12 KPI’s that you should measure in your e-commerce

Digital Marketing 20 May 2021

If you set goals and establish a strategy to achieve them… You’ll like to know how it thrives, won’t you? Well, with KPI’s you can know.

a car dashboard, simile with KPI's
Imagine the dashboard of a car, are indicators with which you observe the operation of the vehicle

Normally companies usually assemble their own dashboard with their KPI’s and watch everything work.

Read on and find out more about these indicators. ?

What are KPI’s

KPI stands for Key Performance Indicator.

That is, performance indicators. In other words: they are calculated numbers or not, which interpreted give you key information to know how the digital marketing strategy is going, in our case.

We like to repeat things, we know that. But as we told you, you’ll have to have goals and a marked strategy first.

What’s the use of controlling performance if you don’t know what you have to control? Well, that’s it.

analyze strategy performance with KPI's
Analyze the performance of your digital marketing strategy

With these KPIs, together, they will give you such value information that you can make decisions later.

You’ll be able to see what’s failing and reorient tactics or directly strategy.

In the event that concerns us, an e-commerce, the KPI’s will let us know if the business is going aft and every candle.

However, let’s not forget that KPI’s must follow the SMART rule to consider it relevant.

Why it’s important to measure KPIs and keep them in consideration

Well, perhaps the importance of measuring KPI’s has already become clear, but thanks to them, you can monitor the performance of the digital marketing plan, or an online store.

In the form of a checklist we tell you the advantages that it takes to analyze them:

12 KPI’s to be measured in an e-commerce

Here are 12 examples of KPIs that can be analyzed for your e-commerce business.

Average purchase value

It is also known as “average ticket“.

It is very easy, just add all the tickets and divide between the number of orders.

It’s a simple average.

With this KPI you can see if you reach the sales objective per customer and for the future it will be a support for budget planning.

Recurrence ratio

Exactly refers to the number of orders we have for each customer.

How is it calculated?

The total number of orders is divided by the number of customers who have ever purchased.

It will be a good indicator of customers’ loyalty to our brand.

Total orders

This KPI is simple, it is simply to sum the number of orders that have been placed in a specific period.

It will be useful if you have set a target regarding the amount. It will also be relevant information, for example, to the logistics department of e-commerce.

Sales revenue

Logical KPI: Any entrepreneur is attentive to the money that enters their business.

But it will be better to take this into account including the expenses that each sale entails, for example.

Then you’ll get a more real view.

Abandoned shopping cart rate

This KPI is important because if the percentage of people who enter the online store purchase process and leave before finishing it is high, it means that something important is failing.

An e-commerce cannot be allowed errors in the purchase process.

Apart from technical errors in the purchase, it can also be an indicator of which products are the ones left most by people abandoned in the cart, and try to improve or enhance them.

To calculate it? Well, it’s making a percentage of all the people who start a purchase process, how many leave it.

ROAS

It’s like ROI, but more focused on digital marketing.

The acronym means Return on Advertisment Spend.

It means exactly how much money has been generated thanks to every euro invested in digital advertising.

It serves to see how effective our advertising strategy is regarding revenue or sales.

It is calculated by dividing revenue or sales (depends on how you want to focus) by the total spend of advertising. Then multiplying it by 100 for the percentage.

With the KPI ROAS you can see the return on investment
With ROAS you can see the return on advertising investment

Conversion rate

This rate means from people who visit the web, how much they have ended up buying a product.

It is calculated that way, making the division and multiplying by 100 to get the percentage.

It is an indicator that is often used and very useful, but it will still be more so if separated by origin.

That way you can find out which channel we get the most conversions.

So far, they have been KPI’s more focused on e-commerce, to the store. But others with information from the website itself will also be important, as it will be the site by which the customer will go to the purchase.

Number of web visits

This is the total number of visits the page receives.

With this indicator you can know the traffic of the web. The higher, obviously, the better.

Because the more traffic the site receives, the more likely they are to come to the store and end up shopping.

Bounce rate

That’s another percentage.

We’ll see how many people have come in and those people, how much they’ve left without interacting with us.

We’ll have to analyze what’s wrong, and that’s what gets us abandoned, maybe it’s charging time.

Abandonment rate

It is a more complete KPI than the previous one. It is the same, but analyzing all the pages of the web, and the people who have visited more than one.

That way you can know which page is the one they go the most out of, and be able to analyze whys.

Average web time

This indicator is important because it usually displays the interest that the user has.

Also, that the user experience is being satisfactory, because someone who is having an unpleasant experience does not stay long on a website.

The calculation is again another means. They are added up all times on page and divided by the number of visits.

CTR

CTR is Click Through Rate.

It is the click-through rate that after seeing an ad, search engine result, email, etc. clicks on our site.

That is, the percentage of clicks users make regarding the times that link is viewed, so to speak.

It’s important because to make an impact on them and get them to buy in the online store, you’ll need to click and enter, don’t you?

We’ve taught you these examples of KPI’s as we could have taught you many more.

What KPIs are you going to measure in your business?

Find out that KPI’s is best suited to your goals and your marked strategy.

And with them, build your own dashboard. Your decisions will be much more basic.

Contact us if you need help or follow us on our Instagram profile for more tips on e-commerce.

At Kiwop, we are specialists in content writing, digital marketing, web development and e-commerce.

Go ahead, analyze and measure as much as you can ?

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