Best KPIs for measuring the performance of an eCommerce business
If you’re running an eCommerce business, it’s important to track your performance so that you can make necessary changes and improve your bottom line. But with so many different eCommerce performance metrics out there, it can be tough to know which ones are the most important. Luckily this is now easy with our ecommerce performance dashboard that will provide you with all the visibility and KPI management that you may need.
Let’s look at the essential KPIs for measuring eCommerce performance, how our Ecommerce performance dashboard can help you, and answer any questions you may have on monitoring keyword rankings.
Benefits of our custom dashboard
This dashboard provides a template for those who need an all-inclusive insight into eCommerce data. In addition, the report will be tailored to work with Google Analytics and GA4, giving you access from one place without having multiple trackers open at once or worrying about compatibility issues between tools!
So, by purchasing our Ecommerce performance dashboard, you’ll get two templates: one for Universal Google Analytics, plus a second GA4-specific version (which is recreated with as much data possible). The latter provides even more in-depth information about your site’s traffic metrics, but ensure that some events are set up on account first!
Essential KPIs to monitor for eCommerce
1. Conversion Rate
One of the most important KPIs for eCommerce is the conversion rate, which measures the percentage of visitors to your site who take the desired action, such as making a purchase or signing up for a newsletter. Of course, your conversion rate will fluctuate over time, and a number of factors can impact it, but it’s important to keep an eye on this number to identify trends and make changes accordingly.
2. Average Order Value
Another important KPI for eCommerce businesses is the average order value, which measures the average amount each customer spends per transaction. This metric is important because it can provide insight into whether your prices are too high or too low. If your average order value is low, it could be a sign that your prices are too low and you’re leaving money on the table. On the other hand, if your average order value is too high, it could be putting off potential customers and driving them toward your competitors.
3. Shopping Cart Abandonment Rate
Finally, another key metric to track is the shopping cart abandonment rate, which measures the percentage of visitors who add items to their shopping cart but then leave without completing the purchase. There are a number of reasons why someone might abandon their shopping carts, such as high shipping costs or unexpected fees. Thus, it’s important to keep an eye on this number and make changes accordingly.
4. Customer lifetime value
This KPI measures the average amount of money each customer spends on your site over their lifetime. To calculate it, simply divide your total revenue by the number of customers you have. This KPI is a good indicator of the long-term profitability of your eCommerce business as it shows how much revenue you can expect to generate from each customer over time.
5. Revenue
Revenue is obviously one of the most important KPIs for measuring the performance of an eCommerce business. Without revenue, your business would quickly go bankrupt. However, it’s important to remember that not all revenue is created equal. For example, if you’re selling a product for $10 and it costs you $8 to produce, that’s not very profitable. But, on the other hand, if you’re selling a product for $100 and it only costs you $20 to produce, that’s much more profitable. So, when looking at your revenue KPI, make sure to take into account your margins as well.
These are just a few of the many KPIs that you can track when measuring the performance of your eCommerce business. But these three are a great place to begin if you’re just getting started. By tracking your conversion rate, average order value, and shopping cart abandonment rate, you’ll be able to get a well-rounded view of how your business is performing and where there’s room for improvement.