Alright, since it’s a New Year, hopefully you have taken time to set your goals. Please don’t feel overwhelmed. First, let me give you some tips for goal planning:
- Note down your bigger overall goal for the year.
- Then work backwards by breaking that goal down into quarters and smaller daily actions.
- Schedule those actions into your planner so that you know what you should do.
Now let’s discuss eCommerce KPIs (key performance indicators), first what are they?
They are indicators that let you know your progress towards a goal.
As you can imagine, with owning an eCommerce brand, tracking certain numbers is very important. So here are some that you should keep an eye on:
Sales – a very important number! Look at your overall performance and note if there are any opportunities? If so, figure out a plan to turn it around.
Gross profit – the extra money you have after you sold your goods. Take your total cost of goods sold – total sales = gross profit. Note if you need to do any price adjustments if your products aren’t profitable.
Average order size – is the average order size your customer typically makes in ONE order. The bigger the average order, the bigger the profit. Think about any potential add-ons you can have, that will help customers increase their order size.
Conversion rate – basically how well your store is converting. You take the total number of visitors and divide that by your total number of conversions. For example, A conversion could be your sales.
Cost of goods sold – is very important to know! Basically how much are you spending to sell a product after all the overhead costs are accounted for.
Abandoned cart rate – this tells you what percentage of shoppers left your site without purchasing items in their cart. If this is really high for your store, it’s definitely worth it to put some methods in place to help you recover those sales. I.e an abandoned cart email! I recommend using Klaviyo (aff link).
New customer versus returning customer orders – this is a great measure to track customer loyalty. If you have a high percentage of returning visitors it’s an indicator that you have built brand loyalty into your business.
Churn rate – gives you an indication of how fast customers are disconnected from your brand. By leaving, cancelling memberships, subscriptions etc.
Keep a nice little tracking sheet so that you know how your KPIs are performing for your online store. Data is going to be one of your profitable assets to help you to get to the next level in your business. Please note, these aren’t all the KPIs you could be tracking, just some important ones to know.
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