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Top Favourite Ecommerce KPIs for eCommerce Business

KPIs or Key Performance Indicators are the performance indicators people use to assess your company's performance. It is necessary to know how your company is performing so that you can make the required improvements. Data is very powerful; when you have your company data in your hand, you can work more effectively for the company.

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Top Favourite Ecommerce KPIs for eCommerce Business

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  1. Top Favourite Ecommerce KPIs for eCommerce Business By: - Elsner technologies pvt. Ltd.

  2. Introduction.. The eCommerce space has gained much traction over the past few years, and many entrepreneurs have entered this industry. Due to this, competition has also increased a lot in this space. You need to constantly track KPIs and make changes if needed. It is also important to track SEO KPIs, and for this purpose, you can hire the Best SEO Company Australia.

  3. Introduction.. KPIs or Key Performance Indicators are the performance indicators people use to assess your company's performance. It is necessary to know how your company is performing so that you can make the required improvements. Data is very powerful; when you have your company data in your hand, you can work more effectively for the company In simple words, KPIs help measures how companies and individuals perform compared to their set goals.  There are plenty of KPIs in an eCommerce business, but tracking all the KPIs can consume a lot of time and energy of yours. So, this post will tell you about the top eCommerce KPIs to track for your eCommerce business. 

  4. Top 7 eCommerce KPIs 

  5. Average Order value Average Order Value (AOV) is the money that customers spend on a single order on average. You can arrive at – Average Order Value by dividing the total revenue of your store by total orders.  Try to track AOV on a monthly, quarterly, and on an annual basis. You should focus on increasing the AOV of your store. If you try to increase your store’s AOV without affecting the sales, you may witness growth in your revenue

  6. Customer Retention Rate (CRR) Customer retention is the ratio of people who sticks to your eCommerce store for shopping products over a fixed period. The time interval for calculation solely depends on you. You can measure it yearly wise, quarter wise, or any other way.            The formula of CRR is as below:              CRR = E – N/S * 100Here, E stands for – Customers at the end of the period. N indicates – the number of customers you acquired over a period of time. S indicates – the number of customers of your store at the starting of the period. 

  7. Customer Retention Rate (CRR) Customer retention is the ratio of people who sticks to your eCommerce store for shopping products over a fixed period. The time interval for calculation solely depends on you. You can measure it yearly wise, quarter wise, or any other way.            The formula of CRR is as below:              CRR = E – N/S * 100Here, E stands for – Customers at the end of the period. N indicates – the number of customers you acquired over a period of time. S indicates – the number of customers of your store at the starting of the period.  By calculating the customer retention rate, you can know about the customers' loyalty. If you arrive at a higher CRR, then your customers are sticking to your business, and if it is low, you need to work on your company because customers are leaving your company. 

  8. Total sales of your store • Sales are very important for businesses; when a company generates more sales, it can earn more revenue and use it for the growth of the company. Thus, this KPI is very crucial for your eCommerce business.  • It is important to track your store's sales on a regular interval of time; it must be weekly, monthly, quarterly, and yearly. • Small businesses with fewer products must track the sales of product units as well as revenue. However, large-sized companies having a large number of SKUs can track the sales in terms of gross revenue. • In the eCommerce businesses, it has often seen sales being affected due to the poor design of the website. Thus, you must hire a good eCommerce website design Sydney to design an attractive and user-friendly website to aid you in increasing your company's sales. 

  9. The traffic volume • Website traffic is an important metric that helps to know how well your business is doing. More traffic means more leads, and later, you can convert those leads to sales.  • You can easily track your website if you have Google analytics installed to your website. You need to go to Acquisition, then move to All traffic, and later click on Channels to check your website's traffic over a period of time.  • Monitor your website traffic weekly, monthly, quarterly, and annually. You may see higher traffic during the festive period; thus, you need to track your website traffic over more periods to get proper results.

  10. Time spent on your website • Time spent on the site is the average time a person spends on your website, from visiting the website to leaving your website. This KPI is very easy to track; you don’t need to calculate it as it is already available in Google Analytics. Basically, it is shown under the average session duration in Google Analytics.  • You must track this KPI weekly, monthly, quarterly, and annually. If people stay on your website for more time reading your content and watching your products, the chances of sales increase a lot. Thus, you must focus on designing an engaging and attractive website. You can take the help of an eCommerce website design Melbourne company for this purpose. 

  11. Number of orders • The number of orders is the total products purchased by customers from your store. You can track this KPI on a monthly, quarterly, and annual basis. Tracking this KPI can help you a lot in inventory management.  • If you know how many orders are sold from your store, you can create an estimate of the warehouse space you will need over time. Tracking the volume of your orders will also help you to decide on product pricing. This metric has a space in one of the top eCommerce KPIs.

  12. Cost of customer acquisition • The cost of customer acquisition is the sum of money you spend on acquiring a new customer. The formula of this KPI is simple – the cost of the campaign/number of new customers. Suppose you have used $5000 for a marketing campaign, and that campaign helped you gain 100 new customers, then your acquisition cost is $50. • It is important to calculate the cost of customer acquisition to know the marketing campaign's effectiveness. So, make sure to track this KPI for your eCommerce business. 

  13. Conclusion In conclusion, we would say that the competition in the eCommerce industry has increased a lot. In this competitive market, by tracking the KPIs, you can know how your business is performing, and later you can make improvements in your business and achieve success. 

  14. Contact Us Address: Level 13/50 Carrington Street, Sydney NSW 2000 Website: https://www.elsner.com.au/ Phone NO.: 61 02 6100 4040 Email address: hi@elsner.com.au

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