCommerce solutions. From eCommerce website design to custom eCommerce development, we are a one-stop eCommerce solution provider. Schedule a one-on-one conversation with our eCommerce experts to share your business requirements.
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