When you have an e-commerce store, you always want to track as many KPIs as you can for the best results. The great thing about doing so is that you get to learn a lot about the business itself and the quality of those solutions you can achieve. With that being said, there are lots of KPIs you need to track. Which ones are the most important for your business? Here are some tips and tricks to take into consideration.
Average Order Value (AOV)
Knowing the AOV helps a lot because it shows how much people are willing to pay for your products on average. This way you know what type of products are selling, and you can double down on that category. It’s a very good KPI because you will know exactly what you can expect and the results you can achieve.
It’s a great way for you to understand how much profit you are making from selling products and services. The more profits you can get, the better the payoff in the end. You do need to track the gross profit and how much it grows or lowers, and the potential can be great every time.
Conversion Rate (CR)
How many people are converting from ads or your sales funnel? The conversion rate is a great metric that shows how successful your marketing methods are. You always want to have the highest possible conversion rate. Tracking it properly can be very helpful since it shows how much of a success you have with your marketing.
Shopping Cart Abandonment Rate (CAR)
This metric needs to be tracked since it shows how many people are abandoning the shopping cart and don’t finalize their purchase. It might not seem a whole lot, but this metric is important since it shows when and where people abandon the cart.
Cost of Goods Sold (COGS)
With this metric, you get to understand how much you are selling and how much those goods cost. It’s a very important metric that shows you the overall, gross sales.
Customer Lifetime Value (CLV)
How much did a person spend with you since they joined? This metric helps you understand that, and it’s going to convey a lot of information and great content.
Customer Acquisition Cost (CAC)
This metric is the cost of winning a customer that will purchase your product or service. You get to understand how much it costs to connect with that person and make them convert.
Repeat Purchase Rate (RPR)
Are people coming back to you for repeat purchases? Or they just buy stuff once and never come back? With this metric, you get to have a good understanding of that, and it will help bring in a lot of great results. It’s something to take into consideration right away.
All these e-commerce metrics are something you want to focus on as much as you can. It’s always going to be tricky to figure out whether your e-commerce store is successful or not, but with these KPIs, things are a whole lot easier!