Are you creating a website for an online store? Simple. You're operating a successful company via your online shop, right? The harder part comes at that point. Any wise businessperson will tell you that data is the key to making wise choices. Bring on the e-commerce analytics dashboard, a useful tool for instantly seeing and analyzing data.
There isn't a universal recipe for what works. Depending on a number of variables, such as product kinds, target market, stage of development (new or existing brand), and business objectives, one company's dashboard will seem substantially different from that of another. However, there are a few crucial "blanket" KPI measures to take into account while developing your bespoke dashboard.
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What Is Most Important to You?
You must carefully choose your e-commerce KPI measurements if you want to be able to track the success of your company. Choose metrics that will assist you comprehend each step a consumer takes before making a purchase and the efficacy of your efforts to meet business objectives by combining customer-centric data with common sense.
While there are numerous metrics that may be tracked, a few will work well as a place to start. Determine the elements of your company's dashboard by analyzing each one:
Overall sales
You'll want to learn more about what's affecting your sales statistics and why in addition to looking at the overall sales figure itself. Keep an eye on each of your sales channels and monitor their development. To further analyze any trends, break down a few months' worth of sales data into a daily study.
Pay attention to weekly and daily data patterns; do sales tend to increase at certain times? If so, look into the source of that traffic and see if anything changes on those days. You may concentrate on tasks that improve your marketing plan with the assistance of this knowledge.
Conversion rates (CR)
The conversion rate (CR) reveals whether or not site visitors become paying clients. Three figures within conversion rates should be regularly monitored for a more comprehensive picture:
- How many people put things in their shopping cart?
- How many folks make it to the register?
- How many people do you buy?
You'll have a better understanding of how your shop is doing and where the customer experience may be enhanced by segmenting conversion rates into these three phases.
Average order value (AOV)
Every time a consumer puts an order via a website or mobile app, AOV keeps note of the typical dollar amount spent. Divide total income by the number of orders to get the average order value for your business. To evaluate overall performance and decide how to accelerate revenue development, the AOV is often used in conjunction with e-commerce KPI measures like CR and Revenue Per Visit (RPV).
AOV is an effective metric to optimize due to its enormous growth potential and low acquisition cost. You can better plan pricing and marketing techniques that might have a big influence on your bottom line if you have a target AOV in mind.
Depending on your results, you could experiment with other methods to raise your AOV. Take Amazon as an example. They provide free delivery, but not without a cost. They may achieve their AOV targets and satisfy consumers' requests for free delivery by imposing a minimum expenditure per purchase. Upselling and cross-selling are other great ways to raise AOV.
Customer Lifetime Value (CLV)
The CLV measure shows how much money a company can make from a single client account overall. Increasing the value of your current clients is crucial since it is less expensive to retain existing customers than to attract new ones. Finding your CLV forces you to consider the whole client experience, not just the transaction. This comprehensive examination of your clients will provide insightful data that can be used to retention strategies and churn control.
Cost Per Acquisition (CPA)
CPA is a statistic that assesses the overall cost of a customer activity that results in a conversion, most often a purchase, a click, or the download of an app. If you want to avoid paying more to acquire a client than they are truly worth to your business, you need to understand CPA.
New vs repeat consumers
The secret to a company's success is finding the perfect mix of new and repeat consumers. Each company, market, and target audience have a different idea of what that balance should look like. Spending a significant percentage of your marketing efforts on maintaining, engaging, and upselling current customers will be helpful since it is less expensive and simpler to convert an existing client than it is to locate and convert a new one.
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“Flexible product with great training and support. The product has been very useful for quickly creating dashboards and data views. Support and training has always been available to us and quick to respond.
- George R, Information Technology Specialist at Sonepar USA
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Factors to Think About
Consider the following when deciding which e-commerce key metrics are crucial for your business to monitor and how to build up your analytics dashboard:
- Relevance: Connect your KPI indicators to your corporate objectives.
- Accountability: Assign a responsible party to each KPI.
- Frequency of measurement: How often are you measuring e-commerce? Depending on the KPI, KPI measurements may be calculated hourly, daily, weekly, or quarterly.
- Simplicity: The goal of data visualization is to simplify and explain the data. Just include the essential KPI indicators that provide useful data in your dashboards.
Don't forget to prioritize your metrics, then decide how challenging it will be to execute for each one. Prior to moving on to more challenging and less impactful measurements, focus on the high impact, low effort KPIs.
Understanding Metrics
In 2023, it's predicted that the e-commerce market would be worth $5.8 trillion. The faster you become an expert with your e-commerce stats dashboard, the faster you can improve your marketing efforts and go out in front of the competition. Your business can keep focused on what matters and deal with problems more quickly if the proper e-commerce KPI measurements are in place.