Key Performance Indicator

All (or almost all) are now connected and online.
More than 38 million people make at least one online purchase every year.
2019 saw an increase in e-commerce purchases of + 18% with an increase in the average conversion rate of + 6%.
With this in mind, having a platform in which to sell your products or services becomes essential.

The KPIs are numerical indices that allow you to effectively monitor all aspects related to sales and business performance, online and offline.
They are therefore the parameter able to make us understand if a particular initiative is working or not.
The first thing you should do is therefore set goals for your business making sure that in addition to being specific, they are also and above all measurable.
Below we want to give you some suggestions.

Selling KPIs

These indicators are directly related to purchase conversions and business revenue.
It therefore contains a wide range of indicators that can record all the economic steps of the sales process.
For each specific objective, different data can be collected:

  • sales indicators
  • indicators for average order size
  • average profit or margin indicators
  • indicators for the number of transactions
  • indicators for the conversion rate of visits
  • indicators for cart abandonment rate
  • returns indicators
  • indicators of existing or recurring customers
  • customer lifetime value indicators
  • cost indicators for customer acquisition

Marketing KPIs

KPIs for marketing are essential to better structure and manage the various campaigns based on objective data that allow you to take an effective path to business improvement and growth. There are also several of these indicators, the most common are:

  • website traffic indicators
  • indicators of new visitors and returning visitors
  • indicators for time of visit on the site
  • bounce rate indicators
  • traffic source indicators
  • indicators for social media engagement
  • campaign indicators: clicks, average clicks (CTR), pay-per-click traffic volume (PPC), conversion rate

Customer service KPIs

This type of indicators is important for effectively monitoring the response of consumers to the company to ensure customer service that is always ideal.
Although it is not easy to measure the degree of user satisfaction in numerical value, some KPIs can be very useful for getting as close as possible to these objectives.

  • indicators for customer service email counting
  • indicators for number of calls
  • indicators for chat count
  • indicators for average troubleshooting time
  • indicators for the number of reports / disputes

KPI for warehouse, inventory and shipping management

Warehouse management (especially for large businesses) is complex when it comes to eCommerce. The connection with websites, management systems and automatic or digital checkouts becomes a complex development job to avoid any type of error that would send the entire system into a tailspin.
The use of KPIs to constantly monitor this service is essential to verify the efficiency of the service and highlight any problems or weaknesses.

The various processes that regulate the shipping services constitute the company’s reputation and efficiency.
Product delivery problems will affect almost all the various sectors addressed so far. From turnover to customer satisfaction and consequently on customer service work.
Monitoring the progress of this service, recording any problems and improving on less efficient services guarantees an immediate increase in the level of user satisfaction.

  • Inventory turnover indicators (frequency of inventory movement)
  • indicators for average inventory sales days
  • average inventory indicators
  • indicators for delivery time
  • delivery on Time indicators
  • delivery reliability indicators
  • collection punctuality indicators
  • indicators for the Perfect order rate

Why are KPIs so important for an e-Commerce?

KPIs are very important in the eCommerce field, for the management of an online sales activity.
If the objectives to be achieved are established correctly, the right KPIs can be adopted to monitor the progress achieved over time and consequently adopt the right action strategies without running the risk of wasting resources.
By following these tips you could start tracking your values monthly, recording increases or decreases.
After a certain period of analysis (we recommend 4 to 6 months), you can certainly discover interesting things by crossing the data.
It is not always easy to be able to interpret the data, but for this we are there;)